Find your employer of record in Malaysia

There are no common benefits in Malaysia

The employer of record in Malaysia can help your company to sponsor the visa of a foreign employee. Nevertheless, you should note that the foreign employee must be certified in the required field of work. In this case, you can use the Critical Occupations List (COL) to learn the types of jobs with low skills. With the Employer of record services in Malaysia, you can obtain any type of visa or work permit.

In the country, a person can opt for the following types of visa: employment pass, professional visit pass, and temporary work pass. Nevertheless, each of them has its characteristics and the criteria that a person must have to obtain it.

When you are outsourcing payroll, you can easily calculate the standard VAT rate. In this case, it is 10% on sales and 6% on services.

Termination Process

A professional employer organization can tell you the legal requirements for the termination process. However, an employer can fire an employee if there is justifiable cause. In addition, the notice of termination must be in writing and the company must send it to the corresponding authorities.

Notice Period

Generally, this type of notification is made 30 days before the termination date.

Severance Pay

Severance pay is only mandatory in certain cases, and the amount depends on the length of the service of the employee. Nevertheless, calculating these payments, if required, is easier with payroll outsourcing in Malaysia. Therefore, the compensation, based on the regular salary rate, would be as follows: For employees with 2 years of full service, the payment would be 10 days of salary for each year. Likewise, for employees between 2 and 5 years old, the payment would be 15 days of salary for each year. Finally, for employees with more than 5 years of work in the company, the payment would be 20 days of salary for each year of service,

Probation Period

For permanent employees, the trial period can be between 1 and 3 months. However, through an EOR Malaysia will learn that there is no difference in employee entitlements during this period.

Paid Time Offs

With the best EOR services in Malaysia, you can determine the paid leave that is outlined in the employment agreement. In this case, leave depends on years of service and is in addition to Malaysian public holidays. Hence, the time of this license is defined as follows: 8 days of paid vacation for employees with two years of full employment. Likewise, from the second to the fifth year of employment the employee receives 12 days per year. In addition, employees with more than 5 years in the company will receive 10 days per year.

Public Holidays

There are 6 national holidays throughout the year.

Vacation Holidays

There are 8 vacation holidays throughout the year.

Sick Days

The employment contract establishes the payment for sickness in the country which depends on a professional medical certificate. Likewise, through HR and payroll outsourcing services, you can determine the amount to be paid, which depends on the years of employment. Therefore, the payment is established as follows: Employees with less than 2 years in the company receive 14 days of leave. On the other hand, if the employee is between 2 and 5 years old, they will receive 18 days of leave. Employees who exceed 5 years of service will receive 22 days of leave.