Malaysia

Last updated on September 5th, 2022

Country Overview

Currency  

MYR 

Payroll cycle 

Monthly, 13th salary at the end of the year 

Employer taxes  

18.95% - 22.45% 

Minimum wage  

MYR 1200 per month or MYR 1500 per month for private sector companies with 5+ employees 

Working hours  

8 hours a day, maximum of 48 hours a week 

Latest HR Statutory Updates

AUGUST 2022

  • Section 5 - SOCSO Contribution Salary Cap Increase - Employees' Social Security (Amendment) Act 2022

  • Section 16 - EIS Contribution Salary Cap Increase - Employment Insurance System (Amendment) Act 2022

  • Extension of Scope of EA 1955 - Employment (Amendment of First Schedule) Order 2022

Amendment of Employment Act 1955

  • Section 60F (1) Amendment of Sick Leave and Hospitalisation Leave

    Entitlement

  • Section 18A Calculation of Wages for Incomplete Months Work

  • Section 37 Maternity Leave

  • Section 60FA Paternity Leave

JULY 2022

  • Section 5 - SOCSO Contribution Salary Cap Increase - Employees' Social Security (Amendment) Act 2022

  • Section 16 - EIS Contribution Salary Cap Increase - Employment Insurance System (Amendment) Act 2022

JUNE 2022

  • Minimum Employee EPF Contribution to be Increase to 11% Effective on 1st July 2022

MAY 2022

  • Minimum Wages Order 2022 – Minimum wages increase from RM1,200 to RM1,500

APRIL 2022

  • No Statutory Update

MARCH 2022

  • Minimum Wages increase from RM1,200 to RM1,500

  • Amendment Bill to the Employment Act 1955

    • New Section 18A_Calculation of wages for incomplete months works

    • Amendment of Section 37 Maternity Leave

    • Paternity Leave

FEBRUARY 2022

  • EA Form Updates

JANUARY 2022

  • Details of Wages Subsidy of PSU 4.0 to be included in Payslip

  • Budget 2022 Measures (Update No.2) – Special Income Remittance Programme (PKPP) – Malaysia Exempts Certain Foreign-Source Income from Tax

  • 2022 New Version TP1, TP3 Form and update on Monthly Tax Deduction

DECEMBER 2021

  • Budget 2022 Measure – Minimum EPF Contribution

  • Budget 2022 Measure – Foreign Sources Income Tax

  • Budget 2022 Measures (Update) – Special Income Remittance Programme (PKPP)

NOVEMBER 2021

  • No Recent Statutory Updates

OCTOBER 2021

  • No Recent Statutory Updates

SEPTEMBER 2021

  • No Recent Statutory Updates

AUGUST 2021

  • No Recent Statutory Updates

JULY 2021

  • HRD Levy Exemption July to August 2021

JUNE 2021

  • HRD Levy Exemption June 2021

MAY 2021

  • No Recent Statutory Updates

APRIL 2021

  • Extension deadline for employer registration under the PSMB Act 2001

  • Exemption of Human Resources Development Levy Payment for Period January 2021 until June 2021 for the Tourism and Retail Sectors Affected by Coronavirus (COVID-19) Pandemic

MARCH 2021

  • Expansion of The Pembangunan Sumber Manusia Berhad Act 2001 (Updated)

  • Expansion of The Pembangunan Sumber Manusia Berhad Act 2001

FEBRUARY 2021

  • Form Update on Monthly Tax Deduction (MTD) 2021 according to Budget 2021

JANUARY 2021

  • Extending the Special Tax Relief on the Purchase of Mobile Phones, Computers and Tablets

  • Wage Subsidy Programme 3.0

  • Change in the income tax rate 2021

  • 2021 New Version CP21, CP22, CP22A form

  • Deferment of PTPTN Loan Repayment Extended for Three (3) Months

  • Return Form (RF) Filing Programme For The Year 2021

  • Mandatory Contribution Payment Date For 2021

DECEMBER 2020

  • i-Sinar: EPF Allows Account 1 Withdrawal Up To RM60,000.

  • Statutory Rate for Employee’s Share Of Contribution To Be Reduced To Nine (9) Percent for 2021 (Third Schedule)

  • i-SINAR open to all EPF members whose income is affected by COVID-19

  • IRBM to Stop Accepting Tax Payments by Cheques Delivered Via Mail Or Courier Services Starting 1 January 2021

  • Statutory Rate for Employee’s Share of Contribution to Be Reduced To Nine (9) Percent for 2021

NOVEMBER 2020

  • i-Sinar: EPF Allows Account 1 Withdrawal Up To RM60,000

  • Highlights of the Malaysia 2021 Budget and Supply Bill (Budget) 2021- Change in Tax.

