Employer Payroll Tax
Employee Payroll Taxes
Employee Income Tax
1,200 MYR per month in urban areas, 1,100 MYR per month in rural areas.
Salaries are usually paid monthly. Salaries must be paid within 7 days of the following month.
It is only common practice in the manufacturing industry to pay salaries in 13 installments.
Working hours are limited to 48 hours per week. The most common office practice is 45 hours per week (9 am-6 pm, Mon-Fri)
The minimum guideline for overtime pay in the Employment Act is:
- Extra hours worked on a normal working day – 150%
- Rest days – 200%
- Public holidays – 300%
The Employment Act only covers manual workers and non-manual workers with a monthly salary that does not exceed RM 2,000. However, these guidelines are often used as guidance in Common Law cases for other employees.
- Up to two years of employment: 8 days per year
- Between 2 to 5 years: 12 days per year
- 5+ years: 16 days per year
There are 6 compulsory public holidays and 10 optional public holidays (employer should choose at least 5 of these but it is common for offices to close on all). State day is a compulsory public holiday and the day varies from state to state. All other holidays are national.
- Up to two years of employment: 14 days per year
- Between 2 to 5 years: 18 days per year
- 5+ years: 22 days per year
Female employees are covered in full by the employer for a least 90 days if they have been employed in the last four months and have worked for the same employer for at least 90 days in the 9 months prior to childbirth.
There are no provisions in the law regarding paternity leave for the private sector, however, in the public sector, fathers are entitled to 7-14 days.
No specific laws.
Employees can be dismissed for misconduct or poor work performance. Termination is subject to employee challenge for unfair dismissal. It is recommended that proper procedure is followed (warning, time and guidance to improve performance) in order to reduce the likelihood of an unfair dismissal claim.
No set amount but should be equitable between employee and employer
Minimum termination benefits for employees who are fired for reasons not connected to their conduct are as follows:
- Up to two years of employment: 10 days per year
- Between 2 to 5 years: 15 days per year
- 5 plus years: 20 days per year
Probation is optional. The common practice is to have 1-3 months probations. The Employment Act does not distinguish between employees on probation and permanent employees.
The standard Sales and Service Tax (VAT) is 6%.