* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
* Playroll continues to analyse immediate opportunities and fulfilled roles by recruitment partners, contractors and employers to identify in-demand jobs.
The regulation of employment in Malaysia falls under the 1955 Employment Act, applicable to both fixed-term and permanent employment. According to this law, any arrangement exceeding one month requires a written employment contract. Such contracts are mandated to incorporate specific terms of employment, which include:
In Malaysia, probationary periods generally span from 1 to 3 months. According to the Employment Act, there is no distinction in entitlements whether an employee is within or outside the probationary period.
The usual working hours in Malaysia consist of 8 hours per day, not exceeding 45 hours per week. However, it is common for employees to work 40 hours per week.
Overtime in Malaysia refers to work performed beyond the regular business hours. The maximum monthly limit for overtime hours is 104. Employees are restricted from working more than 12 hours in a day, inclusive of overtime, and must receive compensation at a rate not less than 150% of their standard hourly wage.
The Minimum Wages Order 2022 established the new minimum wage in Malaysia at 1,500 MYR per month.
It is common practice in Malaysia to provide a 13-month payment at the end of the year, as specified in the employment agreement.
The computation of individual income tax in Malaysia follows a progressive rate structure. Other variables, such as household status and the number of dependents, can influence the overall tax rates.
Employees in Malaysia are eligible for the state's old-age retirement pension, provided they meet criteria such as being at least 60 years old. The pension amount is determined by considering both the employee's and employer's contributions. Payment options include lump-sum payments, monthly payments, or a combination of both.
In Malaysia, terminations must be justified, and at-will termination does not apply. Acceptable reasons for termination include:
Workers in Malaysia have the right to minimum notice periods, and either party can offer payment in lieu as an alternative to giving notice. The duration of the notice periods depends on the length of their employment:
Severance pay is compulsory in Malaysia when applicable. The amount of payment varies based on the duration of service:
In Malaysia, there are 11 recognised public holidays in a calendar year, which are separate from annual leave. The initial five holidays are national holidays observed throughout Malaysia, and employers have the flexibility to select 6 out of the following 8 holidays to complete the total of 11 public holidays per year: