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Malaysia has quietly become one of the most attractive countries for international hiring, with strong English proficiency, a deep tech talent pool, and highly competitive salaries. If you are planning to hire in Malaysia, there are important legal and regulatory requirements you must comply with.
An Employer of Record in Malaysia (EOR Malaysia) allows you to legally employ staff without setting up a local entity. By working with the best Employer of Record in Malaysia, you can outsource payroll, tax compliance, work permits, and HR administration while retaining full operational control of your team.
Quick Verdict: Best Employer of Record in Malaysia
Ø price p.m.
4.3/5
4.6/5
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4.3/5
4.5/5
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3.9/5
4.5/5
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4.5/5
4.2/5
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4.1/5
4.2/5
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3.4/5
4.6/5
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4.0/5
4.2/5
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3.8/5
4.3/5
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4.2/5
4.0/5
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4.1/5
3.9/5
Why You Can Trust Employsome’s Malaysia EOR Rankings
100% independent and unbiased.
Employsome is not owned by, affiliated with, or sponsored by any Employer of Record provider. We highlight both strengths and weaknesses so companies can make genuinely independent, well-informed hiring decisions.
Data-driven EOR scoring model.
Every provider is evaluated using our proprietary scoring framework, combining global EOR capabilities with how reliably each provider actually operates in Malaysia. This ensures rankings reflect real delivery quality – not marketing claims or sales promises.
Verified Malaysia EOR execution.
We independently validate each provider’s Malaysia setup, including owned entity versus partner models, compliance with Malaysian labour law, payroll execution, statutory EPF, SOCSO and EIS contributions, PCB income tax handling, and onboarding practices for both local hires and foreign employees.
Built by former EOR operators.
Employsome was founded by former EOR and global payroll operators who have managed large-scale hiring and expansion projects in Southeast Asia, including Malaysia. We know where EOR models succeed in Malaysia – and where compliance risks, partner dependencies, and operational gaps most often appear. Our mission is to bring transparency and experience-based insight to one of Asia’s fastest-growing EOR markets.
In-Depth Review: Top Employer of Record Providers in Malaysia
With more than 60 countries served, Playroll is an all-in-one EOR solution. It offers support with payroll, tax compliance, benefits, HR services, onboarding, and more. In particular, Playroll stands out for its detailed immigration support and work visa capabilities.
Global
Ø Fee per Employee per Month, First Year
✓ Global Coverage & Services (4.3/5): EOR coverage across approximately 60 countries, with strongest delivery in Europe, the UK, Canada, and selected APAC markets. Supports compliant employment contracts, payroll processing, statutory filings, terminations, and contractor hiring.
✓ Pricing & Transparency (4.0/5): Public country-level pricing typically ranges from USD 265–499 per employee/month with no setup fees. Mandatory deposits, FX spreads of around 2.5%, and early termination fees apply and increase total employment cost.
✓ Payment & Contract Terms (4.1/5): Playroll offers transparent EOR pricing and broad global coverage. However, short payment terms (net 7 days), a minimum contract commitment of six months, and additional fees (such as early termination and out-of-cycle payroll) may be restrictive. Contracts shorter than six months typically require paying the equivalent of three monthly EOR fees. Payroll cut-offs usually fall around the 10th of each month.
✓ Customer Experience & Support (4.7/5): Service-led model with dedicated account managers, structured onboarding and offboarding support, and typical first-response times within 24 hours.
✓ Platform & Integrations (4.4/5): Advanced platform with payroll automation, compliance workflows, cost calculators, misclassification assessment, and reporting dashboards. Native integrations are limited and there is no mobile app.
4.3/5
✓ Entity Ownership (5.0/5): Operates via Playroll Malaysia Sdn. Bhd., fully owned.
✓ Onboarding Speed (4.5/5): Efficient onboarding with no partner dependency.
✓ On-Site HR Support (4.5/5): Direct access to local HR and payroll teams.
✓ Visa & Work Permit Support (4.5/5): Strong support for work visas and complex cases.
✓ In-Country Compliance (4.6/5): Reliable handling of payroll tax, EPF, SOCSO, and statutory filings.
✓ Local Add-Ons (4.4/5): Benefits administration and compliance support available
4.6/5
Owned entity: No sub-contracting in Malaysia and most other popular EOR locations.
Easy onboarding and hiring process: Can hire employees on compliant Malaysian employment contracts within days.
Full pricing transparency: No hidden fees, all prices set out on public pricing page.
Locked in EOR contracts: Six-month minimum contract for EOR in Malaysia. This means you can be stuck with Playroll even where the EOR arrangement doesn’t work out.
Extra fees: While Playroll doesn’t hide its fees. It does charge currency conversion fees at a higher rate than many competitors.
Short payment terms: Terms require payment within 7 days which is quite short compared to some other providers.
Playroll is really an ideal option for just about any type of company. Because of its high level of compliance and payroll support, it is especially useful if you’re navigating difficult changes. For example, Playroll can help if you’re switching from a subsidiary to an EOR-style employment structure.
Previously known as Velocity Global, Pebl is known for its exceptionally fast onboarding process. With Pebl, you can onboard new hires in as little as 24 hours. Plus, it currently has offerings in 185 different countries, so you can easily scale your business and expand into new territories.
Global
Ø Fee per Employee per Month, First Year
- Strong global entity infrastructure
- Transparent (but high) pricing
✓ Global Coverage & Services (4.2/5): Leading global EOR coverage across core hiring markets with consistent, high-touch onboarding support. 65 own entity worldwide and 35 local partners. Well-suited for standard international hires, though invoicing and payroll complexity has been reported once companies operate across multiple markets.
✓ Pricing & Transparency (4.5/5): Clear and predictable pricing with good upfront cost visibility. Significant migration credits when transitioning from another EOR. Only downside: 3% FX markup & high bank wire fees.
