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Malaysia

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Country Details

Currency

Malaysian Ringgit (MYR)

Official language

Malay

Capital

Kuala Lumpur

Is English spoken?

Yes

Time Zone

GMT + 7:00

Salary payment frequency

Monthly

General Overview & Economic Facts

Information

The main exports from Malaysia are electrical and electronic products, chemicals and petroleum
16.63% of the population is between the ages of 15 and 24 years, with 40.86% of the population being between the ages of 25 and 54. Malaysia has a fairly youthful population, making it a favourable country to employ young, energetic employees

Population size

3,27,30,000

GDP

$447B

Inflation level

3.40%

Average earning + minimum wage

Average earning - RM 6,610/month and RM 79,300/year.
minimum wage - MYR 1,200.00 per month and MYR 5.77 per hour

Overview of the labour law

The Employment Act 1955 is the primary source of employment law in Malaysia. It provides for the basic terms and working conditions for employees. Additional sources of employment law include the Industrial Relation Act, the Holidays Act, the Employees Provident Fund Act and the Employees Social Security Act
Malaysias employment law provides strong protection for employees

Employment Details

Number of Public Holidays

14

Working Hours

Maximum of 8 hours per day and 48 hours per weekMinimum 30-miute meal interval after 5 hours of work Minimum 45-minute meal interval if working 8 hoursTypical working hours are 09h00 to 17h00 Monday to Friday

Benefits
  • Health Insurance
  • Vision Insurance
  • Dental Insurance
  • Pension or 401(K)
  • Mental Health Support
  • Life and Disability Insurance
Overtime

Employees may work a maximum of 4 hours per day and 104 hours per month

Notice Period

Employed between 0 and 2 years- 4 weeks notice Employed between 2 and 5 years- 6 weeks notice Employed for 5 or more years- 8 weeks notice

Probation Period

There is no statutory probation periodEmployees can expect a probation period of between 3 and 12 months

Severance Pay

Employed between 0 and 2 years- 10 days pay for every year of employment Employed between 2 and 5 years- 15 days pay for every year of employment Employed for 5 or more years- 20 days pay for every year of employment

Employee Income tax

Income Tax is Pay As You Earn. Income bracket per annum

0 - 5,000.00 0.00% 5,001.00 - 20,000.00 1.00% 20,001.00 - 35,000.0 3.00%

35,001.00 - 50,000.00 8.00% 50,001.00 - 70,000.00 13.00% 70,001.00 - 100,000.00 21.00%

100,001.00 - 250,000.00 24.00% 250,001.00 - 400,000.00 24.50% 400,001.00 - 600,000.00 25.00%

600,001.00 - 1,000,000.00 26.00%

Employer Social cost

12 - 13%- Provident Fund (for employees up to the age of 60)
4 - 6.5%- Provident Fund (for employees over the age of 60)
1.75%- Social Security (SOCSO)
0.20%- Employment Insurance (EIS)
1%- Human Resource Development Fund

Employee Social cost

9%- Provident Fund (employees up to the age of 60)
0.00 - 5.5%- Provident Fund (employees over the age of 60)
0.5%- Social Security (SOCSO)
0.20%- Employment Insurance (EIS)

Benefit packages

Health Insurance
Vision Insurance
Dental Insurance
Pension or 401(K)
Mental Health Support
Life and Disability Insurance

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