10 Best Employer of Record (EOR) in Malaysia in 2025
Explore the leading EOR companies in Malaysia that help global businesses hire employees locally, manage payroll, and stay fully compliant with Malaysian labor laws.
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Top Employer of Record in Malaysia Quick Comparison
Before we check the list of top Employer of Record in Malaysia , here's a quick view of top solutions that you may use. Get on with our detailed list of products below in the article.
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Top Employer of Record in Malaysia Overview
Malaysia has quietly become one of Southeast Asia’s most attractive destinations for international hiring. Its diverse talent pool, multilingual workforce, and strong business infrastructure make it a natural choice for companies setting up regional teams.
Add to that its stable economy, modern digital ecosystem, and strategic location between Singapore and Thailand, and you get a market that’s both affordable and globally connected.
Still, hiring directly in Malaysia isn’t always simple. Employment regulations differ across states, payroll compliance can get detailed, and foreign companies must establish a legal entity before hiring full-time staff.
That’s where Employer of Record (EOR) services come in. An EOR acts as the legal employer on your behalf, managing local compliance, drafting compliant employment contracts, handling payroll, taxes, benefits, and statutory contributions like EPF and SOCSO. You get to build your team in Malaysia quickly without setting up a legal entity.
This guide will help you understand how EORs work in Malaysia, what they typically cost, the key employment rules to keep in mind, and which providers offer the most reliable support for hiring locally.
Quick Fact:
Malaysia is home to over 16 million working professionals, with English proficiency ranking among the highest in Asia, making it ideal for remote and cross-border teams.
Key Facts for Hiring in Malaysia
Detail
Information
Country Capital
Kuala Lumpur
Official Language
Malay (Bahasa Malaysia); English widely used in business
EOR Price Range
$250 – $700 USD per employee per month
Average Onboarding Time (via EOR)
5 – 10 business days
Official Currency
Malaysian Ringgit (MYR)
Standard Working Hours
40 – 48 hours per week (8 hours per day)
Public Holidays
Around 14 public holidays per year (varies by state)
Paid Annual Leave
8 – 16 days per year depending on years of service
Deel is a well-recognized all-in-one HR solution catering to global teams, simplifying the complexities of international workforce management (complete EOR solution). This advanced platform is apt at handling onboarding, payroll, and compliance processes seamlessly.
Why we picked Deel:
Deel is known for precision. It simplifies the messy parts of global hiring without hiding the details. In Malaysia, it’s fast, onboarding takes days, not weeks, and payroll runs like clockwork. We included it because it scales beautifully; you can start small and keep growing without ever needing a new system.
Remofirst is an all-in-one global HR platform & Employer Of Record solution that is designed to hire remote employees from anywhere around the world with just a single click. It offers payroll solution, workforce management, global contractors management, background check of employees and more.
Why we picked RemoFirst:
RemoFirst keeps things refreshingly direct. It strips away the noise, no unnecessary software layers or marketing fluff, and focuses on payroll, contracts, and support. The team is quick to respond and genuinely attentive. If you prefer reliability over features you’ll never use, RemoFirst fits that bill.
Multiplier is an emerging global employment platform that enables organizations to seamlessly employ and manage international freelancers, workers, and contractors. It's a complete Employer of Record (EOR) solution, payroll management, employee onboarding and offers other related features.
Why we picked Multiplier:
Multiplier’s strength lies in its regional DNA. It’s built in Asia, not just serving it remotely. That familiarity shows in how it handles Malaysian hiring, the contracts, the filings, the tone of support. Nothing feels off-the-shelf. For companies expanding across ASEAN, that local fluency saves time and avoids missteps you’d never see coming from abroad.
Oyster HR is an advanced cloud-based human resources management and employer-of-record solution that offers a comprehensive solution for payroll management, benefits, time and attendance, and various HR functions. The software provides a user-friendly and intuitive interface, ensuring a seamless experience for both HR administrators and employees.
Why we picked Oyster:
Oyster puts people at the center of the EOR process. It’s thoughtful about fairness, benefits, and employee communication. In Malaysia, that translates into smoother onboarding and better retention because local hires actually feel cared for. It’s a platform built for companies that value relationships, not just transactions.
