Your essential guide to the workforce, working customs, and labor rules in Malaysia
Ringgit Malaysia (RM)
In-Demand Roles
In the Malaysian workplace, peace is valued over confrontation. Employees avoid direct conflict, so building strong relationships helps create a space for open, honest communication and conflict resolution.
$1,900
Malaysia has a minimum wage of RM1,500 as of May 2022 across all states
An employee’s basic salary excludes overtime pay and other compensation
Employees are entitled to overtime pay. The rate increases depending on the day:
Normal work day: not less than 1.5 times the hourly rate of normal working hours.
• Max 8 hours/day, 45 hours/week.
Employees receive 11 paid holidays yearly, including:
Employers can select 6 additional holidays from:
Annual Leave
Special Leaves
Medical Leave
Employers must pay monthly withholding tax to the Inland Revenue Board (LHDN) by the 15th of each month. The fiscal year is from January 1 to December 31.
Annual
Taxable
Income (MYR)
Tax on First Amount (MYR)
Tax Rate on
Excess (%)
5,000 to 20,000
0
1%
20,000 to 35,000
150
3%
35,000 to 50,000
8%
50,000 to 70,000
1,800
13%
70,000 to 100,000
4,400
21%
100,000 to
250,000
10,700
24%
250,000 to 400,000
46,700
24.50%
400,000 to 600,000
83,450
25%
600,000 to 1M
133,450
26%
1M to 2M
237,450
28%
Above 2M
517,450
30%
Annual Taxable
Income (MYR)
Tax on First Amount (MYR)
Tax Rate on Excess
(%)
5,000 to 20,000
0
1%
20,000 to
35,000
150
3%
35,000 to 50,000
600
8%
50,000 to 70,000
1,800
13%
70,000 to 100,000
4,400
21%
100,000 to
250,000
10,700
24%
250,000 to 400,000
46,700
24.50%
400,000 to 600,000
83,450
25%
600,000 to
1M
133,450
26%
1M to 2M
237,450
28%
Above 2M
517,450
30%
Non-Resident Tax Rate: 30% fixed.
Zakat, a religious obligation, is mandatory for Muslim employees. Employers may facilitate this deduction on their behalf.
Labor law in the Philippines provides for a 13th salary which should be paid by the 24th of December of every year, or in two installments – one in June and one in December.
Pro-rating applies if an employee commences work at any time within the calendar year, and has worked for at least a month
Termination with Notice
Notice Period