"Horizons: 2024 Malaysia Overseas White Paper" mainly introduces employment-related information in Malaysia and the one-stop solutions provided by Horizons, while also comparing employment situations in key Southeast Asian countries.
1. Basic Overview of Malaysia
- Malaysia is a constitutional monarchy and federal country with a diversified economy, and is one of the Four Asian Tigers.
- In 2022, the GDP was USD 343.5 billion, with a growth rate of 8.7%, and the per capita GDP was USD 12,040.
2. Employment Contracts
- Contracts must be written in English and Malay, including terms such as position and compensation.
- The recommended probation period for both fixed-term and indefinite contracts is 3 - 6 months; notice period and severance pay depend on years of service.
- Protected groups cannot be dismissed; employees must give advance notice when resigning; foreign employees must notify the labor bureau.
3. Social Security and Benefits
- Employees enjoy statutory benefits such as paid annual leave and universal healthcare.
- Female workers are entitled to maternity leave and allowances; employers may provide additional benefits such as bonuses and insurance.
- The Employment Act stipulates regulations on compensation and benefits.
4. Tax Regulations
- Resident income tax rates range from 0% - 28%; SOCSO is jointly contributed by employers and employees; the Employment Provident Fund covers pensions.
- Employees and employers contribute to the Employment Provident Fund at different rates based on monthly income; foreign nationals contribute voluntarily.
5. Payroll Management
- Salary is typically paid monthly, with a 13th-month salary paid at year-end.
- Employer labor costs include provident fund, social insurance, etc., accounting for 18.95% - 22.45%.
6. Work Visas
- Work visas require employer sponsorship, with three types of employment permits; foreign employees must meet requirements, obtain approval before employment, and notification is required upon termination.
7. Employee Working Hours
- The standard workweek is 48 hours, no more than 8 hours per day; overtime is compensated accordingly, and there is a minimum wage regulation.
8. Public Holidays and Leave
- Annual leave ranges from 8 - 16 days depending on years of service; there are 10 public holidays, and regulations for sick leave, maternity leave, and paternity leave.
9. Horizons One-Stop Solution
- Provides daily guidance, handles payroll and tax withholding, and can act as the nominal employer responsible for related tax and salary payments.
- Has an EOR platform, fast recruitment, provides labor contracts and local compensation and benefits services.
10. Comparison of Employment in Key Southeast Asian Countries
- Compares employment conditions such as working hours and overtime compensation in the Philippines, Malaysia, Indonesia, Thailand, and Singapore.
