The Hardest Market ยท Malaysia
Malaysia's HR data
The rules and costs of employing people in Malaysia (Kuala Lumpur), from official sources, in English and Japanese.
Employment rules
| Statutory annual leave | 8 / 12 / 16 days by service (<2 / 2-5 / 5+ years) |
|---|---|
| Public holidays (2026) | 11 days |
| Notice of dismissal | Contract; default 4 / 6 / 8 weeks by service |
| Severance required by law | None by statute above RM4,000/month; 10-20 days' pay per year at or below |
| Typical negotiated exit | No official benchmark |
| Probation | Not statutory; 3-6 months by contract |
| Working hours | 45 hours a week, 8 a day |
| How hard is dismissal? | Hard: just cause needed; Industrial Court can reinstate or award up to 24 months' back wages |
Employer contributions
| EPF (employer) | 12% |
|---|---|
| SOCSO (employer: employment injury + invalidity) | 1.75% |
| EIS (employer) | 0.2% |
| HRD Corp levy | 1% |
Employee contributions
| EPF (employee) | 11% |
|---|---|
| SOCSO (employee: employment injury + invalidity) | 0.5% |
| EIS (employee) | 0.2% |
Take-home pay and employer cost by monthly salary
| Monthly salary | Employee contributions | Income tax | Take-home | Employer cost |
|---|---|---|---|---|
| RM6,000 | RM702 | RM204 | RM5,094 | RM6,897 |
| RM10,000 | RM1,142 | RM922 | RM7,936 | RM11,417 |
| RM15,000 | RM1,692 | RM2,172 | RM11,136 | RM17,067 |
| RM25,000 | RM2,792 | RM4,672 | RM17,536 | RM28,367 |
A single Malaysian citizen under 60, no dependants, tax resident, working in Kuala Lumpur, salary paid evenly over 12 months, no bonus, only the automatic reliefs (individual RM9,000, EPF up to RM4,000, SOCSO/EIS up to RM350). Statutory EPF rate (11% employee); SOCSO first category (Employment Injury + Invalidity) and EIS. Employer is registered with HRD Corp because it has 10 or more Malaysian employees (1% levy). Employer EPF modelled at 12%, the rate for monthly wages above RM5,000 (all example salaries are above that). Year of assessment 2026 = calendar year 2026.
Sources: [1] [2] [3] [4] Checked 2026-11-07; YA2026 (calendar year 2026) rates.