✓ Payment & Contract Terms (4.2/5): Open-ended contracts without minimum commitments. Payroll cut-off on the 10th of each month with invoice issued on the 20th, payment due in 7 days. Standard, overall. If one commits to a one-year annual contract, then monthly fee drops to $599 instead of $699,
✓ Customer Experience & Support (4.3/5): 24h SLA in response times. Solid responsiveness for day-to-day operations, handled through off-shore support teams. No support offered via WhatsApp.Teams in 65+ countries, 43 languages spoken, with local experts who help you hire and support talent.
✓ Platform & Integrations (4.3/5): Modern platform designed to handle the basic EOR workflows. However, by far not as strong as its competitors. It feels Pebl is still playing “catch-up”. Integration ecosystem is solid but not as extensive as larger enterprise HR suites.
4.3/5
✓ Entity Ownership (5.0/5): Operates through an owned local entity called Velocity Global Malaysia Sdn. Bhd. (previous name of Pebl)
✓ Onboarding Speed (4.5/5): Fast onboarding with minimal friction.
✓ On-Site HR Support (4.5/5): Direct local HR and payroll team.
✓ Visa & Work Permit Support (4.0/5): Immigration coordination available.
✓ In-Country Compliance (4.5/5): Strong handling of EPF, SOCSO, and tax.
✓ Local Add-Ons (4.5/5): Benefits and compliant payroll execution.
4.5/5
Full global coverage. You only deal with Pebl if you have EOR employees in multiple locations.
Owned entity in Malaysia. Meaning you’re not at the whim of questionable sub-contractors.
Excellent technology integrations. Ensuring that Pebl fits seamlessly into your tech stack.
Onboarding. Some users report slower onboarding that some other providers.
Pricing transparency. Pebl does not disclose its prices publicly.
Reportedly high price. While prices are not disclosed, they appear to be much higher than some other providers in Malaysia.
Pebl is generally a good option for enterprise clients that need robust compliance, complex services, and integrated workflows. With their middling to high fees, they are well-positioned for this market segment.
GP Outsourcing Asia is local Malaysian outsourcing company providing Employer of Record as well as HR and payroll services for businesses hiring in Malaysia and the region. With local expertise across Malaysia, GP Outsourcing Asia helps companies scale quickly by supplying vetted remote teams, ensuring local compliance, and handling day-to-day HR and payroll operations. Their value proposition leans toward operational execution and hands-on support rather than heavy product automation, making them a pragmatic choice for teams that prioritise cost, local knowledge and responsive service.
Local
Ø fee per employee per month, first year
- Based in Kuala Lumpur
✓ Global Coverage & Services (2.9/5): Malaysia-focused EOR and BPO specialist offering strong local execution across payroll, compliance, HR operations, recruitment, work permit support, and shared services. Excellent depth in one market, but not built for multi-country or regional EOR consolidation.
✓ Pricing & Transparency (4.2/5): Among the most affordable EOR options in Malaysia, with publicly advertised pricing starting around USD 120 per employee/month. Flexible structuring for different company sizes, though full pricing details and add-ons (BPO, contact center, interpretation) require consultation.
✓ Payment & Contract Terms (4.0/5): Locally compliant Malaysian employment contracts with included work permit and Employment Pass support. Strong guidance on termination and statutory compliance, but processes are more manual and less standardized than SaaS-first global EORs.
✓ Customer Experience & Support (4.5/5): One of GP Outsourcing Asia’s key strengths – Malaysia-based HR, payroll, and legal teams with fast response times and strong local expertise. Excellent relationship-led support, though primarily regional rather than global in structure.
✓ Platform & Integrations (Not Scored): GP Outsourcing Asia operates as a service-led EOR and BPO provider without a proprietary software platform. To avoid penalising strong local specialists for not being SaaS vendors, platform capabilities are excluded from the score.
3.9/5
✓ Entity & Local Presence (5.0/5): Operates directly in Malaysia with established local HR, payroll, and legal teams – no partner hand-offs for core EOR services.
✓ Onboarding Speed (4.0/5): Fast setup for standard hires once documentation is complete. Slightly slower than SaaS-first EORs due to more manual workflows, but still reliable for market entry.
✓ On-Site HR Support (4.5/5): Strong, relationship-led support from Malaysia-based teams with easy access to senior stakeholders for complex cases.
✓ Work Permit & Immigration Support (4.5/5): Solid Employment Pass and work permit handling for foreign hires, suitable for most common hiring scenarios in Malaysia.
✓ In-Country Compliance (4.5/5): Excellent coverage of Malaysian labor law, including EPF, SOCSO, EIS, HRDF, tax remittance to LHDN, statutory leave, and termination processes.
✓ Local Add-Ons (4.2/5): Valuable extensions through BPO and shared services – payroll outsourcing, HR ops, recruitment, contact center services, and language interpretation – strong for companies building operational presence in Malaysia.
4.5/5
Local Malaysian provider: Expert in with local regulations
Bilingual Support: In English and Malaysian
Contact center solution: They have ready contact centers that you can utilize
Company set-up: Offer Malaysian company incorporation in case you want to scale beyond a certain size
Whatsapp support: Great service and prompt Whatsapp support available
No global coverage: Solely Malaysian provider in case you want to expand in multiple countries
No fancy tech platform: It is a service company and not self-serving platform
GP Outsourcing Asia is a great partner if you are only planning to hire in Malaysia. If you want to hire a team in Malaysia that want a point of contact to call on Whatsapp in Malaysian language, GP Outsourcing should be your choice. If you are planning to hire in many countries and would rather use a tech platform, other providers might be a better fit.
Deel excels at providing services to fast-growing companies in Malaysia and beyond. Throughout the world, the top-rated EOR provider is known for its ability to streamline operations, speed up global hiring, and ensure compliance in more than 150 countries. From a self-serve employee platform to convenient customer service, Deel takes international hiring to the next level.
Global
Ø Fee per Employee per Month, First Year
- Best tech platform
- Most chosen provider
✓ Global Coverage & Services (5.0/5): Deel provides EOR services in 150+ countries, operating through 120+ wholly owned legal entities (including Germany, UK, Spain, Australia, Canada, India, and UAE). Services include compliant employment contracts, payroll, statutory filings, terminations, country-specific benefits, immigration support, background checks, equipment provisioning via Deel IT, equity & stock option administration, and access to 200+ in-house legal experts covering local employment law.
