Payroll & Human Resource

Payroll and human resource management in Malaysia are governed by various laws and regulations, including the Employment Act 1955, the Industrial Relations Act 1967, the Minimum Wages Order 2020, and the Employees Provident Fund Act 1991, among others. These regulations set forth guidelines related to employment contracts, working hours, wages, benefits, and termination procedures.

In Malaysia, employers are required to provide written employment contracts to employees, outlining terms and conditions of employment, including job responsibilities, compensation, benefits, and working hours. Employment contracts must comply with statutory requirements and may vary based on factors such as employment type, duration, and nature of work.

Minimum Wage

Malaysian employers are obligated to pay employees wages in accordance with the Minimum Wages Order, which sets minimum wage rates for different sectors and regions. In addition to basic wages, employers may provide various benefits to employees, such as bonuses, allowances, medical insurance, and retirement benefits.

Payroll Administration

Payroll administration involves the calculation, processing, and disbursement of employee salaries and benefits. Employers must deduct statutory contributions, such as Employees Provident Fund (EPF) contributions, Social Security Organization (SOCSO) contributions, Employment Insurance System (EIS) and income tax deductions, from employee wages in compliance with regulatory requirements.

1. Employee Provident Fund (EPF): The EPF is a compulsory retirement savings scheme in Malaysia, where both employers and employees contribute a percentage of the employee’s monthly salary to the EPF fund. Employers are responsible for deducting EPF contributions from employee wages and remitting these contributions to the EPF board on a monthly basis.
2. Social Security Organization (SOCSO): SOCSO provides social security protection to employees in the event of work-related injuries, disabilities, or death. Employers are required to register with SOCSO and contribute to the Social Security Fund on behalf of their employees.
3. Employment Insurance System (EIS): The Employment Insurance System (EIS) is a social security initiative in Malaysia aimed at providing financial protection and assistance to employees who have lost their jobs involuntarily. Similar to the Social Security Organization (SOCSO), which provides coverage for work-related injuries, disabilities, or death, the EIS focuses on supporting employees during periods of unemployment.
4. Taxation: Employers must deduct income tax from employee salaries based on the prevailing tax rates and submit tax deductions to the Inland Revenue Board (IRB) on a monthly basis. Employers are also required to issue annual tax statements (Form EA/Form E) to employees for tax filing purposes.

Human Resource Management (HRM)

Human resource management encompasses various functions related to employee recruitment, selection, training, performance evaluation, and employee relations. HRM practices in Malaysia focus on talent acquisition, employee development, succession planning, and fostering a positive work culture.

1. Labor Relations and Dispute Resolution: Employers in Malaysia must comply with labor laws and regulations governing employee-employer relations, collective bargaining, and dispute resolution mechanisms. The Industrial Relations Department facilitates the resolution of labor disputes through conciliation, mediation, and arbitration processes.
2. Compliance and Record-Keeping: Employers are required to maintain accurate payroll records, employment contracts, attendance records, and other relevant documents in compliance with regulatory requirements. Failure to comply with labor laws and regulations may result in penalties, fines, or legal liabilities for employers.

Our services include:

• Preparation of Employment Handbook
• Preparation of Employment Contract
• Preparation of Company HR Policies and letters
• Calculation of Payroll such as salaries, overtimes, commission and etc.
• Preparation of monthly payroll statements