Malaysia Payroll Service

Managing payroll for foreign businesses can be a complex and time-consuming task, given the diverse statutory requirements involved. Opting for payroll outsourcing emerges as the optimal solution for companies looking to streamline their operations.

Entrusting Premia TNC with payroll responsibilities ensures minimal hassle and enhances overall business efficiency.

Payroll services we offer

  • EPF (Employees’ Provident Fund) Account Application

  • SOCSO (Social Security Organization) Account Application

  • EIS (Employment Insurance System) Account Application

  • Monthly Payroll Processing

  • Monthly Payslip and Payroll Report

  • Submitting Statutory Payments (EPF, SOCSO, EIS, PCB, HRDF)

  • Preparation of Form E and Form EA

  • Work Permit Application for Foreigners

Employees Provident Fund (EPF)

Employers are obligated to fulfill their responsibilities by making EPF contributions for individuals engaged under a contract of service or apprenticeship. It is essential to accurately deduct the monthly contributions from employees’ salaries and promptly remit them to EPF. 

Payment of monthly contributions must be completed on or before the 15th of each month.

Social Security Organization (SOCSO)

Under the Employees’ Social Security Act 1969 (Act 4), the Social Security Organization (SOCSO) offers two social security schemes aimed at safeguarding the well-being of employees and their dependents.

Eligible employers

Every employer who engages one or more employees, as per the definition outlined in the Act, is obligated to register and contribute to SOCSO.

Eligible employees

Every individual employed in the private sector under a contract of service or apprenticeship, including contractual or temporary staff of the federal or state government and federal or state statutory bodies, must be registered and included in SOCSO coverage. The contribution rate is limited to a monthly wage ceiling of RM5,000.00.

Payroll contributions in Malaysia

Under the Act, eligible employers and employees are mandated to make compulsory contributions to SOCSO. These contributions are categorized into two distinct groups.

First category

The Employment Injury Insurance Scheme and the Invalidity Pension Scheme require contributions from both employers and employees. In this category, the contribution rate consists of 1.75% from the employer’s share and 0.5% from the employees’ monthly wages, as per the specified contribution schedule.

Second category

In this category, the contribution rate is 1.25% of employees’ monthly wages, and it is the responsibility of the employer to make the payment according to the contribution schedule. For the Employment Injury Scheme, all employees who have attained the age of 60 must be included in this category.

SOCSO: Employment Insurance System Act 800

Implemented in January 2018, the Employment Insurance System (EIS) offers prompt financial support to insured workers facing job loss. In addition to immediate assistance, affected individuals receive help in securing new employment, including necessary training to enhance their employability.

Objectives of the EIS

The program aims to promptly provide financial aid to contributing employees experiencing job loss, facilitate their re-employment through the Re-Employment Placement Program, and enhance their employability through vocational training.

Contribution rate for EIS

Both employers and employees contribute 0.2% each to the specified fund.

Human Resources Development Fund: PSMB Act 2001

This act establishes the imposition and collection of a Human Resources Development (HRD) levy to promote the training and development of employees, apprentices, and trainees. It further outlines the establishment and administration of the fund by the corporation, addressing related matters.

Sectors sheltered by the PSMB Act 2001:

Under Section 13(1) of the PSMB Act 2001, employers in the manufacturing, services, mining, and quarrying sectors are obligated to register with HRDF within the prescribed time and manner as specified by the Act.

This registration requirement is mandated to ensure compliance with the Act’s provisions.

Conditions for registration eligibility

The PSMB Act 2001 applies to employers within the 63 sub-sectors, with a mandatory (1% levy) for those having 10 or more Malaysian employees and a voluntary (0.5%) for employers with 5 to 9 Malaysian employees.

For in-depth details, do reach out to us.

Frequently Asked Questions

The Employment Act provides coverage for all employees in Malaysia, regardless of wages or occupation, excluding domestic servants. However, certain provisions of the Act do not apply to employees earning above RM4,000 per month.

Included wages encompass basic wages and all other cash payments due to an employee for work performed under their contract of service, with specific exclusions.

Employers are required to remit employee salaries no later than seven days following the conclusion of the salary period.

All employees are entitled to rest days, statutory holidays, and paid annual leave during their employment, with the Employment Act outlining minimum guidelines for these entitlements.

Premia TNC has the optimal solutions for all your business needs.

Get in touch today for a FREE consultation.
No hidden costs, no obligations.

Feel free to drop us an email too!
[email protected]

Premia TNC has the optimal solutions for all your business needs.

Get in touch today for a FREE consultation.
No hidden costs, no obligations.

Feel free to drop us an email too!
[email protected]