Employer of Record (EOR) in Malaysia

Hire in Malaysia in days, with no entity and no exposure to getting Employment Act compliance wrong. We place you with the right vetted EOR partner, at pricing you will not get going direct, and stay on your side for the life of the relationship.

  • Independent advice
  • Vetted partners
  • Operational in days

What an Employer of Record does for you in Malaysia

An Employer of Record is a company that legally employs your Malaysian staff on your behalf. You choose the person and direct their work day to day. The EOR is the legal employer on paper, which is what lets you build a team in Malaysia without forming your own company.

In practice the EOR partner takes on everything that needs a Malaysian legal entity and local expertise: a compliant employment contract under the Employment Act 1955, monthly payroll with income tax, EPF, SOCSO, and EIS withholding, employer contributions and all statutory filings to LHDN, KWSP, and PERKESO, statutory benefits and leave, and compliant onboarding and lawful exits with the correct statutory notice, since dismissal in Malaysia must meet just cause or excuse. You get a working team in days. The EOR carries the legal and compliance weight; you carry the commercial relationship. The only question worth spending time on is which partner is genuinely strong in Malaysia, and that is the question we answer for you.

01

Legal employer, on paper

A compliant Malaysian employment contract under the Employment Act 1955, with all statutory terms correct from day one.

02

Compliant from day one

Monthly payroll, income tax, EPF, SOCSO, and EIS withholding, employer contributions, and all statutory filings to LHDN, KWSP, and PERKESO.

03

No entity required

Statutory benefits, annual leave, notice and termination benefits under the Employment Act 1955, and lawful onboarding and exits. You get a working team in days; the EOR carries the legal weight.

How it works: four steps to a compliant hire

From first call to a compliant Malaysian hire at work, usually in days.

01 — Scope & quote

We map the role, salary, and start date, and come back with a clear all-in monthly cost. No guesswork, no hidden extras.

02 — Compliant contract

Your employment contract is drafted to Malaysian standards by the partner, and we sanity-check the terms and pricing before you sign. Compliant from day one.

03 — Onboard in days

A correct Malaysian contract is issued under the Employment Act 1955, with all statutory terms from day one. Your hire can start in days.

04 — Payroll & compliance run

Income tax, EPF, SOCSO, and EIS calculated and withheld, payslips issued, statutory filings made to LHDN, KWSP, and PERKESO. You direct the work; the compliance just runs.

What EOR in Malaysia costs

Two parts: the statutory cost of employing someone, and the EOR partner fee. In Malaysia the statutory employer cost runs through three separate schemes, EPF, SOCSO, and EIS, rather than one combined tax. We make all three transparent before you commit, so there are no surprises.

Employer EPF, SOCSO & EIS

EPF at 13% of monthly wages up to RM 5,000, or 12% above that (uncapped). SOCSO adds approximately 1.75% and EIS a further 0.2%, both calculated on wages up to a RM 6,000 monthly ceiling. Combined, this runs to approximately 14-15% of gross salary up to the ceiling (13.95% in the RM 5,000-6,000 band, where EPF has already stepped down to 12%), tapering further as wages rise above it. Predictable and fully costed before you commit.

Minimum wage (2026)

RM 1,700 per month, one national rate under the Minimum Wages Order 2024, in force for every employer since 1 August 2025.

Income tax (employee)

Progressive rate from 0% to 30% across resident bands, starting above RM 5,000 of annual chargeable income and reaching 30% above RM 2,000,000. Withheld monthly at source under the PCB (Monthly Tax Deduction) system, reconciled annually. Borne by the employee, not added to your cost.

EOR partner fee

A transparent per-employee monthly fee. We benchmark across our vetted network, typically 15 to 25% below going direct, and renegotiate for you at renewal.

Why run it through Bradford Jacobs

We know which EOR partners are genuinely strong in Malaysia, by sector and by complexity. We place you with the right one, at pricing you will not get going direct, and stay on your side for the life of the relationship.

Independent, not a single provider

We are independent: we assess what you actually need, place you with the right vetted partner, secure pricing you will not get going direct, and stay on your side to escalate or renegotiate. You get advice, not a product pitch.

  • Independent advice
  • Vetted partners only
  • On your side at renewal

Pricing you can’t get direct

Malaysia’s employer cost splits across three separate schemes, EPF, SOCSO, and EIS, each with its own rate and wage ceiling, which makes it easy to under- or over-quote a monthly fee up front. We benchmark across our partner network for rates typically 15 to 25% below going direct, and renegotiate on your behalf at renewal. Most companies do not know how much room there is to negotiate. We do.

