Country Explorer
Brazil
Employing and managing employees in Brazil involves following specific procedures and regulations.
Here's what you need to know
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- Type of Contract:
The most common types of employment contracts in Malaysia are permanent, fixed-term, and probationary contracts.
- Type of Contract:
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- Contract Requirements:
Employment contracts in Malaysia must be in writing and include specific terms, such as job description, salary, working hours, and duration of the contract.
- Contract Requirements:
- Probationary Period:
Employers are allowed to include a probationary period in employment contracts. The maximum length of the probationary period is 3 months for non-managerial employees and 6 months for managerial employees.
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- Minimum Wage:
The minimum wage in Malaysia is set by the government and is currently RM1,200 per month for Peninsular Malaysia and RM1,100 per month for Sabah, Sarawak, and Labuan.
- Minimum Wage:
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- EPF and SOCSO Contributions:
Employers are required to contribute to the Employee Provident Fund (EPF) and Social Security Organization (SOCSO) for their employees. The contribution rates vary by salary and are calculated as a percentage of the employee's salary.
- EPF and SOCSO Contributions:
- Income Tax:
Employees in Malaysia are subject to income tax. The amount of tax depends on the employee's salary and other factors.
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- Work Permits:
Foreign workers in Malaysia require a valid work permit to be employed legally. Employers must apply for the work permit on behalf of the employee, and must meet specific eligibility criteria before the work permit can be approved.
- Work Permits:
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- Leave Entitlements:
Employees in Malaysia are entitled to various types of leave, such as annual leave, sick leave, maternity leave, and paternity leave. The number of days and eligibility criteria for each type of leave varies by employee's length of service and nature of employment.
- Leave Entitlements:
- Termination of Employment:
Employment contracts in Malaysia may be terminated by either the employer or the employee. Employers must provide written notice to employees before terminating their employment, and comply with specific requirements for severance pay.
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Agile handles international payroll processing in adherence to the local rules of a country’s local jurisdiction. It includes utilizing manual as well as automated processes to ensure the local workforce gets their pay after allowing all the right deductions.
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