All About Offering Employee Benefits in Malaysia
Hire the best talent in Malaysia with the information you need to offer a competitive benefits package and stay compliant.
Required Benefits in Malaysia
Malaysian employees already receive essential employee benefits through the social security system, but offering extra perks can help businesses stand out and attract top talent. With Justworks, small businesses can access statutory benefits without the hassle of setting up an entity, saving time and resources. Let’s dive into the mandatory benefits employers must provide in Malaysia — plus extra perks that can give you a competitive edge.
Social Security
Malaysia’s social security system provides essential protections for employees through mandatory contributions. Employers and employees contribute to the Employees Provident Fund (EPF) for retirement savings, Social Security Organization (SOCSO) for workplace injury and invalidity coverage, and the Employment Insurance System (EIS) for unemployment benefits. Some employers must also contribute to the Human Resources Development Fund (HRDF) for employee training. These contributions ensure financial security, healthcare support, and job protection, forming the foundation of Malaysia’s labor welfare system.
Time Off
Paid annual leave is based on an employee’s length of service: eight days for one to two years, 12 days for two to five years, and 16 days for over five years with the same employer. This applies to employees covered under the Employment Act 1955 (earning ≤ RM 4,000/month), though many employers offer additional leave as an added benefit.
Offer Competitive Benefits
A robust employee benefits package can be a powerful recruitment tool. Consider incorporating the following benefits to attract the best talent.
Wellness Programs
Employers may offer wellness programs to promote employee health and well-being. This includes perks like gym membership stipends, wellness workshops, mental health support, and company-led initiatives to encourage healthy lifestyle choices.
Professional Development
Many Malaysian employers invest in professional development to enhance employee skills and retention. Companies may cover fees for job-related courses, workshops, or certifications in fields like IT, finance, or project management.
Transportation & Meal Allowance
In Malaysia, it’s common for employers to offer employees transportation and meal reimbursements to cover the cost of commuting and food consumed during the workday.
Ready to Offer Benefits in Malaysia?
Justworks makes building your global team seamless by helping you access benefits to attract top talent in Malaysia. Simplify international hiring today.