✓ Pricing & Transparency (4.1/5): Public EOR pricing starts at USD 599 per employee/month (discounted to USD 499 in the first year in some markets). Contractor management is USD 49/month, and Deel HRIS is free. Security deposits of 1–3 months of gross salary apply in most countries. FX fees are borne by the transacting party. Optional add-ons (Deel Engage, Deel IT, time tracking) increase total cost as teams scale.
✓ Payment & Contract Terms (4.5/5): Deel offers month-to-month EOR contract flexibility with no long-term minimum commitment. Deposits are required in many countries and typically refunded within 60 days after contract termination. Payments are processed via regulated PSPs in multiple currencies. Deel Shield provides contractor misclassification protection covering up to USD 25,000 in legal costs per contractor.
✓ Customer Experience & Support (4.3/5): Deel provides 24/7 in-house chat support, with a 4.8/5 Trustpilot rating across 7,000+ reviews. Dedicated customer success managers are assigned to larger accounts. Payroll and compliance guidance is supported by Deel AI, with onboarding completed in 2–3 business days in many countries. Support is efficient but less white-glove for very small teams.
✓ Platform & Integrations (4.8/5): Deel offers a modern, self-service global HR platform with 120+ native integrations (including Workday, BambooHR, Personio, Greenhouse, QuickBooks, Xero, NetSuite, Slack, and Microsoft Teams). Supports bi-directional HRIS syncing, open API, Zapier automation, and can function as a standalone global HRIS with onboarding, PTO, documents, org charts, and compliance monitoring.
4.5/5
✓ Entity Ownership (4.5/5): Deel operates through its owned entity, Deel Malaysia Sdn. Bhd., allowing it to act as the direct Employer of Record without subcontractors and maintain full accountability for employment and payroll.
✓ Onboarding Speed (4.0/5): Onboarding is typically completed within 5–7 business days, depending on documentation and role complexity.
✓ On-Site HR Support (4.0/5): Local Malaysian team available for payroll and HR matters, complemented by 24/7 global support. Most interactions are handled remotely rather than through in-person support.
✓ Visa & Work Permit Support (4.0/5): Immigration and work permit assistance is available, though timelines depend on Malaysian authorities and role eligibility.
✓ In-Country Compliance (4.5/5): Strong compliance handling for Malaysian labor law, including statutory contributions (EPF, SOCSO, EIS), payroll tax, and compliant employment contracts.
✓ Local Add-Ons (4.0/5): Supports locally relevant benefits and pay structures, including region-specific allowances and 13th-month–style compensation where applicable. Benefit flexibility is solid but not highly customized.
4.2/5
Excellent employee benefits platform: Able to support your employees with both minimum statutory benefits and premium packages.
Owned entity in Malaysia: Hires your employees in Malaysia through its own subsidiary, meaning you don’t have to deal with subcontractors.
Excellent service: Customer support is available 24/7.
Market-leading HRIS: The Deel HR platform offers more services and optional extras than any other provider on the market.
Software-first: Some users have commented that the prominence of the Deel SaaS can make the service feel less personal, and the human support component can be missing.
Minimum contract period: One-year minimum commitment required as part of the EOR contract.
Deel is a good choice for companies that want to continue expanding into other international territories. Because of its fast hiring process, it is an excellent choice for businesses that want to scale quickly.
With its excellent on-the-ground capabilities, Safeguard Global is a leading EOR provider in Malaysia. From excellent customer support to a presence in more than 100 countries, Safeguard Global is poised to help your business take the next step in its long-term growth.
Global
Ø Fee per Employee per Month, First Year
✓ Global Coverage & Services (4.4/5): Coverage across 100+ countries via partner entities. Supports full EOR scope: compliant employment contracts, payroll, statutory filings, terminations, and HR advisory. Proven experience with large, multi-country enterprise rollouts. Partner-led delivery means execution quality varies by country.
✓ Pricing & Transparency (3.7/5): No public pricing. Fees provided after sales scoping. Pricing varies by country and partner. FX fees and local employer burden not always disclosed upfront, impacting cost predictability for procurement-led buyers.
✓ Payment & Contract Terms (4.5/5): Jurisdiction-specific, enterprise-grade contract templates. Clearly defined payroll cut-offs and payment timelines. Payroll pre-funding required in some countries. Additional administrative steps apply in ICP-heavy jurisdictions.
✓ Customer Experience & Support (4.2/5): Dedicated client success managers for enterprise accounts. Strong experience handling complex, multi-entity, and regulated environments. No unified 24/7 global support model; responsiveness depends on local partner execution.
✓ Platform & Integrations (3.9/5): Provides payroll reporting, time tracking, and document management. Not a full HRIS and not automation-first. Limited integrations compared to SaaS-led EORs like Deel, Rippling, or Oyster.
4.1/5
✓ Entity Ownership (5.0/5): Operates through two owned Malaysian entities – Safeguard Global Malaysia Sdn. Bhd. and Upside Professional Services (Malaysia) Sdn. Bhd. This provides full control, strong accountability, and eliminates reliance on subcontractors.
✓ Onboarding Speed (4.0/5): Onboarding is typically completed within 7–10 business days, aligned with local payroll, tax registration, and statutory setup requirements.
✓ On-Site HR Support (4.0/5): Strong local HR and payroll expertise with knowledgeable, Malaysia-based teams. Support is effective but primarily centralized rather than fully embedded on-site.
✓ Visa & Work Permit Support (4.0/5): Immigration coordination and advisory support available for standard work permit cases; not positioned as a specialist immigration provider.
✓ In-Country Compliance (4.5/5): Excellent handling of EPF, SOCSO, EIS, income tax, statutory leave, and termination compliance, backed by direct entity ownership.
✓ Local Add-Ons (3.5/5): Covers core statutory benefits and HR administration. Fewer flexible or premium add-ons compared to tech-first or benefits-heavy EORs.