Pebl allows businesses to compliantly hire, pay, and manage employees across the globe using a single platform that simplifies the complexities of cross-border payroll, compliance, and benefits administration. The company’s cloud-based global work platform offers core features such as centralized employee records, global payroll processing in over 100 currencies.
Why we picked Pebl:
Pebl feels different from the big platforms. It’s regional, responsive, and far more personal in how it works with clients. You get real people guiding you through the maze of Malaysian compliance, not canned responses. It’s a smart pick for smaller teams or founders who want an EOR that feels like a local partner, not a portal.
Rippling is a renowned workforce management software that is designed to assist organizations to manage HR, Finance and IT from a single dashboard. It offers onboarding, offboarding, complete payroll, Employer of record solutions to streamline your processes. Rippling is a one-stop solution for recruiting, managing employee data, performance management, time and attendance tracking, headcount planning, employee learning management and more.
Why we picked Rippling:
Rippling takes a broader view of global employment. It doesn’t just run payroll; it connects HR, IT, and finance under one roof. For a company building distributed teams across markets, that integration removes a lot of friction. The Malaysian setup is polished, but what stands out most is the visibility it gives you, every piece of the process, in one place.
Remote.com is a leading global HR & EOR platform that helps organizations hire, manage, and pay their entire global team seamlessly. With Remote, businesses can hire any employee from any country which further helps them to unlock a pool of talent. It can handle compliance, benefits, payroll, and taxes in countries where you don't have an entity.
Why we picked Remote:
Remote’s reputation is well earned. It runs its own Malaysian entity, which means cleaner compliance and faster turnaround. The platform’s design is intuitive, the kind you don’t think about once you start using it. Everything just works, from contracts to benefits to payroll reports, without hidden steps or odd requirements.
Papaya Global is a cloud-based workforce management platform designed to simplify global payroll, HR, and compliance. Built for companies hiring across borders, it offers powerful features like automated payroll in 160+ countries, Employer of Record (EOR) services, contractor management, and immigration support. The platform also includes tools for onboarding, PTO tracking, document management, and real-time HR analytics.
Why we picked Papaya Global:
Papaya is built for complexity. It handles large-scale, multi-country payroll operations without getting tangled in them. Its infrastructure is enterprise-level, but it still feels approachable. For global teams expanding across Asia, Papaya offers the kind of consistency that only comes from experience and scale.
Horizons' is a cloud-based global employment platform, which streamlines onboarding, payroll, benefits administration, and people management across borders. The platform allows easy cross-border workflow management and complies with different country-specific regulations. You may use this platform to hire and manage employees in over 180 countries.
Why we picked Horizons:
Horizons brings experience and context. They’ve been operating across Southeast Asia for years, which shows in their grasp of local employment laws and business culture. It’s not about speed with them; it’s about steadiness. For companies planning to build a real presence in Malaysia, Horizons offers that dependable, long-term footing.
Safeguard Global company helps businesses navigate the intricate compliance requirements of employing staff across international borders. Through a unique combination of HR expertise, localized services, and advanced technologies, Safeguard Global enables organizations to hire, pay, onboard and manage their global workforces efficiently and compliantly, allowing them to focus on core business growth.
Why we picked Safeguard Global:
Safeguard Global has a quiet kind of authority. It’s been in this space long enough to know that predictability matters more than flash. In Malaysia, its partnerships are solid, its governance clear, and its support steady. We picked it because it delivers what global employers need most, reliability you can trust quarter after quarter.
If you’re expanding into Southeast Asia, Malaysia probably stands out on your list. The country offers a mix of affordability, skilled professionals, and solid digital infrastructure. For many global companies, it’s an ideal base for remote teams and regional operations.
But hiring directly in Malaysia can get complicated. Employment laws, payroll compliance, and benefit contributions vary by category and state. Setting up a local entity takes time and adds layers of paperwork that most growing companies don’t want.
That’s where Employer of Record (EOR) services come in handy. An EOR lets you hire employees in Malaysia legally, without opening a company. It takes care of employment contracts, payroll, taxes, and benefits so you can focus on running your team.
