Testimonial
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
5/5
Through our PEO (Professional Employer Organization) services in Malaysia, INS Global can help you set up, hire employees, and quickly start working. We are your local partner in Human Resources services, helping you to cut through the red tape and limit the costs connected to global expansion.
For companies wishing to hire and manage crucial HR functions in overseas target markets in as little as 48 hours, a PEO in Malaysia (Professional Employer Organization) offers a simple and secure path to total global mobility.
As a third-party organization that takes on the responsibilities of an employer, an Employer of Record (EOR) in Malaysia provides companies with a cost-effective and simple solution for the complications of overseas hiring and employee management. INS Global offers EOR services for companies looking to streamline the complexities of global mobility.
Our PEO services (sometimes called an EOR) in Malaysia works as a local partner that provides HR services for companies looking to expand their business in foreign markets without requiring them to establish a separate legal entity.
Want to have a Team in Malaysia TODAY?
PEOs can provide several services to help you build a successful company in Malaysia. Our PEO in Malaysia can legally employ your staff, manage employee services (payroll outsourcing and benefits), and handle local regulations, saving you time and money.
Want to have a Team in Malaysia TODAY?
The PEO’s local knowledge of legal and administrative best practices will ensure that your company maintains compliance with each area of local laws.
Common issues with HR can lead to an increasingly high incidence of fees and fines when entering Malaysia. A PEO provides local expertise that will help reduce these costly errors
By providing payroll outsourcing services in Malaysia, alongside recruitment and contractor management, a PEO takes care of the HR processes required for your entry into Malaysia while your company increases its speed of growth
Estimated time for Company Incorporation in Malaysia: 4-12 months
Estimated time to establish a PEO relationship in Malaysia: 5 days
*Estimate
Incorporating a company in Malaysia can be a difficult, time-consuming process that requires you to establish a legal and physical presence. Our PEO allows your company to operate without having to go through the traditionally required steps to form a separate entity.
Manuel Ramos
TERAO ASIA
Managing Director
We think INS Global is a good solution about starting business in new and complex markets. Understanding the market doesn’t mean you need to set up a company immediately.
INS Global’s PEO professionals manage your employee recruitment and management needs in Malaysia in 4 simple steps:
Once your team has decided that expanding into Malaysia is the right decision, the next step is understanding the difference between an EOR and a PEO to take full advantage of these two solutions.
The Employment Act of 1955 is the main source of legislation related to labor matters in Malaysia. The Employment Act provides the minimum terms and conditions for applicable employees. Any contract that attempts to offer less favorable benefits than those stipulated in the Employment Act shall be void and the benefits replaced with those in the Employment Act.
The Employment Act does not apply to all employees. The protection offered under it is only applicable to these categories of workers:
The minimum wage is RM1,000 per month, as stipulated by the Minimum Wages Order of 2016. In general, an employer is required to deduct from their employee’s salary every month their contribution to the Employees Provident Fund (EPF), their contribution to social security organization (SOCSO), and their monthly income tax deduction.
Based on section 60A(1) of the Employment Act, no qualified employee shall be allowed to work for: more than 5 consecutive hours without a period of rest for 30 minutes or more than 8 hours a day.
For employees that are qualified, there are a minimum of 11 public holidays that the employer must recognize. Of these 11, the following 5 are mandatory:
The other 6 days are holidays that must be chosen by the employer. Once these 6 holidays have been chosen, the employer should communicate which days they have chosen to employees in an obvious way. In cases where the holiday falls on a typical rest day, the holiday will be moved to the following Monday.
Under the Employment Act, the minimum required annual leave that an employee is entitled to is 8 days for less than two years, 12 days for less than 5 years, and 16 days for more than 5 years.
Under the Employment Act, the minimum required sick leave days are 14 days for less than 2 years, 18 days for less than 5 years, and 22 days for more than 5 years. In cases where the employee will need to be hospitalized, the employee will be entitled to 60 days per year.
There are certain conditions that must be met for a female employee to be entitled to paid maternity leave.
To meet the requirements, the employee must have worked for at least 90 days at the company and have been at the company consistently in the last 4 months. Once these conditions are met, a female employee will be entitled to no less that 60 days of maternity leave.
If an employee remains absent from her work after the end of maternity leave, she is protected from termination for 90 days following the end of her maternity leave.
For both resident and non-resident companies operating in Malaysia, corporate income tax will be imposed on income that accrued from within Malaysia. The current corporate tax rates are as follows:
| Type of Company | Chargeable Income (MYR) |
CIT Rate for Year of Assessment (%) 2020-2021 |
|---|---|---|
|
Resident Company (other than company described below) |
|
24 |
|
Resident Company:
|
On the first 600,000 |
17 |
|
In excess of 600,000 |
24 |
|
|
Non-resident company |
24 |
|
No, it is necessary to use a local entity abroad to comply with each country labor law.
Foreign companies can either set up a local entity in each country or use the services a local PEO (Professional Employment Organization) to hire the staff on-site directly.
The employer of record is the legal entity liable for the staff employed in a specific country. In practice, a foreign company can either open a subsidiary to become the employer of record of its abroad employees or use a PEO to act as the employer of record.
In general, 1-month is necessary to have an employee based out abroad using an existing PEO as the employe of record. When incorporating a new subsidiary to be the employer of record, the delay varies from 4-12 months.
Level 39, Marina Bay
Financial Centre Tower 2,
10 Marina Boulevard
Singapore 018983