4.2/5
Full global coverage: Support in all international locations, usually through its own infrastructure, including in Malaysia.
Broad service range: Not just an EOR, but a full expansion partner covering entity set up and business strategy.
Compliance: Able to comply with complex procurement/security requirements through its state-of-the-art platform.
Higher Pricing & Limited Transparency: No public pricing, variable partner costs, and FX fees not always clear upfront.
Support: According to some users, turnaround times can be slower than product-led providers.
If you’re looking for an enterprise-grade EOR or PEO, Safeguard Global can help. They offer an exceptional depth of in-country experience, which is ideal for a large business that is trying to enter the Malaysian marketplace.
People Lake is a Malaysia-based HR outsourcing and Employer of Record (EOR) provider offering payroll, HR administration, recruitment, and compliance support for companies hiring in Malaysia. Unlike global-first EOR platforms, People Lake operates as a local specialist, giving companies deeper on-the-ground expertise, hands-on HR support, and practical guidance through Malaysia’s regulatory landscape. Their service model is relationship-driven rather than software-driven, making them particularly attractive for businesses that value personal support and local HR knowledge over automation-heavy workflows.
Local
Ø fee per employee per month, first year
✓ Global Coverage & Services (2.8/5): Malaysia-focused EOR and HR outsourcing specialist with strong local execution across payroll, compliance, recruitment, Talent-on-Demand, and HR operations. Excellent depth in one market, but not designed for multi-country or regional EOR consolidation.
✓ Pricing & Transparency (3.7/5): Clear pricing once scope is defined, with flexible structuring for EOR and payroll outsourcing. No public benchmarks and add-ons require upfront clarification, which reduces predictability compared to SaaS-first global EORs.
✓ Payment & Contract Terms (4.0/5): Locally compliant Malaysian employment contracts with strong guidance on termination and statutory requirements. Processes are more manual and less standardized than tech-first providers, but legally sound and reliable.
✓ Customer Experience & Support (4.6/5): One of PeopleLake’s strongest areas – Malaysia-based HR and payroll teams with director-level involvement for complex cases. Highly responsive and relationship-led support, though limited to regional time zones.
✓ Platform & Integrations (Not Scored): PeopleLake operates as a service-led EOR without a proprietary software platform. To avoid penalising strong local specialists for not being SaaS vendors, platform capabilities are not included in the score.
3.8/5
✓ Entity Ownership (5.0/5): Operates through its own Malaysian legal entity, enabling direct employment, full compliance control, and zero reliance on third-party partners. This gives PeopleLake strong accountability and consistency in execution.
✓ Onboarding Speed (4.0/5): Employees are typically onboarded within 5–10 business days, including compliant contract issuance, statutory registrations (EPF, SOCSO, EIS, HRDF), and payroll setup. Timelines are reliable, though not as instant as fully automated global platforms.
✓ On-Site HR Support (5.0/5): PeopleLake provides true, on-the-ground HR and payroll support through its physical offices in Kuala Lumpur, Johor Bahru, and Penang, with regional coverage extended via its Singapore office. Clients benefit from face-to-face access to local HR specialists, director-level escalation for complex cases, and hands-on employee support – a level of in-country presence that most global EOR platforms cannot match.
✓ Visa & Work Permit Support (4.0/5): Solid guidance on Malaysian immigration processes and work permit coordination. While PeopleLake does not position itself as a pure immigration firm, support is practical and well-aligned with local requirements.
✓ In-Country Compliance (5.0/5): Outstanding knowledge of Malaysian labor law and statutory compliance – including EPF, SOCSO, EIS, HRDF, PCB tax deductions, leave entitlements, termination rules, and annual tax filings. One of PeopleLake’s strongest differentiators.
✓ Local Add-Ons & Flexibility (4.5/5): Very strong local service stack beyond EOR: Talent-on-Demand, payroll outsourcing, HR Ops, recruitment (IT, legal, executive), deliverables-based services, and corporate training. Excellent for companies needing a true full-service HR partner in Malaysia.
4.6/5
Strong on-the-ground Malaysian expertise: Deep understanding of local labor laws, statutory contributions (EPF, SOCSO, EIS), and payroll compliance.
White-glove support: Hands-on onboarding, direct HR guidance, and quick escalation paths compared to large global providers.
Flexible and customizable HR services: Able to adapt employment terms, HR policies, and payroll processes to local needs rather than standardized global templates.
No tech platform: Operate manually without automations
No global coverage: Services are only focused on Malaysia
No bulk onboardings: High-volume hiring might cause delays
People Lake is ideal for companies hiring one or a small number of employees in Malaysia who want local expertise, hands-on HR support, and high compliance accuracy. It is not suited for businesses looking for a global EOR partner, automation, or a modern HRIS-like experience. In short: choose People Lake if you prioritize local depth over global scale.
On top of its full EOR services, RemoFirst provides trusted contractor management support around the world. One of the biggest reasons it isn’t higher on this list is because it hires through a local partner, which slows down the hiring process and adds a layer of complexity to any customer support request. However, RemoFirst still delivers exceptional services, especially considering the low price point they target.
Global
Ø Fee per Employee per Month, First Year
- Low cost provider
- Extensive global coverage
✓ Global Coverage & Services (4.0/5): Broad global reach across 100+ countries delivered exclusively through a partner network rather than owned entities. Besides Papaya Global, no other EOR is operating like this. Based on our research, local partners selected by RemoFirst are strong (e.g. ThisWorks for Europe).
✓ Pricing & Transparency (4.5/5): One of the most transparent and affordable EOR pricing models on the market, with no setup or termination fees. However, pricing for mature markets such as Canada, UK, Germany or Spain are significantly higher (min. $399). Overall cost predictability remains a key strength.
✓ Payment & Contract Terms (4.0/5): Flexible contracts with no long-term commitments, fair payroll cut-off timelines, and support for multiple invoice and payout currencies (keep in mind that an FX markup may apply in this case).