Whether you’re onboarding a single developer in Penang or building a 20-person support team in Kuala Lumpur, this guide breaks down how EORs work, what they cost, and how to choose the right one for your business.
Why Companies Use EORs in Malaysia
Malaysia offers a good mix of cost efficiency, skill, and stability, but compliance isn’t simple. That’s why more global companies now rely on EORs.
Challenge
How an EOR Helps
No local entity
Lets you hire legally without forming a Malaysian company
Complex compliance
Handles EPF, SOCSO, EIS, and income tax filings
Slow onboarding
Enables hiring in days instead of months
Limited HR bandwidth
Takes over payroll and contract management
Multi-country hiring
Streamlines workforce management across markets
Malaysia by the numbers:
Over 16 million people in the workforce
Ranked among Asia’s top 10 for English proficiency
Setting up a local entity typically takes 3–5 months
How EOR Services Work in Malaysia
The process is fairly straightforward once you understand the roles involved.
You find the right hire: Maybe it’s a sales manager in Kuala Lumpur or a designer in Johor Bahru.
The EOR becomes the official employer: They create a compliant contract, register the employee with EPF, SOCSO, and EIS, and ensure all tax paperwork is in place.
You manage the work, they handle compliance: Your employee reports to you, while the EOR runs payroll, pays taxes, and keeps everything aligned with Malaysian law.
Monthly billing: You get one invoice covering salary, statutory contributions, and the EOR’s fee.
Offboarding: If someone leaves, the EOR handles final payments and documentation per local regulations.
Key Employment Laws an EOR Covers in Malaysia
Malaysia’s employment framework is largely shaped by federal laws. The essentials include:
Employment Act 1955 — covers contracts, wages, working hours, and termination
EPF Act 1991 — defines retirement fund contributions
SOCSO Act 1969 — ensures injury and disability protection
EIS Act 2017 — provides unemployment coverage
Income Tax Act 1967 — governs tax deductions and reporting
Holidays Act 1951 — sets leave and holiday entitlements
Most employees work up to 48 hours per week, with 11–14 public holidays and 8–16 days of annual leave, depending on tenure.
Payroll and Statutory Deductions
EORs handle payroll processing and ensure contributions are filed correctly every month.
Component
Employer
Employee
EPF
13%
11%
SOCSO
Approx 1.75%
Approx 0.5%
EIS
0.2%
0.2%
Income Tax
–
As per salary
EOR Pricing in Malaysia
Costs depend on the role, benefits, and contract duration. On average, EOR pricing ranges from $250 to $700 per employee per month.
Most providers offer either:
A flat monthly rate, or
A percentage of gross salary (usually 6–10%)
What affects pricing:
Seniority of the employee
Added benefits like insurance or allowances
Contract terms and volume discounts
EOR vs. Setting Up a Legal Entity
Factor
EOR
Own Entity
Setup Time
A few days
3–5 months
Upfront Cost
Low
RM 10,000+
Compliance
Handled by EOR
Managed in-house
Risk
Minimal
Full employer liability
Scalability
Flexible
Slower
Best For
Fast entry or pilot hiring
Permanent local presence
For most small and mid-sized teams, using an EOR is faster, cheaper, and safer. A full entity setup makes sense once you reach significant headcount or plan to stay long term.
Choosing the Right EOR Partner in Malaysia
Picking the right EOR in Malaysia goes beyond comparing service lists or monthly fees. The real difference shows up in how well a provider understands local law, manages compliance in-house, and supports your employees once they’re onboard.
An ideal partner handles every statutory requirement directly, EPF, SOCSO, and income tax, without passing the work to outside agents. That kind of control matters when accuracy and timeliness can affect both your reputation and your team’s confidence in payroll.
Transparency is another sign of reliability. Some EORs look affordable on paper but later charge for things like off-cycle payroll or administrative changes. A good provider will explain every line item upfront so you know exactly what you’re paying for.
The employee experience is another important factor to consider. Smooth onboarding, responsive payroll support, and clear payslips make a bigger impact than most people expect. The right platform should give you and your team visibility into pay runs, contracts, and compliance documents, no chasing spreadsheets or emails.
