Dive into articles that cover fundamental concepts and best practices on payroll management in Malaysia.
What are the overtime rates according to the Employment Act?
The provisions in this article apply to employees covered under the overtime sections of the Employment Act (including any employees whose monthly wages do not exceed RM4,000, as well as employees engaged in or supervising manual labour irrespective of wages). Different rates apply depending on whether the work is performed on normal work days, rest […]
How to determine residence status?
Determination of Malaysia Residence Status Generally, residence status for tax purposes is based on the number of days spent by the individual in Malaysia and is independent of citizenship. (Note that spending part of a day in Malaysia counts as being physically present for the whole day – for example, someone who arrives in Malaysia […]
Malaysian Payroll Overview
Let’s have a go at describing Malaysian payroll in 200 words… For each employee, you start with gross salary for the month. Then you need to deduct tax, pension and social security contributions to get to the net monthly salary: PCB: monthly tax deductions based on provisional annual income and with a progressive tax rate […]
What is the difference between a foreigner and a non-resident for payroll purposes?
SOCSO From 1 July 2024, foreign employees contribute to SOCSO in the same way as Malaysian employees (Employment Injury Scheme and Invalidity Scheme for employees aged below 60, and Employment Injury Scheme only for employees aged 60 and above). EPF Foreign employees are not required to contribute, but may choose to do so. This is […]
How to pay an employee leaving my company?
Salary Payout After Termination When an employee resigns or is terminated, certain payments like Severance pay, Payment in lieu of notice and Leave pay may become payable. Severance pay When an employee is terminated, they may be paid severance pay. Severance pay is exempt from EPF and SOCSO/EIS. In addition any part of the severance pay which is […]
