Malaysian Compliance
What Malaysian Law Requires of an Employer
The obligations a Malaysian employer actually carries, and what HRMZY does about each. Every statutory figure links to KWSP, PERKESO, LHDN or the Act itself.
Compliance Assistant covers Malaysia
HRMZY’s Compliance Assistant reads statute text you give it and drafts baseline configuration for review — an administrator accepts or rejects each proposal. Malaysia is one of the 59 countries it supports.
EPF from wage bands, not a percentage
EPF must be computed from the Third Schedule wage bands — not by applying the rate to the exact wage. Percentage-of-salary arithmetic produces the wrong ringgit figure and is a common spreadsheet error. HRMZY’s payroll engine is configured from the band table rather than by applying a percentage to the exact wage. KWSP (EPF) — Third Schedule
EPF rates under 60
For members below 60 the employee share is 11%, and the employer share depends on whether monthly wages exceed RM5,000. HRMZY holds monthly wages per employee, so the applicable employer tier is determined per person per month rather than by one blanket rate. KWSP (EPF)
EPF due by the 15th
Contributions must reach EPF on or before the 15th of the month following the salary month. HRMZY keeps the contribution schedule with the pay run it belongs to, so the submission is not rebuilt from separate records. KWSP (EPF)
SOCSO first and second category
PERKESO splits contributions into a first category for employees under 60 and a second category payable wholly by the employer. HRMZY holds date of birth on the employee record, so the applicable contribution category follows the employee rather than being maintained by hand. PERKESO (SOCSO)
EIS contributions
The Employment Insurance System takes a further contribution from employer and employee. HRMZY runs all configured statutory components in one pay run, so EPF, SOCSO and EIS are produced from the same figures rather than three separate workings. PERKESO — EIS
Annual leave by length of service
The Employment Act 1955 sets paid annual leave on a scale that rises with completed years of service. HRMZY moves employees up the scale on their service anniversary instead of holding one company-wide figure. Employment Act 1955, s. 60E
Sick and hospitalisation leave
Paid sick leave is set by service length, with a separate, longer entitlement where hospitalisation is necessary. HRMZY tracks the two balances apart, which is what the Act requires. Employment Act 1955, s. 60F
45-hour week
Normal hours of work are capped at 45 a week following the 2022 amendment. HRMZY records normal and overtime hours separately on the roster and carries that split into the pay run. Employment Act 1955, s. 60A
98 days maternity, 7 days paternity
Maternity leave is 98 consecutive days and eligible fathers have seven consecutive days. HRMZY tracks both against the statutory entitlement and the eligibility conditions attached to them. Employment Act 1955, s. 37
Minimum wage, RM1,700
The national minimum wage is set by order at RM1,700 a month. HRMZY holds the contractual rate per employee and shows where a rate sits against the order. MOHR — Minimum Wages Order
HRD Corp levy
Registered employers pay a levy on employees’ monthly wages to the Human Resources Development fund. HRMZY produces the wage base the levy is calculated from. HRD Corp
Monthly Tax Deduction (PCB)
Employers must deduct monthly tax from remuneration and remit it to LHDN. HRMZY’s payroll engine holds the applicable tax slabs and applies them inside the pay run, so the deduction and the payslip cannot disagree. LHDN — employer duties