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Employing and managing employees in Brazil involves following specific procedures and regulations.

Here's what you need to know

    • Type of Contract:
      The most common types of employment contracts in Malaysia are permanent, fixed-term, and probationary contracts.
    • 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.
  • 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.
    • 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.
    • 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.
  • Income Tax:
    Employees in Malaysia are subject to income tax. The amount of tax depends on the employee's salary and other factors.
    • 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.
    • 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.
  • 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.
Employing workers in Malaysia involves complying with specific regulations and procedures. However, partnering with a local expert in employment and payroll can simplify the process and help ensure that you’re meeting all the necessary legal requirements while creating a favorable work environment for your employees.

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Contact us today to discover how Agile HRO can fast-track your EOR quickly and compliantly with the local laws of any country. Expansion is not an easy process, but we are here to help your business overcome those challenges.

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Agile will help you hire and onboard talent across countries within a week and even less in many cases. So, you can get up and running in a completely new country in a short period.

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Hiring employees without the need to set up a legal entity in countries will help save a lot of time, sometimes up to 85%. In addition, you will not have to worry about establishing a foreign entity and all the maintenance costs that come with it.

Employee Onboarding
As an expert in local laws and regulations, we can help you adhere to the local and national regulations, including the market norms. We offer a ‘ready-made’ HR support infrastructure that takes the guesswork out of hiring international employees.
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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.

Onsite HR & Legal Team
Our team comprises experts who offer local legal guidance through employee onboarding, benefits distribution, HR compliance, contract renewals, termination, and more.
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