  • 15-25% below direct
  • Network benchmarking
  • Renegotiated for you

Straight to the top when it matters

When something needs resolving, and in global employment it sometimes does, you come to us. We escalate directly, past the helpdesk, to people who can actually move it.

  • Direct escalation
  • No support queues
  • Named account contact

Two decades across markets

Two decades placing and managing EOR arrangements across global markets, with the local knowledge of the Employment Act 1955, the EPF/SOCSO/EIS contribution structure, and Malaysian termination rules that keeps you compliant.

  • EOR specialists
  • Employment Act & EPF
  • Risk removed

Built for conversion to your own entity

Most companies use EOR for 12 to 24 months, then move to their own Malaysian Sdn. Bhd. We plan that crossover and manage the transition when the economics justify it.

  • EOR to entity path
  • Transition managed
  • Crossover planning

Why an EOR is the fastest compliant way into Malaysia

Two things slow foreign employers down in Malaysia: the time to incorporate, and the risk of getting the Employment Act’s notice, termination benefit, and just-cause dismissal rules wrong. An EOR removes both.

Working time, leave & contracts

Compliance handled under the Employment Act 1955 and Industrial Relations Act 1967. Malaysian law requires mandatory EPF, SOCSO, and EIS contributions, a public holiday calendar that mixes national, state, and religious observances, and dismissal that is only lawful for “just cause or excuse,” with statutory notice, rather than at-will termination. An EOR carries all of it correctly from day one, so a wrong assumption never becomes a liability.

Operational in days, not weeks

Incorporating a Sdn. Bhd. in Malaysia is comparatively quick, but you still cannot legally employ anyone until SSM registration completes and a company secretary is appointed. An EOR removes that wait entirely: a compliant Malaysian contract is issued and your hire starts in days. You prove the market first, then incorporate later only if the headcount justifies it. This is the real value of EOR in Malaysia: speed into a market with three separate contribution schemes to get right, with the compliance carried by an expert.

Everything your Malaysian EOR covers

One transparent monthly fee per employee covers all of this. No hidden extras.

Compliant Malaysian contract

A compliant Malaysian employment contract under the Employment Act 1955, issued and maintained for you.

Payroll, EPF, SOCSO & EIS

Monthly payroll run, with income tax, EPF, SOCSO, and EIS contributions calculated, withheld, and filed correctly each month.

Statutory benefits

All statutory benefits administered: paid annual leave, at least 11 gazetted public holidays, maternity leave (98 days) and paternity leave (7 days), and statutory notice on exit, which Malaysia requires since dismissal must meet just cause or excuse. Employee EPF, SOCSO, and EIS together run approximately 11.7% of wages (11% EPF plus 0.5% SOCSO and 0.2% EIS, capped at the RM 6,000 ceiling), deducted from salary, not billed to you.

Compliance & support

Ongoing HR compliance and a single point of contact, for the life of the engagement.

Your questions answered

Straight answers on how Employer of Record works in Malaysia.

Is my hire employed by Bradford Jacobs or by me?

Legally, your hire is employed by the Malaysian EOR partner we place you with, which is what keeps you compliant without an entity. Day to day they work for you: you set the work, the goals, the relationship. You get the team; the partner carries the legal employer obligations.

Usually within days once the role and salary are agreed, with a compliant Malaysian contract from day one. Compare that to the weeks an SSM incorporation and company-secretary appointment can take, during which you cannot legally employ anyone.

Predictable, at approximately 14-15% of gross salary up to the RM 6,000 SOCSO/EIS ceiling: EPF at 12-13% (uncapped), plus SOCSO at approximately 1.75% and EIS at 0.2% (both capped). Add the transparent EOR partner fee and you have your all-in cost.

Yes, when done properly. The EOR is a real Malaysian legal employer meeting all Employment Act, EPF, SOCSO, EIS, and tax obligations. The risk is using an under-resourced partner, which is exactly why we place you with vetted partners and stay on your side.

The compliant contract, monthly payroll (income tax, EPF, SOCSO, and EIS withholding), employer contributions, statutory benefits and leave administration, and ongoing HR compliance. We give you one all-in monthly figure up front, with no hidden extras.

Yes, and most companies do once the headcount and permanence justify it. We manage the transition from EOR to your own Malaysian Sdn. Bhd., and can support the incorporation itself. Most use EOR for 12 to 24 months first.

Ready to hire in Malaysia?

Tell us the role and we will come back with a compliant, all-in monthly cost and the right partner, usually within a day. No entity, no lock-in, no pitch, just the fastest compliant way to get your person working in Malaysia.

Tax and labour data verified July 2026 (LHDN, PERKESO, KWSP). Figures change; we confirm the current position when we scope your hire.