  • Highlights of the Malaysia 2021 Budget and Supply Bill (Budget) 2021- Hiring Incentive

  • Highlights of the Malaysia 2021 Budget and Supply Bill (Budget) 2021- Wage Subsidy

  • Highlights of the Malaysia 2021 Budget and Supply Bill (Budget) 2021- HRDF

  • Highlights of the Malaysia 2021 Budget and Supply Bill (Budget) 2021- Change in Social Contribution

  • Highlights of the Malaysia 2021 Budget and Supply Bill (Budget) 2021- Change in EPF

  • SOCSO: MYFUTUREJOBS Recommendation for Foreign Workers and Expatriate Application

OCTOBER 2020

  • SOSCO Prihatin Screening Programme (PSP PERKESO) extended to contributors in states under CMCO.

  • Temporarily Closed for SOSCO Counter during CMCO Period

  • Notice Of Change Of LHDN Counter Operation Hours During Conditional Movement Control Order (CMCO)

  • Determination of Monthly Tax Deductions (MTD) for Employees with Foreign Nationalities

  • New Public Ruling on Taxation Of A Resident Individual Part I – Gifts Or Contributions And Allowable Deductions

  • SOSCO Prihatin Screening (PSP PERKESO) made available to SOSCO Insured Persons in Sabah, Selangor, Wilayah Persekutuan Kuala Lumpur dan Putrajaya

  • SOSCO- Postponed of All Interview Matters Scheduled from 14 October 2020

  • Public Ruling No. 7/2020 (Appeal Against assessment And Application for Relief) was released by LHDN

  • Postponed of PTPTN Loan Repayment due to Covid-19

SEPTEMBER 2020

  • FAQ regarding BPN 2.0 and GKP 2.0 under Kita Prihatin Economic Stimulus Package

  • Kita Prihatin Economic Stimulus Package

  • SOSCO Prihatin Screening (PSP PERKESO) made available to SOSCO Insured Persons in Kedah

  • Public Holidays in Malaysia for the Year 2021

  • 2020 New Version CP22 Form

  • EPF: Extension of September – December 2020 Contribution Payment Date

AUGUST 2020

  • No Statutory Updates

JULY 2020

  • Notice on PERJANAKERJAYA Hiring Incentive

JUNE 2020

  • Flexible Work Arrangement Incentives

  • Income tax relief for parents on childcare services expenses

  • Hiring and Training Assistance for Businesses

  • Wage Subsidy Programme (WSP)

MAY 2020

  • Enhancement for terms and condition for Financial Assistance under Human Resource Development Fund

  • Extension of EPF Contribution Payment Date

APRIL 2020

  • Prihatin Rakyat Economic Stimulus Package

  • Employment Retention Programme (ERP) for employees who received unpaid leave notice

  • EPF contribution rate table

  • HRDF payment is exempted for 6 months

  • Foreign worker levy payment

  • Employer Advisory Services (EAS)

  • Wage Subsidy Programme

  • Extension of Movement Control order (MCO)

  • Employees Provident Fund (EPF) Contribution Payment Date Further Extended

  • Extension deadlines for Monthly Tax Deduction (MTD) payment

  • Changes to Calculation method of Monthly Tax Deduction (MTD) according to Budget 2020 and Form Update

  • Wage Subsidy Programme (updated)

  • SOCSO Protection for Foreign Workers

  • Extension deadlines for SOCSO and EIS

  • Employer COVID-19 Assistance Programme (e-CAP)

MARCH 2020

  • Employees EPF contribution rate has been reduced to 7%

  • Yang di-Pertuan Agong’s Birthday has been changed to 8th June 2020

  • Financial assistances for employees in Malaysia

  • Restrictive Movement Order has been implemented in Malaysia

  • EPF contribution form KWSP 17A (Khas)

  • Time extension for IRBM payment and tax form submissions

  • SOCSO office will be open

  • PM announced that these initiatives will be introduced to help Malaysians during these hard times

  • PM has announced that the Movement Restrictive Order will be extended

FEBRUARY 2020

  • No Statutory Updates

JANUARY 2020

  • Change in the income tax rate 2020

  • Change in the minimum wage 2020

Other countries

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India

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