Overview

Capital
Kuala Lumpur
Currency
Ringgit
Date Format
dd-mm-yyyy

calendar icon Public holidays calendar

Taxes

Employer
12.00% - 13.00% - EPF (Retirement Benefits)
1.75% - Socso - Disability Benefits
0.05% - 7.90% - EIS (Employment Insurance)
Employee
11.00% - 5.50% - EPF (Retirement Benefits)
0.50% - Socso - Disability Benefits
0.00% - Up to 5,000
1.00% - 5,000 - 20,0000
3.00% - 20,000 - 35,000
8.00% - 35,000 - 50,000
14.00% - 50,000 - 70,000
21.00% - 70,000 - 100,000
24.00% - 100,000 - 250,000
24.50% - 250,000 - 400,000
25.00% - 400,000 - 600,000
26.00% - 600,000 - 1,000,000
28.00% - Over 1,000,000

Minimum Wage

General
The minimum wage is RM1050 monthly.

Working Hours

General
Fulltime employmetn is considered 48 hours weekly, and 8 hours daily.
Overtime
Maximum overtime hours monthly is 104. Overtime is paid at 150% for normal workdays, 200% on rest days, 300% on public holidays.

VAT

General
The VAT is 6% standard rate.

Payment

Payroll Frequency
Salaries are paid monthly for work between the first and last day of the month. Paydays are decided between the employee and employer, but are typically at the end of the month.

Mandatory Benefits

Pension Fund
Employers contribute 12% of employees wages. Employee contribute 11% of their wages.
Social Security
0.5% of monthly payroll, according to 24 wage classes. There are no minimum monthly earnings used to calculate contributions (for the lowest wage class of under 30 ringgits, the contribution is based on 20 ringgits). The maximum monthly earnings used to calculate contributions are 3,000 ringgits.

Termination

Termination Process
Employers must provide: * Four weeks notice for employees of up to two years. * Six weeks notice for employees of two to five years. * Eight weeks notices for employees of five or more years.
Advance Notice
Advance notice is one month.
Severance Pay
Severance payments depend on length of employment: * 1-2 years: 10 days wage for every year. * 2-5 years: 15 days wage for every year. * 5+ years: 20 days wage for every year.