✓ Customer Experience & Support (3.6/5): Startup- and SMB-friendly support model with dedicated account managers. Day-to-day support handled via ticketing system which is responsive, but complex cases and peak periods may see slower resolution since they rely on local partners’ response times.
✓ Platform & Integrations (4.0/5): Modern, intuitive platform with automated payroll workflows. However, advanced reporting, integrations to enterprise HCMs, and customization for complex organizational structures are more limited than with larger, enterprise-grade EORs.
4.0/5
✗ Entity Ownership (3.5/5): RemoFirst operates through a vetted local partner in Malaysia rather than an owned entity. Partner has established presence and Malaysian employment expertise.
✓ Onboarding Speed (4.5/5): Fast onboarding through RemoFirst’s streamlined platform. Same-day onboarding available with efficient contract generation.
✓ On-Site HR Support (4.0/5): Local Malaysian partner handles employment operations. Support coordinated through dedicated account managers with 24/5 availability.
✓ Visa & Work Permit Support (4.0/5): Work permit support available for Malaysia. RemoFirst offers visa services in 85+ countries. Partner navigates Malaysian expatriate employment requirements.
✓ In-Country Compliance (4.5/5): Strong compliance coverage for Malaysian labor laws including EPF retirement contributions (employer 12-13%), SOCSO/EIS social insurance, and monthly payroll processing.
✓ Local Add-Ons (4.5/5): Supports Malaysian statutory benefits including EPF (Employees Provident Fund), SOCSO, and EIS. Can administer private medical insurance (common market practice), group hospitalization coverage, dental and optical benefits, mobile phone allowances, parking allowances, and annual bonuses. EPF contributions above statutory minimum offer tax relief for employees. Equipment provisioning available.
4.2/5
Exceptionally Low Price: Beginning at $199 per employee per month.
Excellent Customer Support: With staff available to support you on-location with any problems.
Easy-to-use Interface: Effective EOR software without the ‘bells and whistles’ (and associated price tag) of some other providers.
No Entity: RemoFirst operates through an in-country partner (ICP) in Malaysia, which means if anything goes wrong, you deal with both RemoFirst and their sub-contractor
Limited Add-Ons: RemoFirst offers a straightforward EOR service, but without many of the add-on services of some of the more premium providers like Deel.
‘Hidden’ Costs: RemoFirst charges a relatively high foreign exchange fee of 2%.
Thanks to their strong focus on keeping prices low, RemoFirst is an excellent option for cost-conscious companies and startups.
Globalization Partners (G-P) is a solid choice for an EOR provider. For a higher price, you will get a white-glove service paired with a solid tech platform. With its award-winning, AI-powered services, it makes expanding into new countries as easy as possible. Currently, G-P can be found in more than 180 countries around the world.
Global
Ø Fee per Employee per Month, First Year
- White-glove service
- Enterprise-grade software
✓ Global Coverage & Services (4.5/5): EOR services across 125+ countries, covering compliant employment contracts, payroll processing, statutory filings, terminations, and benefits administration. Supports contractor management (USD 39/month per contractor), global payroll, immigration and visa services, insurance and pension support, background checks, equipment procurement, and equity & stock option administration.
✓ Pricing & Transparency (3.0/5): EOR pricing typically ranges around USD 940 per employee/month plus a one-time setup fee of USD 2,820. Security deposits of 1–2.5 months of total employment cost apply depending on credit checks. FX markup estimated at ~3%. Pricing is sales-led only, with no public or self-serve country-level cost breakdowns.
✓ Payment & Contract Terms (3.0/5): Enterprise-leaning contract structures, often requiring longer minimum commitments (up to 12 months). Invoices are issued around the 15th of the month with net-7 payment terms. Late payments incur 5% interest. Offboarding fees of USD 1,000 may apply. Contracts are standardized, compliance-driven, and relatively rigid.
✓ Customer Experience & Support (4.5/5): Enterprise-grade, consultative support model with dedicated account managers, live chat (≈2-minute first response), phone support, onboarding and termination assistance, compliance alerts, and AI-supported guidance. Strong depth across HR, legal, and compliance topics.
✓ Platform & Integrations (4.0/5): Stable enterprise platform covering payroll, employment documents, time-off, expenses, reporting, and compliance workflows. Includes G-P Assist AI. SOC 2 and ISO 27001 certified. Integrations available with major HRIS/HCM systems (Workday, SAP SuccessFactors, UKG, BambooHR, HiBob). Reliable, but less automation-heavy than newer tech-first platforms.
3.8/5
✓ Entity Ownership (5/5): G-P operates through its owned entity, Globalization Partners (Malaysia) Sdn. Bhd., enabling direct employment and a higher level of support without middleman delays.
✓ Onboarding Speed (4.5/5): Fast onboarding once start date and compensation are confirmed. G-P can quickly set up compliant employment contracts for new hires.
✓ On-Site HR Support (4.5/5): Locally based team of EOR experts provides instant support. Deep understanding of Malaysian employment laws ensures smooth operations.
✓ Visa & Work Permit Support (4.0/5): Support available for foreign worker permits. Malaysia has specific requirements for expatriate employment that G-P can navigate, though processing times vary.
✓ In-Country Compliance (4.5/5): Handles EPF retirement contributions, SOCSO/EIS social insurance, monthly payroll processing, and required filings. Helps avoid compliance surprises with rigorous EOR support.
✓ Local Add-Ons (3.5/5): Supports statutory benefits and standard local packages. Benefit customisation options may be more limited compared to some regional specialists.
4.3/5
Owned infrastructure. Employs your staff in Malaysia through its own subsidiary.
Seasoned provider. One of the original EORs (started in 2012), with a well-deserved reputation for compliance and white glove service.
Compliance. Ensures compliant hiring and payroll in Malaysia and across the world.
Higher prices than value competitors. For companies on a budget, other providers like RemoFirst or Native Teams may be the better option.
Platform quality. Arguably the G-P platform is not as sophisticated as some other premium providers like Deel or Pebl.