Finally, think about growth. Many companies start with one hire in Malaysia and later expand across ASEAN. It’s easier to choose an EOR that already operates in nearby markets like Singapore or Indonesia than to switch systems later.
Before you sign, ask a few direct questions: do they own their Malaysian entity, how quickly can new hires start, and what happens if you decide to build your own legal presence in the future? A trustworthy provider will answer openly and share examples to back it up.
Trends Shaping Malaysia’s EOR Market
Malaysia’s EOR industry has matured quickly as businesses adapt to new ways of working. Remote and hybrid teams are now the norm, and many EORs have responded by helping clients set up flexible work arrangements, from managing equipment logistics to handling allowances for home-office expenses.
Benefits are evolving too. Beyond the statutory minimums, employers are asking for add-ons like health coverage, meal subsidies, and wellness programs. These perks are becoming key to attracting top local talent, especially in competitive fields like tech and finance.
Technology is another major shift. Payroll automation, integrated dashboards, and digital compliance tools are replacing manual processes that once caused delays. That shift not only saves time but gives companies real-time visibility into payroll and filings.
Data protection is getting sharper focus as well. With the Personal Data Protection Act (PDPA) enforced more actively, serious providers now audit their systems regularly and maintain clear policies on data storage and access.
And as cross-border hiring grows, many global EORs are expanding their coverage across Southeast Asia, giving employers one regional platform instead of juggling separate local vendors.
Final Thoughts
Hiring in Malaysia is easier than ever, as long as you approach it the right way. With an Employer of Record, you can build a local team quickly, stay compliant, and skip the legal setup.
The best EOR partners act as both your compliance guardrail and HR backbone, helping your business operate confidently from day one.
Take time to compare providers, ask the right questions, and review sample contracts. Once you find the right fit, expanding into Malaysia becomes not just simple, but strategic.
Before we check the list of top Employer of Record in Malaysia , here's a quick view of top solutions that you may use. Get on with our detailed list of products below in the article.
Employer of Record in Malaysia FAQs
Q1. What is an Employer of Record (EOR) in Malaysia?
An Employer of Record is a third-party company that legally employs workers on your behalf in Malaysia. It handles payroll, taxes, benefits, and compliance while you manage the employee’s daily work.
Q2. How does an EOR help foreign companies hire in Malaysia?
An EOR allows foreign companies to hire local employees without setting up a Malaysian legal entity. It takes care of employment contracts, tax registration, and statutory filings such as EPF, SOCSO, and EIS.
Q3. Is using an EOR legal in Malaysia?
Yes. EOR arrangements are fully legal in Malaysia as long as the provider is registered locally and complies with the Employment Act and other labor regulations.
Q4. How much does an EOR cost in Malaysia?
EOR services usually cost between $250 and $700 per employee per month, depending on role, seniority, and the range of services included.
Q5. How long does it take to onboard an employee through an EOR?
Most EORs can onboard new hires within 5 to 10 business days, once contracts and documentation are completed.
Q6. What taxes and contributions does an EOR handle in Malaysia?
The EOR manages statutory deductions for the Employees Provident Fund (EPF), Social Security (SOCSO), Employment Insurance System (EIS), and monthly income tax (PCB).
Q7. Can I provide my employees with benefits through an EOR?
Yes. Most EORs offer standard benefits such as health insurance, leave management, and optional allowances. You can customize these based on your company’s policy.
Q8. When should a company consider using an EOR in Malaysia?
An EOR is ideal for companies testing the Malaysian market, hiring remote staff, or building small local teams without investing in entity setup or legal infrastructure.
Q9. Can I switch from an EOR to my own entity later?
Yes. Most EORs offer a smooth transition process where employees are transferred from the EOR’s entity to your newly established Malaysian company.
Manjuri Dutta
Manjuri Dutta is the co-founder and Content Editor of HR Stacks, a leading HR tech and workforce management review platform, and EmployerRecords.com, specializing in Employer-of-Record services for global hiring. She brings a thoughtful and expert voice to articles designed to inform HR leaders, practitioners, and tech buyers alike.
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