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 [...]
The EPF is a retirement savings scheme in Malaysia that requires both employers and employees to contribute monthly, providing financial security for employees post-retirement.
All Malaysian citizens and permanent residents working in Malaysia must contribute to the EPF. Foreign workers may contribute voluntarily if offered by their employer.
For employees under 60, the contribution rate is 11% from employees and 12–13% from employers, depending on income. Different rates apply for employees over 60.
Yes, partial withdrawals are allowed from Account 2 for specific needs like housing, education, and medical expenses, while Account 1 is mainly for retirement.
The EPF has two accounts: Account 1 (70% of savings) for retirement and Account 2 (30%) for approved early withdrawals.
