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Labor Laws in Malaysia

  • Annual Leave: Minimum 8 days
  • Maternity Leave: 98 days
  • Public Holidays: 15
  • Workweek: 45 hours per week.

Income Tax in Malaysia

Income Tax in Malaysia is progressive and ranges from 0% to 30%.

Value Added Tax (VAT) in Malaysia

The standard VAT Rate is 16.5%.

Social Security in Malaysia

In Malaysia, both employers and employees contribute to social security. The contributions are as follows:

SOCSO Contributions

  • Employee Contribution: 11.2% of the employee's monthly salary, capped at a maximum salary of RM 4,000.
  • Employer Contribution: 14.45% of the employee's monthly salary, also capped at RM 4,000.

EPF Contributions

  • Employee Contribution: 11% of the employee's monthly salary for Malaysian citizens and permanent residents.
    • For employees aged 60 and above, the contribution is reduced to 5.5%.
  • Employer Contribution: 14.45% of the employee's monthly salary, also capped at RM 4,000.
  • Employer Contribution: 13% for employees earning up to RM 5,000 monthly.
    • 12% for employees earning more than RM 5,000 monthly.
    • For employees aged 60 and above, the employer contribution is 6.5%.

Work Visas Malaysia

The visas available to legally work in Malaysia include:

Employment Pass (EP):

  • It is issued to foreign nationals working in specialized positions (technical or managerial).
  • Valid for 1 to 5 years and renewable.

Temporary Employment Pass (TEP):

  • Issued for less than 2 years of employment positions or salaries below RM 5,000.
  • Valid for up to 2 years.

Professional Visit Pass (PVP):

  • For foreign nationals visiting Malaysia for work purposes while still employed by a foreign company.
  • Valid for up to 12 months.

Social Visit Pass:

  • A short-term visa allows professionals to work in Malaysia for up to 30 days.

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