G-P is best for mid-market players or higher who want structured support, excellent compliance and are ok to pay a higher price for it. Especially, US based companies prefer G-P’s service as they have a big US-based team.
With a strong base in more than 120 countries and excellent services in the Asia-Pacific region, Multiplier stands out as a top choice for a Malaysian EOR. While there are other companies on this list with lower prices or more comprehensive tech options, Multiplier rates well for its compliance with local employment laws and tax regulations.
Global
Ø Fee per Employee per Month, First Year
✓ Global Coverage & Services (4.4/5): EOR services across 120+ countries, including contractor management, global payroll outsourcing, statutory compliance, benefits administration, and immigration support in selected jurisdictions.
✓ Pricing & Transparency (4.0/5): Generally clear pricing and competitive for scaleups at $505 per EOR contractor, though FX markups apply (stated ~2%, reported higher in some cases) and country-level cost breakdowns are not always fully transparent upfront.
✓ Payment & Contract Terms (4.0/5): No minimum contract commitment and flexible agreements. However, invoices are issued early and short payment windows (often ~7 days) can impact cash flow.
✓ Customer Experience & Support (4.3/5): Improved support quality in recent years with a solid self-service knowledge base. Support experience and escalation handling can vary by region.
✓ Platform & Integrations (4.5/5): Strong, modern platform with clean UX, efficient onboarding, and good multi-country reporting. Integration depth and automation are slightly behind top tech-first EORs.
4.2/5
✓ Entity Ownership (3.5/5): Operates through a local partner entity rather than a fully owned Malaysian subsidiary. The partner setup is compliant but reduces direct operational control.
✓ Onboarding Speed (4.5/5): Fast onboarding, typically completed within 5–7 business days once employee documentation is finalized.
✓ On-Site HR Support (4.0/5): Local HR and payroll coordination available through in-country partners. Support is reliable for day-to-day operations but less hands-on than owned-entity providers.
✓ Visa & Work Permit Support (4.0/5): Supports Employment Pass applications and renewals, including coordination with immigration authorities. Timelines depend on role seniority and government processing.
✓ In-Country Compliance (4.5/5): Strong compliance handling across EPF, SOCSO, EIS, tax withholding, statutory leave, and termination requirements under Malaysian labor law.
✓ Local Add-Ons (3.5/5): Standard statutory benefits supported; limited flexibility for advanced benefits, allowances, or bespoke compensation structures.
4.0/5
Same-day hiring: Fast to onboard employees and get them setup for payroll.
Owned entity: Operates through its own Malaysian subsidiary so you’re not subject to unreliable subcontractors or ICPs.
Asia-pacific focus: Founded in the Singapore, Multiplier has deep local expertise on Malaysia specific employment law.
Limited tech integrations and software option: Doesn’t have the same range as some other platforms like Deel or Pebl.
Multiplier is an exceptional EOR for companies that want same-day hiring. They are ideal for international companies that need help with global payroll processing and aren’t worried about having a high-tech platform.
From a 24-hour onboarding process to localized benefits, Teamed can help companies quickly set up their on-the-ground workforce in Malaysia. From holidays to pensions, Teamed offers the type of employment benefits that top talent looks for in an employer. Plus, the EOR provider’s presence in more than 180 countries means it is fully prepared to support your company’s long-term growth.
Global
Ø Fee per Employee per Month, First Year
✓ Global Coverage & Services (3.9/5): Teamed provides EOR services in ~40 countries, primarily through in-country partner model . Coverage is focused on core hiring markets, with execution quality depending on local partners. Service breadth is narrower than large global EOR providers.
✓ Pricing & Transparency (4.0/5): Pricing is provided upfront after consultation. Average pricing is ~$540 per employee/month, with no setup fee, no VAT, and mostly no FX markup. A security deposit equal to one month of total employment cost applies.
✓ Payment & Contract Terms (4.2/5): No minimum commitment. Standard notice periods apply (e.g. 60 days in the Netherlands). Invoices are issued around the 17th of the month with 7-day net payment terms. Payroll cut-off is typically the 10th of the month. Late payment interest applies at 4% p.a..
✓ Customer Experience & Support (4.4/5): White-glove, service-led model with dedicated account managers, phone support, onboarding and termination assistance, and typical first response times within 24 hours. Support quality is a core strength.
✓ Platform & Integrations (4.0/5): Provides core HRIS functionality including contracts, time off, expenses, cost calculators, and reporting dashboards. Lacks mobile apps, zero-touch onboarding, and native HRIS/ATS/accounting integrations.
4.1/5
✓ Entity Ownership (4.0/5): Local entity or tightly managed partner structure.
✓ Onboarding Speed (4.0/5): Standard onboarding timelines dependent on documentation readiness.
✓ On-Site HR Support (4.0/5): Solid payroll and HR support for Malaysian employment.
✓ Visa & Work Permit Support (3.5/5): Advisory immigration support available.
✓ In-Country Compliance (4.5/5): Reliable compliance with EPF, SOCSO, EIS, and payroll tax requirements.
✓ Local Add-Ons (4.0/5): Statutory benefits administration and payroll-only services.
3.9/5
Excellent Customer Support: While all EORs say it, Teamed actually mean it with a commitment to top-notch customer support.
Transparent Pricing and Terms: No hidden fees or ‘gotchas’ in the terms and conditions.
Additional Expansion Services: Support with company incorporation for businesses that seek to move out of the EOR space.
Payroll Inflexibility: No off-cycle payments
More Limited Platform: No software integrations
Lack of Extensive Owned Infrastructure: Likely uses a local partner instead of an owned entity (undisclosed).
Teamed is a good solution for small- and medium-sized businesses that are just starting to take off in Malaysia. However, considering there is limited information available about its work visa process, Teamed is better suited for companies that want to hire local workers.
Key Considerations When Choosing the Best Employer of Record in Malaysia
At Employsome, we don’t rank Employer of Record providers based on marketing claims, sales promises, or headline country counts. Every provider is evaluated using our two-layer scoring model, combining global EOR capabilities with real on-the-ground performance in Malaysia – where most compliance, payroll, and employment risk actually occurs.
