Malaysia

Last Update by Julie, 27 Nov 2024

You must log in to be able to download this document

Exchange Rate

22 Jan 2025

 

Cost of Living

Indicative value for a working adult in a city: Kuala Lumpur

Publicly available data (Numbeo, etc..), verified by Marco’s in-country staff

Living Requirement Indicative Amount (MYR)
McDonalds Set Meal 20
Monthly Train and Bus Tickets 50
3 Bedrooms Rental (City Center) 4,964
3 Bedrooms Rental (Outskirt) 2,712

Current Inflation Rate

2.7%

Wage

Minimum Wages

  • MYR1,700 per month (depends on the states/regions)

Median Salary

Estimated based on general positions such as HR, Accounting, Admin roles, in tier one cities.

Job Level Monthly Salary (MYR)
Entry-Level
Fresh Graduate
 2,500
Mid-Level
5 Years
 4,500
Experienced & Managerial Level
10 Years
 7,000
Specialized & Senior-Level
15 Years
 10,000

Annual Salary Growth

5%

Statutory Contribution

Country Level

Type Employer Rates Employee Rates Notes
Employees Provident Fund (EPF) - 13% (for salaries below MYR 5,000)
- 12% (for salaries above MYR 5,000) 		11% All staff
Injury and Invalidity Scheme (SOCSO) 1.75%, capped at MYR 104.15 0.5%, capped at MYR 29.75 All local staff and expats, salary up to MYR 6,000
Employment Insurance System (EIS) 0.2%, capped at MYR11.90 0.2%, capped at MYR11.90 All staff and permanent residents aged 18-60, salary capped at MYR6,000
Human Resource Development Fund (HRDF) 1% - All staff, required for companies with over 10 staff who are citizens
Invalidity Scheme (PERKESCO) - 1.75% for under 60 years old
- 1.25% for above 60 years old
- 1.25% for foreign workers 		- 0.05% for under 60 years old.
- 0% for above 60 years old and
for foreign workers. 		All staff and expats

Other Benefit

Other common employment benefits in Malaysia include:

  • 13th month salary paid at the end of the year
  • Hospitalization, Surgical and Medical Benefits: Approximately MYR230 per month.

Income Tax

Residents

  • Tax Period: 1 Jan - 31 Dec of the previous year
    Tax filing start date: 1 Mar of the following year
    Tax filing due date: 15 May of the following year

Country Level

Taxable Income Rate
5,000 – 20,000 1%
20,000 – 35,000 3%
35,000 – 50,000 6%
50,000 – 70,000 11%
70,000 – 100,000 19%
100,000 – 400,000 25%
400,000 – 600,000 26%
600,000 – 2,000,000 28%
Over 2,000,000 30%

Non-residents

  • Flat rate: 30%

Working Hours

Statutory

45 hours
8 hours Monday to Friday, 5 hours on Saturday

Typical practice

Monday to Friday, 9 am to 6 pm

Overtime

No more than 104 hours per month

  • Workdays: 150% of basic salary
  • Weekends: 200% of basic salary
  • Public Holidays: 300% of basic salary

Employment Contract

Permanent

Contract Format

Must be in writing, in English or Bahasa Malaysia (the official language for public service).

Payroll Currency

MYR

Probation

Typical practice 3-6 months

Contract Period

No minimum duration

Termination

Refer to the employment contract signed

  Voluntary Resignation Involuntary Termination Economic Layoff
Notice Period - Probation 1 day to 30 days as per contract signed 30 days 30 days
Notice Period - Regular 30 days 0 -2 years' service: 4 weeks 2 - 5 years' service: 6 weeks Over 5 years' service: 8 weeks 0 -2 years' service: 4 weeks 2 - 5 years' service: 6 weeks Over 5 years' service: 8 weeks
Severance Pay Not Applicable For at least 12 months. Calculated as: 1/2-month salary for each year of service (pro-rated for partial years) For at least 12 months. Calculated as: 1/2-month salary for each year of service (pro-rated for partial years)

Public Holiday

11 days
Holidays that fall on weekends are observed the Monday after

Country Level

Date Name
31 Mar - 02 Apr Hari Raya Puasa
01 May Labor Day
12 May Wesak Day
02 Jun The Yang di-Pertuan Agong's Birthday, Hari Raya Haji
07 Jun Hari Raya Haji
27 Jun New Year
31 Aug - 01 Sep Malaysia's National Day
05 Sep - 07 Sep The Prophet Muhammad's Birthday
16 Sep Malaysia Day
20 Oct Deepavali
25 Dec Christmas Day

State/Province Level

Melaka

Date Name
01 Jan New Year's Day
29 Jan - 30 Jan Chinese New Year
01 Mar Ramadan begins
15 Apr Declaration of Malacca as Historical City
10 Oct Birthday of the Governor of Malacca

Leave

Leave Type Entitlement Notes
Annual Leave - 8 working days (All staff with 12 months' service)
- 12 working days (All staff with over 2 years' service)
- 16 working days (All staff with over 5 years' service) 		All staff
Maternity Leave 98 consecutive calendar days Expectant mothers in the private sector
Paternity Leave 7 consecutive calendar days Married fathers with 12 months' service
Sick/Hospitalisation Leave - 14 calendar days (All staff with under 2 years' service)
- 18 calendar days (All staff with 2 - 5 years' service)
- 22 calendar days (All staff with over 5 years' service)
Up to 60 days (for all hospitalized staff) 		All staff

Reference

Ready To Expand in Malaysia?

Have any questions? We’d love to hear from you

Contact Us