Employers must deduct income tax from employees' salaries monthly under the Monthly Tax Deduction (MTD) system and remit it to the Inland Revenue Board of Malaysia (LHDN). Tax rates are progressive [...]
Employers must contribute to the Employees Provident Fund (EPF), Social Security Organization (SOCSO), and the Employment Insurance System (EIS) for eligible employees. These funds cover retirement savings, social security, and unemployment [...]
Foreign workers are generally covered by EPF and the Employment Injury Scheme under SOCSO, though they are exempt from the Invalidity Pension Scheme and EIS. Employers hiring foreign workers must also [...]
Employers must pay employees by the 7th day of the following month, in accordance with Malaysian labor law. Late payments may result in penalties.
Missing deadlines for EPF, SOCSO, EIS, or tax payments can lead to fines, interest on overdue amounts, and potential legal action. It’s crucial to make timely contributions by the 15th of [...]
The foreign worker levy is an annual fee employers must pay to hire foreign workers, with rates varying by industry. This fee cannot be deducted from employees’ salaries and must be [...]
Employers must keep payroll records, including pay slips, contracts, and statutory contribution details, for at least seven years. These records support compliance and may be required for audits. [...]
Businesses must first register with the Companies Commission of Malaysia (SSM) and obtain any industry-specific licenses. Employers must then register with the Inland Revenue Board (LHDN), EPF, SOCSO, and EIS for [...]
Yes, payroll can be outsourced to professional services in Malaysia. Outsourcing ensures compliance with local laws, helps avoid penalties, and reduces administrative burden, making it ideal for foreign-owned businesses unfamiliar with [...]
Yes, there are several local payroll software options, as well as international tools that support Malaysian regulations. These tools help automate tax, EPF, SOCSO, and EIS deductions, making it easier to [...]
