Malaysia Payroll Checklist

In Malaysia, a payroll checklist is a structured guide to help employers ensure that payroll processes are accurate, compliant, and timely.

It covers statutory requirements under Malaysian law, including EPF (KWSP), SOCSO (PERKESO), EIS, and PCB (monthly tax deductions), while also managing salaries, allowances, bonuses, overtime, and deductions.  

A comprehensive payroll checklist typically includes:

• Verification of employee attendance, leave, and overtime
• Calculation of gross salary, allowances, and bonuses
• Deduction of statutory contributions: EPF, SOCSO, EIS, and PCB
• Issuance of payslips and payroll reports
• Submission of statutory contributions and taxes to LHDN and relevant authorities
• Documentation of payroll approvals and reconciliations

Using a payroll checklist helps Malaysian employers avoid compliance issues, payroll errors, and potential fines from statutory authorities. It improves operational efficiency, ensures timely submission of contributions, and maintains accurate records for audits.

A structured payroll process also enhances employee trust, reduces disputes, and supports long-term HR and financial planning.

Payroll professionals must also stay informed about updates in tax regulations and employment policies, which can change frequently.