Malaysia Payroll Services

At Bradford Jacobs, we navigate the administration of the Malaysian payroll system for you. We do the work, so you do not have to.

Malaysian Payroll

Understanding payroll services in Malaysia is a key requirement for international companies expanding into this vibrant Southeast Asia economy.

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How We Can Help You

Setting up a subsidiary in Malaysia to run payroll is one option, but this involves a protracted registration process and poses many challenges. Our Professional Employer Organisation (PEO) and Employer of Record (EOR) services provide complete solutions to every issue your company will face before your planned move into the Malaysian Market. Our teams step in from the start, locating top-rated talent in Malaysia, then guiding you through such procedures and navigating the administration of the Malaysian payroll system for you.

Foreign companies planning to operate payroll for their employers face the complexities of dealing with the relevant taxation and social insurance authorities. They must comply not only with regulations and laws affecting paying their staff, but also benefits and entitlements once the employees are on their payroll.

The paperwork and red tape can be a major hazard in the way of successfully putting your business plan into action … but not when you have Bradford Jacobs at your side. We have made it our priority to take a firm grasp on all the issues surrounding Malaysia’s payroll, taxes, labour laws and every aspect of employment compliance.

Employer of Record (EOR) specialist teams have all the answers and become the effective employer for your staff in Malaysia, while they remain under your daily operational control and focus on taking your business forward.

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Available Malaysian Payroll Options

  • Remote payroll – This option allows businesses to operate under a single payroll system, by adding employees in Malaysia to your parent company’s payroll. However, these employees must operate under different regulations, which is likely to cause problems.
  • Internal payroll – You may operate payroll for your subsidiary, especially if you are committed to growing your company’s presence in Malaysia. However, this does require hiring dedicated HR staff who understand Malaysian employment and compliance laws.
  • Malaysias’ payroll processing company – If you are considering outsourcing, then working with a Malaysian payroll company will help in processing your payroll – but not when it comes to compliance.
  • Malaysias’ payroll outsourcing – However, there is another option available that solves both concerns – by working with Bradford Jacobs. We can handle payroll and compliance for all your employees in Malaysia. We take the administrative stress off your shoulders so you can focus on what you do best.

The first step in setting up payroll in Malaysia is to register your subsidiary company and lodge a unique company name with the Companies Commission (Suruhanjaya Syarikat Malaysia, SSM). The typical choice for a subsidiary is a private limited company (Sendirian Berhad), which is regulated by the Malaysia Companies Act (2016).

Further requirements for putting employees on payroll, include:

  • Registering employees with the Inland Revenue Board of Malaysia (IRBM) known as the Lembaga Hasil Dalam Negeri, which comes under the Ministry of Finance.
  • Registering employees with the social security system, SOCSO, known in Malaysia as PERKESO (Pertubuhan Keselamatan Sosial).
  • Registering employees with the Employment Insurance Injury Scheme (EIIS) and the Employees’ Provident Fund (EPF).
  • SOCSO coverage generally applies to Malaysian citizens and permanent residents, and registration with the EPF is mandatory for both.

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