Multiplier is the top pick for Malaysia — owned entity, full EPF/SOCSO/EIS handling, and $199/mo cheaper than Deel. Choose Deel if onboarding speed is the priority (3–5 days vs Multiplier’s similar timeline) or if deep HRIS integrations are needed. Malaysia is a business-friendly market with clear employment law — most providers perform well here, so price and speed are the deciding factors.
Malaysia is one of Southeast Asia’s most accessible hiring markets — modern Employment Act, straightforward compliance, large English-speaking professional workforce. EOR onboarding typically takes 3–7 business days. The 2022 Employment Act amendments introduced new obligations around flexible work and paternity leave that some HR teams are still catching up with.
Why Companies Use EOR in Malaysia
- Fast to hire: EOR onboarding in Malaysia typically completes in 3–7 business days
- EPF/SOCSO complexity: Employees’ Provident Fund and Social Security Organisation contributions require proper registration and monthly remittance — handled natively by top EOR providers
- Employment Act 2022: Recent amendments introduced flexible work rights, paternity leave, and expanded OT provisions that require updated employment contracts
- Sdn Bhd setup time: Incorporating takes 1–2 months — EOR bridges the gap and is cost-effective for under 8–12 employees
Top EOR Providers for Malaysia
| Provider | Malaysia Entity | EPF/SOCSO Handling | Monthly Fee | Rating |
|---|---|---|---|---|
| Multiplier | Owned | Full | $400/mo | 4.7 |
| Deel | Owned | Full | $599/mo | 4.8 |
| Remote | Owned | Full | $599/mo | 4.7 |
| Payoneer WFM | Owned | Full | From $199/mo | 4.3 |
| Remote People | Partner | Full | From $199/mo | 4.2 |
1. Multiplier — Best Value for Malaysia
Multiplier’s ASEAN-first operational model and Singapore headquarters give it strong Malaysian market coverage. Its Kuala Lumpur-based compliance team handles EPF, SOCSO, EIS, and PCB contributions seamlessly — and its contracts are current with the 2022 Employment Act amendments.
Malaysia-specific strengths:
- Owned entity in Malaysia
- Full EPF (Employees’ Provident Fund) registration and contribution management
- SOCSO (Social Security Organisation) and EIS (Employment Insurance System) enrolled from day one
- Monthly PCB (Potongan Cukai Berjadual — income tax withholding) correctly calculated
- Employment Act 2022 compliant contracts including flexible work provisions and 7-day paternity leave
- At $400/mo — the most affordable option with owned-entity compliance
Best for: The default top pick for Malaysia hiring — strong compliance, best price.
2. Deel — Best for Speed
Deel’s owned Malaysian entity and automation-heavy platform deliver consistent fast onboarding. For companies that need someone at their desk in Malaysia within a week, Deel is reliably fastest.
Malaysia-specific strengths:
- Owned entity
- Typically 3–5 business day onboarding
- Strong integration with Malaysian banking for local salary disbursement in MYR
- Handles both Part I and Part II Employment Act employee categories correctly
Best for: Companies prioritising speed over cost savings.
3. Payoneer WFM — Budget Option
Starting at $199/mo, Payoneer WFM offers the most affordable Malaysia EOR with its own entity. Solid for standard professional roles. Post-Payoneer acquisition, its payments infrastructure is strong — salary disbursement in MYR is reliable.
Best for: Budget-conscious companies hiring mid-level professional staff in Malaysia.
Malaysia Compliance Snapshot
| Obligation | Employer Rate | Employee Rate |
|---|---|---|
| EPF (Employees’ Provident Fund) | 12–13% of salary | 11% of salary |
| SOCSO (Social Security) | 1.75% of salary (capped) | 0.5% of salary (capped) |
| EIS (Employment Insurance System) | 0.4% of salary (capped) | 0.4% of salary (capped) |
| PCB (Income Tax) | Withheld and remitted monthly | Progressive 0–30% |
| Human Resources Development Fund (HRD) | 1% (companies 10+ employees) | — |
| Minimum wage | MYR 1,700/mo (national) | — |
| Annual leave | 8–16 days (based on tenure) | — |
| Sick leave | 14–22 days (based on tenure) | — |
| Maternity leave | 98 days | — |
| Paternity leave | 7 days (Employment Act 2022) | — |
Employment Act 2022 — Key Changes for EOR Users
The Employment (Amendment) Act 2022 introduced obligations that require updated contracts and processes:
- Flexible work requests: Employees may formally request flexible work arrangements. Employers must respond in writing within 60 days, with reasons for any refusal.
- Paternity leave: 7 days paid paternity leave is now statutory — previously zero.
- Expanded OT provisions: More categories of employees are now entitled to overtime pay, including those above the previously prescribed salary threshold.
- Forced labour: Enhanced definitions and penalties.
Your EOR must issue contracts compliant with the 2022 amendments. If you’re using an older EOR or a legacy contract template, check the paternity leave and flexible work provisions specifically.
Frequently Asked Questions
What is EPF and how does it work for EOR employees in Malaysia? EPF (Kumpulan Wang Simpanan Pekerja) is Malaysia’s compulsory retirement savings scheme. Employers contribute 12–13% and employees contribute 11% of monthly wages. Your EOR registers the employee with EPF from their first working day and remits contributions monthly.
Does the Employment Act cover all employees in Malaysia? The Employment Act covers employees earning MYR 4,000/mo or below (Schedule 1 employees). Employees above this threshold have fewer statutory protections but are still covered for core matters — discrimination, harassment, forced labour. Your EOR drafts contracts appropriate for each tier.
How quickly can I hire someone in Malaysia via EOR? Typically 3–7 business days for Malaysian nationals. Foreign nationals requiring a work pass (Employment Pass, Professional Visit Pass) take 4–8 weeks.
At what headcount should I set up my own Malaysian entity? Malaysia’s Sdn Bhd setup is relatively straightforward — 1–2 months, MYR 5,000–15,000. EOR breaks even at approximately 8–12 employees using Multiplier pricing.
Which EOR is best for hiring in Kuala Lumpur vs Penang or Johor? All major providers cover Peninsular Malaysia well. For East Malaysia (Sabah, Sarawak), confirm your provider has payroll processing capability there — some have limited coverage outside KL and Penang.
