ISL Integrated Solution entered Malaysia with Glints EOR and no local entity.
An employer of record (EOR) in Malaysia is a locally registered company that legally employs your staff for you. It issues the employment contract, runs payroll, pays EPF, SOCSO, EIS and PCB, and handles HR compliance. You manage the work, so you can hire in Malaysia without your own entity.
Four steps from offer to first payslip. Timing depends mostly on how quickly your hire's documents arrive.
Role, salary, start date and whether the contract is permanent or fixed-term.
Day 1: scoping call
We issue a Malaysian employment contract with Glints as the employer and collect your hire's documents.
Before the start date
We register the employee for EPF, SOCSO and EIS and set up the monthly tax deduction.
Around the start date
We run payroll, file contributions and PCB, and send payslips. You approve before payment.
Every pay cycle
The legal employer's job, end to end, so you do not need a Sdn Bhd to run the team.
Employment agreements aligned with the Employment Act, plus amendments and renewals.
Gross-to-net in ringgit, payslips and payment, by the deadline the Employment Act sets.
Registration and monthly contributions for each employee.
Monthly tax deduction (PCB) calculated and remitted.
We administer the levy where it applies to the employing entity.
Statutory leave plus optional private health cover.
Documents, handbook, resignation and termination steps.
Foreign nationals need a valid pass. We confirm the route that fits the role.
Incorporating a Malaysian company gives you full control but takes more setup. Here is the trade-off.
| What matters | Employer of record | Your own entity |
|---|---|---|
| Time to first hire | Hire once the contract and onboarding documents are in. | Incorporation and statutory registrations come first. |
| Cost drivers | A per-employee service fee on top of salary and statutory costs. | Company setup, company secretary, accounting and payroll resources, and employer registrations. |
| Compliance burden | The EOR files EPF, SOCSO, EIS and PCB and keeps employment records. | You own filings, deadlines and records. |
| Flexibility | Add or remove hires without a permanent footprint. | A fixed commitment with ongoing annual obligations. |
If you later set up a Sdn Bhd, we can help move your team across.
EOR services in Malaysia are usually priced as a fee per employee, on top of salary and employer statutory contributions. We quote after scoping your team.
Get a quote tailored to your hires. See pricing.
Last reviewed: November 2026
A quick orientation, not legal advice. Confirm current rules with us or local counsel before hiring.
The Employment Act 1955 sets minimums for hours, leave, rest days and termination. Some provisions depend on the employee's wage and role.
Employers contribute to EPF for retirement, SOCSO for social security and EIS for job-loss protection.
Employers deduct monthly tax (PCB, also called MTD) from salary and pay it to the tax authority.
Employers in covered sectors above a headcount threshold pay a monthly levy to HRD Corp.
Wages are due by the seventh day after the end of the wage period.
The Act sets no probation period. Three months is common practice and is set in the contract.
Foreigners need an Employment Pass or other valid pass, issued against the employing company.
Official sources: EPFPERKESO (SOCSO and EIS)LHDNHRD CorpLabour Department
ISL Integrated Solution expanded into Malaysia in 2023 with Glints, which hired the local team and provided EOR services so ISL could operate without setting up a legal entity.
Read the ISL storyAn employer of record in Malaysia is a local company that legally employs your staff on your behalf. It signs the contract, runs payroll, pays EPF, SOCSO, EIS and PCB, and manages HR compliance. You direct the work, so you can hire in Malaysia without your own Sdn Bhd.
Yes. The EOR is a registered Malaysian employer, so your hire has a genuine local contract with statutory protections. The key is choosing a provider that files contributions and tax correctly. We confirm the setup for each hire during onboarding.
Pricing is usually a service fee per employee on top of salary and employer contributions to EPF, SOCSO and EIS. Headcount, salary level, contract type and optional benefits all change the quote. Book a consult and we will scope your hires and send clear pricing.
To employ people directly you need a registered local entity. An employer of record lets you hire before you set one up, so you can test the market first. If you incorporate later, we help move your team to your entity.
A recruitment agency finds candidates and then steps away. An EOR becomes the employer after you choose someone, handling contracts, payroll and compliance. Glints can do both, so you can source talent and employ them through one partner. You pay for each service separately.
We do. We register each employee, calculate the employer and employee shares every month and file the contributions on time. You see the full employment cost of each hire on a single invoice, with no need to learn each agency's portal.
Foreign nationals need an Employment Pass or another valid pass, and the rules depend on the role and the employing company. Tell us about the person and the position in a consult and we will confirm what is possible. Pass applications are filed against the employing company, so the answer is case by case.
Share the role and start date. We will map your contract, EPF, SOCSO, EIS and payroll setup and send a clear quote.
