Hire Employees & Contractors


Compliantly hire your distributed team members in


Person working on laptop

Hiring in


isn't so simple. Borderless can help.

To hire new employees in


, your business must have a local legal entity or an Employer of Record like Borderless in place already. Then there’s the management of local employment compliance, taxes, benefits, payroll, and more. Hiring contractors poses similar challenges.

Borderless handles all of that for you, so you can focus on getting to work with your new team member in


while staying fully compliant with local laws and compliance.

Primary Language



Malaysian ringgit (RM, MYR)

Payroll Frequency


Public Holidays

Up to 16

Employer Taxes


Cost of Living Index


Statutory Leave

10 national holidays but it varies – it can do up to 20, depending on the state; Employees are to receive paid time off on at least 11 holidays each year

Sick Leave

Up to 60 days

Maternity Leave

Up to 98 days

Important: Risks of misclassification

In many countries like


, the treatment of employees and contractors is different. If you misclassify a new team member, you could be subjected to penalties and fines. Let Borderless get this right for you, so you don’t have to worry.

Payment Information

Minimum Wage

MYR 1,500 per month

Overtime Pay

Overtime compensation is required and may be included in the salary if the employee earns less than MYR 2,000 per month.

Overtime is not required for employees earning more than MYR 2,000 per month and must be agreed upon between the employer and employee. Employees can work up to 104 hours of overtime per month. Employees are paid 150% of their hourly rate for any additional hours worked. Employees are paid 200% of their hourly rate on weekends and 300% of their hourly rate on public holidays.

Working hours are typically eight hours per day, 45 hours per week and 1 day rest is mandatory.

Additional Pay

In the event of the death of an immediate family member, employees may take one to three days off work in a row as compassionate leave.

Adoptive parents are entitled to 15 days of leave beginning the day their child is placed in their legal custody.

Payroll Cycle

For all Borderless customers, payments will be made in equal monthly installments on or before the last working day of each calendar month, payable in arrears.

Employer Costs & Taxes

  • 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 (for over 10 employees)

Employee Costs & Taxes

  • 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)
  • 0%: Up to 5,000 MYR
  • 1%: 5,000 –20,000 MYR
  • 3%: 20,000 – 35,000 MYR
  • 8%: 35,000 - 50,000 MYR
  • 13.00%: 50,000 - 70,000 MYR
  • 21.00%: 70,000 - 100,000 MYR
  • 24.00%: 100,000 - 250,000 MYR
  • 24.50%: 250,000 - 400,000 MYR
  • 25.00%: 400,000 - 600,000 MYR
  • 26.00%: 600,000 - 1,000,000 MYR
  • 28.00%: 1,000,000 - 2,000,000 MYR
  • 30.00%: 2,000,000 MYR and over

Employment Information

Termination Process

Employee contracts can be terminated for just cause, such as dishonesty, negligence, fraud, or any other work-related offenses, and employees have the right to challenge their dismissal as unfair.

Notice period

There is no stipulated notice period required under Malaysian employment law.

Probation Period

Notably, there is no legal requirement in Malaysia for the duration of the probation period. However, it is not uncommon for it to last between 3 and 6 months, depending on the agreement reached between the Employers and the employees.

Severance Details

Employees who are terminated unfairly (i.e., for reasons unrelated to their performance or conduct) are entitled to severance packages equal to the length of their employment with the company.

  • Employment for up to two years: 10 days pay for each year of service
  • 2 - 5 years: 15 days per year of service
  • 5 years or more: 20 days paid for each year of service

Benefits of working in a country abroad

Borderless Benefits Packages in


When the world is your competition, it pays to incentivize new hires and existing alike. Borderless benefits packages typically include:

Medical Insurance
Dental Insurance
Vision Insurance
Life Insurance
Retirement Contributions

Learn how to hire quickly and easily in


Book your demo of Borderless to help you hire, pay, and take care of new employees and contractors in 170+ countries.

Book a demo