Run Accurate, Compliant Payroll Across Malaysia

Malaysia payroll combines EPF retirement contributions, SOCSO/EIS social security, and monthly PCB tax deductions under LHDN rules. We outsource the full gross-to-net cycle so HR teams do not manage multiple statutory portals alone.

Whether you operate through your own Malaysia entity or need to hire without one via Employer of Record (EOR), Asia Payroll Hub gives you one process and clear compliance ownership for Kuala Lumpur, Penang, Johor, and nationwide sites.

Read our Malaysia payroll & EOR compliance guide for deeper local detail.

Malaysia Payroll Services We Deliver

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EPF Contributions

Calculate employer/employee EPF rates and prepare monthly KWSP submissions.

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SOCSO & EIS

Handle SOCSO (PERKESO) and Employment Insurance System contributions by wage band.

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PCB / LHDN Tax

Compute monthly PCB deductions and support LHDN reporting obligations.

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Full Cycle Payroll

Salaries, overtime, allowances, claims, and leave pay in one monthly process.

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Bank Payment Files

Generate Malaysia bank transfer files for payday.

Compliance Updates

Monitor EPF/SOCSO/PCB changes affecting employee costing.

Malaysia Payroll Compliance Checklist

Our Malaysia payroll compliance process typically covers EPF, SOCSO, EIS, and PCB/LHDN alongside core employment pay rules:

  • EPF (KWSP): Mandatory retirement contributions for eligible employees with separate employer and employee portions.
  • SOCSO & EIS: Social security and employment insurance contributions based on insured wages.
  • PCB tax: Monthly tax deductions using LHDN schedules and employee tax status.
  • Statutory submissions: Monthly remittances and year-end EA/tax support packs.

Rates, ceilings, and forms are set by local authorities and can change. We configure your payroll to current rules and notify you when updates affect costing.

Common Malaysia Statutory Building Blocks

ItemEmployer focusEmployee focusAuthority
EPFEmployer contribution %Employee contribution %KWSP
SOCSOEmployer contributionEmployee share (if any)PERKESO
EISEmployer contributionEmployee contributionPERKESO
PCBDeduct & remitTax withheld from salaryLHDN

Note: Exact percentages depend on wage bands, citizenship/status, and current schedules. We configure rates per employee category.

How Malaysia Payroll Outsourcing Works

A clear monthly cycle designed for accuracy, approval control, and on-time employee payments.

1

Inputs & Cut-off

Submit joiners/leavers, attendance, overtime, allowances, and one-off payments before the agreed cut-off via our HR technology platform.

2

Gross-to-Net Calculation

We calculate gross pay, EPF, SOCSO, EIS, and PCB/LHDN, and net pay, then produce draft payroll reports for your review.

3

Client Approval

Approve or request adjustments. Nothing is finalized without your go-ahead.

4

Pay & Payslips

We prepare bank payment files and issue payslips so employees are paid on your payday.

5

Statutory Filings

Insurance and tax obligations are prepared for remittance/reporting according to Malaysia deadlines and your entity setup.

Statutory rates & rules last reviewed: July 2026 · Reviewed quarterly for Malaysia payroll

Regional hotel groups on one payroll calendar

Hospitality groups we already support — including Holiday Inn, Hard Rock, Swissôtel, and Karma Group — use Asia Payroll Hub when they need Malaysia EPF, SOCSO, and PCB run accurately with regional reporting.

Want a similar outcome in Malaysia? Request a scoped payroll/EOR proposal or compare paths on our Employer of Record page.

Soalan lazim (Bahasa Melayu)

Apa termasuk dalam payroll Malaysia?

Gaji, EPF, SOCSO, EIS, PCB, slip dan fail bayaran.

Boleh guna EOR tanpa syarikat tempatan?

Ya — EOR untuk pengambilan pekerja patuh.

Already Have a Malaysia Entity — or Still Entering the Market?

Local entity payroll outsourcing

Best if you already have a Malaysia company and want us to run monthly payroll and statutory processes for your staff.

Request payroll outsourcing

Hire without an entity (EOR)

Best if you need to employ talent in Malaysia quickly without incorporating. We handle employment and compliant payroll delivery.

Explore EOR Malaysia

Malaysia Payroll Challenges Foreign Employers Face

Complex EPF, SOCSO, EIS, and PCB/LHDN calculations

Manual spreadsheets miss ceilings, brackets, and exceptions.

Our solution: Automated gross-to-net with draft reports before payday.

Regulatory change risk

Malaysia contribution and tax rules can shift with little internal notice.

Our solution: Continuous compliance monitoring and configuration updates.

Multi-country fragmentation

Malaysia often sits beside other Asia entities with different rules.

Our solution: One regional process via our multi-country payroll platform.

Local process & language gaps

Banks, authorities, and employees expect local documentation clarity.

Our solution: Local specialists plus clear English HQ reporting.

Malaysia Payroll FAQs

What statutory bodies are involved in Malaysia payroll?

Typically KWSP (EPF), PERKESO (SOCSO/EIS), and LHDN (PCB tax), plus company-specific benefits.

Do you calculate PCB automatically?

Yes. PCB is calculated from employee tax profile and pay elements each cycle, then included in remittance packs.

Can foreign companies outsource Malaysia payroll?

Yes — via local entity outsourcing or EOR if you do not yet have a Malaysia company.

How long is setup?

Usually 2–4 weeks including statutory number mapping and a parallel test run.

Do you support EA forms?

We support year-end employee tax statement workflows commonly required in Malaysia.

View all FAQs · Talk to a Malaysia payroll specialist

HR payroll system Malaysia · EOR Malaysia

Expanding Across Asia?

Pair Malaysia with neighboring payroll operations under one partner.

Singapore Payroll → Thailand Payroll → Indonesia Payroll → Vietnam Payroll → Philippines Payroll → All Countries →

Ready to Outsource Malaysia Payroll?

Get a clear quote for compliant Malaysia payroll outsourcing — or hire through EOR without opening an entity.

Get a Malaysia Quote View Pricing