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Malaysia Compliance

Malaysian rules, by region

The engine applies statutory rules and we keep them current. Each page shows when it was last verified.

Talk to an AdvisorLast verified: [DATE]
Rules in the engine

What it applies

ItemWhat the engine appliesTiming
EPFEmployer and employee contributions. Rate depends on wage level and age. [Verify rates]Remit by the 15th of the following month
SOCSO and EISContributions up to a wage ceiling. [Verify ceiling]Remit by the 15th of the following month
PCB (monthly tax deduction)Calculated from the employee tax profile.[Verify date]
Employment Act coverageApplies by wage and role. Overtime and shift rules differ by threshold.Ongoing
Public holidays and rest daysNational plus state holidays.Calendar published yearly

Employment Act rules for Peninsular Malaysia and Labuan apply as shown.

Sabah and Sarawak

Where the rules differ

Sabah and Sarawak have their own labour ordinances. They were aligned with the Employment Act in 2025 but remain separate. State holidays and some thresholds differ. [Details to confirm before publishing; do not publish a threshold figure yet]

  • State public holidays
  • Overtime and shift thresholds [confirm]
  • Rest days and leave rules [confirm]
  • Foreign-worker rules [confirm]
Calendar

Statutory dates

By the 15th
EPF, SOCSO and EIS
For the previous month. [Verify]
Yearly
Public holiday calendar
By region.
When rules change
Update notice
Posted in Resources with a date.
Supply chain audit support

Payroll evidence for ethical sourcing audits

For employers that supply global brands. We treat payroll as a source of audit evidence, not only a back-office task.

01
Employer Pays Principle reviews
The platform records every deduction against an approved rule and flags any that are not approved. This helps you show that workers, including migrant workers, have not borne recruitment costs through salary deductions.
02
Auditable evidence for CSDDD and UFLPA requests
We provide auditable payroll records that support requests under the EU Corporate Sustainability Due Diligence Directive (CSDDD) and the US Uyghur Forced Labor Prevention Act (UFLPA).
03
Wage transparency for third-party auditors
Wage and hours records that auditors such as SA8000 and the Fair Labor Association (FLA) can review, including living-wage comparisons.
See the five audit reports

Supports audits. It does not replace them, and it is not certification or legal advice. [Confirm wording and current CSDDD and UFLPA scope before publishing]

Compliance questions?

Speak with an advisor. We give information, not legal advice.

Talk to an Advisor