Final rankings are calculated using a weighted methodology (40% Global EOR Score, 60% Malaysia EOR Score) to ensure our results reflect how reliably each provider operates inside Malaysia, not how well they market themselves.
🌍 Global EOR Score
A Global EOR Scorecard rates providers on international capabilities such as:
- Global Coverage & Services: Many companies do not want to hire only in a single country but search for a global partner for international hiring. This includes entity coverage, consistency of service across countries, onboarding quality, and depth of local employment law expertise. Providers with strong multi-country execution score higher than those with uneven regional delivery.
- Pricing & Transparency: We evaluate how clear and predictable pricing really is – looking beyond headline fees to uncover hidden costs such as FX markups, off-cycle payroll fees, early termination charges, deposits, and admin add-ons. Transparent, easy-to-budget pricing scores highest.
- Payment & Contract Terms: We review the fine print of service agreements and employment contracts, including payment timelines, payroll cut-offs, refund policies, termination terms, and flexibility of commitments. Providers with fair, flexible, and clearly structured terms score better.
- Customer Experience & Support: We analyze the level of operational support customers can expect – including response times, escalation quality, availability of in-country experts, and real labour-law guidance. Strong local support and consistent service across regions drive higher scores.
- Platform & Integrations: We look beyond human support to evaluate the technology stack: HRIS capabilities, automation, reporting, self-service workflows, and integrations with payroll, accounting, and HR tools. Modern, well-integrated platforms score higher than service-only setups.
🇲🇾 Malaysia EOR Score
A Malaysia EOR Score focuses on how an EOR operates locally within Malaysia across the following six critical dimensions:
- Owned Entity vs. Local Partner: When searching for the best EOR in Malaysia, start by reviewing whether the company is an owned entity or not. Some EOR providers contract their services out to a local partner. This means the EOR’s services are only as good as the service quality of their local partner. With an owned entity, you don’t have to deal with a middleman whenever you need help. In turn, this ensures a timelier response and better customer service.
- Onboarding Speed: Some companies want to hire employees as fast as possible. We analyze how long it takes for the EOR provider to onboard your employee in Malaysia.
- On-Site HR Support: Do you prefer speaking with an AI chatbot or do you want to call a support agent in Malay with local labour law expertise? We analyze the level of support EOR providers offer in Malaysia.
- Visa & Work Permit Sponsoring: Not all EOR providers can hire foreigners in Malaysia. We analyze who can actually support providers with an Employment Pass (EP) in Malaysia.
- In-Country Compliance: We analyze if EOR providers are 100% compliant and follow all local labour laws.
- Local Add-Ons: Many companies want to offer local add-ons like EPF, employment insurances, and private medical add-ons to their employees.
How EORs in Malaysia Work
When hiring a Malaysian EOR, it’s essential to find the right partner. There is a risk that Malaysian authorities may view you as a co-employer if your EOR doesn’t handle the paperwork properly. Additionally, there are highly specific rules involved in hiring foreigners, so you should be proactive about finding an EOR with experience setting up work visas and handling immigration documents.
Under the Employment Act of 1955 and its 2022 amendments, there are strict employer obligations involved in any hiring decision. If the paperwork isn’t handled properly, the EOR and the client company can both be liable.
Malaysia has specific restrictions surrounding work visas. The EOR must be in full compliance with the Immigration Department of Malaysia and the Ministry of Human Resources (MOHR). As long as work visas are issued correctly, you can legally hire foreign workers using your EOR.
Note also that due to the ban on Singapore EORs sponsoring work visas, it is becoming increasingly common for Malaysia EORs to hire employees who may have otherwise been hired in Singapore. Any clients involved in these kinds of situations need to check carefully that the proposed employment is compliant.
The EOR in Malaysia is technically the worker’s legal employer. As a result, they are responsible for navigating payroll, statutory benefits, and legal compliance.
For example, Malaysian EORs are in charge of registering the employee and making legally required contributions.
- Employees Provident Fund (EPF)
- Social Security Organization (SOCSO)
- Employment Insurance System (EIS)
Additionally, employers must deduct the monthly tax deduction (PCB) from the worker’s wages.
As the employer of record, the EOR handles all the paperwork for the employee. This means that they are typically in charge of onboarding, filling out work visas, processing payroll, and ensuring the employee’s paperwork is in compliance with local laws. Meanwhile, you get to continue to manage the worker’s day-to-day activities.
Hiring in Malaysia: What You Need To Know
From holiday entitlements to work visa rules, there are many different requirements that Malaysian employers need to follow. By partnering with an experienced EOR provider, you can ensure your company is in compliance with all of the nation’s laws. As an employer, there are a few things you should know before you hire your first worker in Malaysia.
Legislation Around Employer of Record
The Employment Act of 1955 and its 2022 update govern all regular employees and employers of record in Malaysia. While the original law focused on Peninsular Malaysia, the 2022 update made it so that most of the provisions applied to Peninsular Malaysia and East Malaysia. Thanks to this and other employment laws, using an employer of record is a completely legal, accepted practice in Malaysia.
An experienced EOR can also help you apply for work visas, such as the Employment Pass visa for skilled foreign professionals. However, there are specific rules that must be followed, so it’s essential to work with a knowledgeable EOR provider. While there are some exceptions, Malaysian law strongly pushes for the actual employer to sponsor visas. As a result, it is especially important to work with an EOR provider that has a lot of on-the-ground experience with visa processing.
Holiday Pay & Working Hours
Depending on which state you’re in, there are 11 public holidays as well as several ad-hoc holidays each year. Typically, this means that there are around 12 to 13 holidays you must let workers take off. If the holiday happens to fall on a day of rest, then the following day is taken off from work. Employees who work the holiday must be given holiday pay as well as double their normal pay for working the holiday, which effectively works out to triple their normal pay rate.
Under Malaysian law, employees are also allotted a specific number of leave days per year based on the number of years of experience that they have with a company.
