Malaysia Work Permits & Visas: Processes for Employers

Navigating the work permit and visa process in Malaysia can be complex for employers, particularly when relocating or hiring international employees. Whether you are bringing foreign talent into your organization or hiring from abroad, understanding the different work permit options and the specific visa processes will ensure a smooth transition. This guide outlines the essential steps, requirements, and types of work permits and visas that employers need to know when bringing international workers into Malaysia.

Who Needs a Work Permit in Malaysia

Any foreign national intending to engage in employment in Malaysia is required to obtain a work permit. This mandate applies to all sectors and job roles, encompassing both skilled and unskilled positions. Employers must secure the appropriate work permit for each international employee before they commence work, ensuring adherence to Malaysian immigration laws.

Types of Work Visas in Malaysia

Malaysia offers several categories of work visas, each tailored to specific employment needs and durations. Understanding these options is crucial for employers to determine the most suitable permit for their prospective international hires.

Requirements for a Work Permit in Malaysia

Securing a work permit in Malaysia necessitates meeting specific criteria set by the immigration authorities. Employers must ensure both the company and the prospective employee fulfill these prerequisites to facilitate a successful application.

 
• Employer Eligibility: Employers must obtain approval from the relevant regulatory bodies, such as the Expatriate Committee, to hire foreign workers. This involves demonstrating the necessity of hiring international talent for the specific role.
 
• Employee Qualifications: The foreign employee should possess the requisite qualifications and experience pertinent to the job position. For instance, an Employment Pass typically requires a minimum monthly salary of RM3,000.
 
• Age Restrictions: For Temporary Employment Passes, employees should generally be between 18 and 45 years of age.
 
• Health Requirements: Prospective employees must undergo a medical examination and be certified fit by a registered clinic.
 
• Passport Validity: The employee's passport must be valid for at least 18 months from the date of application.

Malaysia Work Permit Application Process

 
• Step 1: Expatriate Post Approval: Employers must apply for approval to hire foreign talent by submitting an application to the relevant authority.
 
• Step 2: Work Permit Application: Submit the work permit application to the Immigration Department with necessary documents.
 
• Step 3: Visa with Reference (VDR): Upon approval, a VDR is issued, enabling the employee to enter Malaysia.
 
• Step 4: Entry and Endorsement: After entering Malaysia, the employee reports to the Immigration Department to endorse the work permit.

Process for Visa Sponsorship in Malaysia

Employers act as sponsors for foreign employees, bearing responsibility for work permit applications and ensuring compliance. This includes obtaining approvals, submitting documentation, and covering fees. Employers must ensure that employees adhere to permit terms to avoid penalties.

What Are the Fees for a Work Permit or Visa in Malaysia

The fees associated with obtaining a work permit in Malaysia vary based on permit type and sector.

Processing Time for a Work Permit or Visa in Malaysia

The processing time generally ranges from 7 to 12 weeks, depending on the permit type and completeness of the application. This includes employer approvals and visa issuance processes.

Work Permit Renewal Periods in Malaysia

Employment Pass renewals align with the employment contract, up to 60 months. Initiate renewals 3 months before expiration.

Visa Requirements for Digital Nomads in Malaysia

Currently, Malaysia does not have a specific digital nomad visa. Remote work on a Tourist Visa is not legally permitted.

Common Challenges and Tips for Employers Hiring in Malaysia

 
• Regulatory Requirements: Stay informed on immigration laws.
• Processing Delays: Ensure all documentation is complete and accurate to avoid delays in processing work permits.
 
• Cultural Integration: Support international employees with cultural orientation and assistance to help them adapt to the local environment.
 
• Cost Considerations: Budget for application fees, levies, and other related costs when hiring foreign employees.

Hire Global employees without hassle with an EOR solution

Expanding your workforce across international borders is an exciting step, but it can be a logistical nightmare to hire and pay employees in different countries. That’s the advantage of using a trusted Employer of Record like Playroll. They can:

• Handle your international payroll: An EOR will act as your payroll provider, paying your employees on your behalf in the local currency. The company will also have in-depth knowledge of local tax codes, regulatory practices, and everything else that goes into managing global payroll.
• Alleviate compliance concerns: Different countries each have their own federal and local laws governing employee payments. An EOR helps ensure that you are compliant with the unique set of laws for any country in which your company operates. This is extremely important since a compliance slip-up can result in heavy fines or even a lawsuit.
• Hire and pay international contractors: Sometimes a particular project or role doesn’t require hiring a full-time employee. An EOR gives employers the flexibility to also hire contractors as needed, and avoid the potential for misclassification under local labor law.