Hiring in Malaysia through an Employer of Record
A Malaysian employer contributes to the EPF retirement fund and pays SOCSO and employment insurance contributions for local staff.
On top of salary, the employer pays
- 12% EPF, employer share
- 1.75% SOCSO, employer share
- 0.2% Employment insurance, employer share
This is a floor, not the full cost: major employer charges in Malaysia are left out, as explained below.
What the employer pays on top of salary in Malaysia
- EPF, employer share: 12 percent of monthly wages, for pay above the lower band.
- SOCSO, employer share: 1.75 percent of monthly wages, injury and invalidity.
- Employment insurance, employer share: 0.2 percent of monthly salary.
Lower paid staff carry a slightly higher EPF rate, and foreign staff on most passes pay lower EPF rates. SOCSO and employment insurance stop at a wage ceiling. The HRD training levy is left out.
Yearly cost of one employee in Malaysia, by vendor
Salary plus the charges above plus the vendor's published monthly fee, for twelve months. Not included: benefits and currency conversion fees.
Vendor fees used
Atlas HXM $599, Deel $599, G-P $599, Multiplier $459, Oyster $699, Pebl (Velocity Global) $399, RemoFirst $199, Remote $699, Skuad $199. Not published: Rippling.
Where these numbers come from
- EPF, employer share on kwsp.gov.my read
- Employment insurance, employer share on perkeso.gov.my read
- Each vendor's own pricing page, linked from its name above.