- Less Than 2 Years: 8 days
- Between 2 and 5 Years: 12 days
- 5 Years or More: 16 days
Malaysia also has legal limits to how much employees can work each week. In a normal week, employees can work 8 hours a day and 45 hours a week. If they go over this amount, they must be compensated with 1.5 times their normal pay.
Sign-On Bonuses and 13th-Month Pay in Malaysia
In Malaysia, sign-on bonuses and annual (13th-month) bonuses are taxed under the country’s personal income tax system. Annual bonuses are fairly common, especially at large or lucrative companies.
Employment Contracts in Malaysia
A typical employment contract in Malaysia will include a few important details.
- Employee name
- Employer’s name
- Working hours
- Salary
- Fixed deductions
- Any allowances, such as transportation or housing
- Overtime rate
- Termination conditions and provisions
- Salary pay schedule
- Leave entitlements
- Health insurance and other benefits
- Bonuses
Mandatory Health Insurance in Malaysia
While Malaysia doesn’t require employers to provide workers with mandatory health insurance, employers are strongly encouraged to offer health insurance anyway. Because so many other employers offer health insurance, you need to provide this benefit to remain competitive.
Although you don’t have to offer health insurance to local workers, you do have to set it up for foreign employees. The Foreign Worker Hospitalisation and Surgical Insurance Scheme (SPIKPA) was set up to reduce the costs of medical expenses for employers and employees. Typically, the contribution is deducted from the employee’s paycheck, but there are a few industries where the employer is responsible for contributions. Because of this, it’s important to work with an EOR provider that understands when the employer, employee, or both must contribute to this type of insurance.
Sick Leave Compliance
In Malaysia, mandatory sick leave provisions are based on how long the employee has worked with your company.
- Less Than 2 Years: 14 sick days per year
- 2 to 5 Years: 18 sick days per year
- 5 or More Years: 22 sick days per year
Taxation & Payroll in Malaysia
As the worker’s legal employer, the EOR is responsible for processing payroll and withholding taxes. For example, Malaysian EORs are in charge of registering and contributing to:
- Employees Provident Fund (EPF): This fund is for retirement savings. The employer contribution typically makes up 12% to 13% of the worker’s wages.
- Social Security Organization (SOCSO): This fund covers social security protections, such as coverage for workplace injuries.
- Employment Insurance System (EIS): EIS provides unemployment coverage for workers and helps them develop new skills if they can no longer find work in the same industry.
- Human Resources Development Fund (HRDF): This fund requires contributions worth 1% of the worker’s wages, but it is only applicable for a select number of industries.
- Deduct the monthly tax deduction (PCB) from the worker’s wages.
Choose the Best Malaysia Employer of Record
By working with an EOR provider in Malaysia, you can simplify your company’s expansion process. EORs can help you onboard new employees in as little as 24 hours. Once the worker is officially hired, the EOR provider can help you process payroll, set up employee benefits, and contribute to Malaysia’s social security fund.
Whether you want to hire local talent or bring your international team into the country, the best Malaysian EOR can streamline the entire process. They offer scalable solutions, so your EOR services grow as your company grows as well. From getting help with global payroll processing to administering your company’s health insurance plan, a top-rated EOR provider can help with all of your company’s administrative needs.
Learn more about hiring workers in Malaysia by reaching out to our EOR experts today.
Frequently Asked Questions (FAQs)
An Employer of Record (EOR) in Malaysia becomes the legal employer on your behalf and handles all compliance tasks, including payroll, EPF, SOCSO/PERKESO, EIS registrations, tax withholding (PCB), employment contracts, benefits, and adherence to Malaysia’s Employment Act. The EOR manages statutory obligations while you manage day-to-day work.
Setting up a Malaysian company (Sdn. Bhd. or foreign-owned entity) typically takes 4–8 weeks and must comply with capital requirements, local director rules, and ongoing payroll and tax filings. A foreign-owned entity may also face minimum paid-up capital requirements, depending on the business activities.
An EOR lets you hire talent within days without setting up an entity, meeting capital rules, or dealing with EPF/SOCSO compliance.
Most EOR providers onboard Malaysian employees in 3–7 business days, depending on documentation completeness. Immigration cases take longer due to Employment Pass (EP) processing.
Yes, some EORs can sponsor the Employment Pass (EP) through their own Malaysian entity. However, not all providers are eligible. Immigration rules depend on salary thresholds, job category, and the employer’s registration with the Expatriate Services Division (ESD). Always verify if the EOR can legally sponsor EPs before hiring foreign talent.
Malaysia has a structured termination process requiring:
- Just cause and justification
- Proper notice periods
- Potential Domestic Inquiry (DI) for misconduct cases
- Severance payouts depending on tenure
A strong EOR will guide employers through compliant procedures to reduce unfair dismissal risks.
Typical EOR hires include:
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Software engineers
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Sales and business development roles
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Customer support
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Marketing and operations
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Country managers and first-in-market hiresMalaysia is a popular regional hub, making EOR ideal for small and mid-sized teams entering the market.
Yes. Salaries are typically paid in MYR, but many EORs support multi-currency billing (USD, EUR, SGD) while ensuring statutory deductions remain compliant at local levels.
Employer costs typically include:
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EPF: 12–13%
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SOCSO: ~1.75%
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EIS: 0.2%
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Medical insurance premiums (if provided)
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EOR service fee
A good EOR will break down statutory costs clearly before hiring.
Written by
Dane Cobain is a Copywriter at Employsome and an accomplished author whose work spans fiction, non-fiction, and professional writing. Over the past decade, he has built a strong track record creating straightforward content for the HR, payroll, and corporate sectors. Dane brings a storyteller’s eye to the evolving world of global employment, with a particular focus on Employer of Record and PEO models. His articles explore industry trends and dedicated Best Of Guides when managing an international workforce.
Our content is created for informational purposes only and is not intended to provide any legal, tax, accounting, or financial advice. Please obtain separate advice from industry-specific professionals who may better understand your business’s needs. Read our Editorial Guidelines for further information on how our content is created.