Employment taxes

• Income tax: Residents pay progressive income tax from 0% to 30%, depending on annual income.
• Tax residency: You’re considered a resident if you stay in Malaysia for 182 days or more in a calendar year.
• Non-residents pay a flat 30% income tax rate.
• Payroll contributions (employee side):
• EPF (Employees Provident Fund): 11% of salary
• SOCSO (Social Security): 0.5% of salary (for Category 1, under 60)
• EIS (Employment Insurance System): 0.2% of salary

Leave policy

• Paid annual leave depends on tenure - 8 days for less than 2 years of service, 12 days for 2–5 years, 16 days for 5+ years.
• Public holidays: Malaysia celebrates 5 national public holidays.
• Sick leave: 14-22 days depending on tenure, paid at 100% by the employer.
• Maternity leave: Employees who have worked for more than 3 months are entitled to 98 days of maternity leave, fully paid by the employer.
• Paternity leave: No law covers paternity leave.
• Parental leave: No law covers parental leave.

Employment termination

• Notice period: In Malaysia, the minimum notice period is four weeks and increases based on the length of the employment, up to eight weeks.
• Employers must provide a valid reason, such as poor performance, misconduct, or redundancy.
• Severency pay: Employees whose contracts are terminated due to redundancy or company closure are entitled to severence pay ranging from 10 days' wages for each year of service for less than 2 years of service, 15 days' wages for each year of service for more than 2 but less than 5 years of service, to 20 days' wages for each year of service for over 5 years of service.

Hiring and contracts

• Written contracts are required for any employment over one month. Contracts must be in English
• Must include job title, pay, working hours, leave, and termination terms.
• Probation periods usually last 3–6 months.
• Part-time and remote work arrangements are allowed with mutual agreement.

Payroll and salary payments

• Salaries must be paid monthly, within 7 days after the end of the pay period.
• National minimum wage: MYR 1,700/month (EUR 344/ USD 402).
• Overtime, bonuses, and commissions must be clearly stated in the contract.

Benefits

Mandatory:

• EPF (retirement savings)
• SOCSO (social security and injury protection)
• EIS (unemployment insurance)

Optional / Common extras:

• Health insurance
• Meal or transport allowance
• Performance bonuses
• Flexible working arrangements

Monthly living cost (Kuala Lumpur Edition)

• Rent (1-bedroom apartment, city center): MYR 2,000–3,500 (€400–700/ $430–750)
• Utilities: MYR 250–350 (€50–70/ $55–75)
• Food & groceries: MYR 800–1,200 (€160–240/ $170–260)
• Transport: MYR 150–300 (€30–60/ $35–65)
• Internet: MYR 100–150 (€20–30/ $25–35)

You can live comfortably in Kuala Lumpur on around MYR 3,300 - 5,500/month (€660 - €1,100/ $715 - $1,185)

How to get a local ID number

You’ll need a National Registration Identity Card (MyKad) if you’re a resident.

• Apply at the National Registration Department (JPN).
• Bring your passport, employment pass, and proof of residence.
• For remote workers, you won’t get a MyKad but will need a tax file number from the Inland Revenue Board (LHDN) for payroll and tax purposes.

Social security registration

Your employer handles your EPF, SOCSO, and EIS registrations. You’ll receive a membership number for each and can track your contributions online through the official portals.

Banking

Opening a bank account is straightforward once you have your employment pass and proof of residence.
Popular banks include:

• Maybank
• CIMB Bank
• Public Bank
• RHB Bank
• HSBC Malaysia

Most offer easy mobile banking and online international transfers.

Housing and rental process

• You’ll typically pay 1 month’s rent as a deposit plus 2 months’ security deposit.
• Leases are usually for 1 year.
• Tenants have the right to a safe and habitable property and to get their deposit refunded unless damages occur.

Driving and public transport

• Public transport: Efficient and affordable. Kuala Lumpur has light rail, massive rapid transport, and monorail networks.
• Driving: You can use your foreign license for up to 3 months. Afterward, apply for a Malaysian driving license through JPJ (Road Transport Department).
• Ride-hailing apps like Grab are everywhere.

Emergency and important contacts

• Police/ Ambulance/ Fire: 999

Work permit and visa requirements

All foreign citizens need a work permit to be employed in Malaysia.

Common types:

• Employment Pass (EP): For professionals, valid 1–5 years.
• Professional Visit Pass: For short-term assignments.
• Dependent Pass: For family members.
• Your employer usually handles the visa application through the Expatriate Services Division (ESD).

Business culture and work norms

• Hierarchy matters, but workplaces are becoming more collaborative.
• Respect, humility, and patience are valued, avoid direct confrontation.
• Punctuality is appreciated, but meetings often start a few minutes late.
• Expect a mix of cultures, Malays, Chinese, Indians, and expats, which makes work life rich and dynamic.