Malaysian Employer Rates and Thresholds 2026

Malaysian employers contribute to the Employees Provident Fund (EPF), to SOCSO for employment injury and invalidity, and to the Employment Insurance System (EIS). Covered employers also pay the HRD levy.

The EPF rate table has no upper wage limit, while SOCSO and EIS are charged on wages up to RM6,000 a month. The table shows the rates for a Malaysian employee under 60 earning more than RM5,000 a month.

Employer contributions for a full year at 2026 rates, for a Malaysian employee under 60 earning more than RM5,000 a month, at an employer covered by the HRD levy:

• RM1,700 a month from 1 February 2025 under the Minimum Wages Order 2024, with hourly and daily equivalents (RM8.72 an hour for a six-day week).
• An employee may not be required to work more than 8 hours a day or 45 hours a week, more than 5 consecutive hours without a break of at least 30 minutes, or over a spread of more than 10 hours a day.
• 8 days a year for less than 2 years' service, 12 days for 2 to 5 years, and 16 days for 5 years or more, pro rata in the year employment ends.
• Paid sick leave of 14 days a year for less than 2 years' service, 18 days for 2 to 5 years and 22 days for 5 years or more where no hospitalisation is needed, after examination by a doctor.
• Paid holidays on 11 gazetted public holidays a year, five of which must be National Day, the King's Birthday, the Ruler's Birthday (or Federal Territory Day), Workers' Day and Malaysia Day, plus any day declared a public holiday for that year.
• Female employees are entitled to at least 98 consecutive days of maternity leave. Married male employees with at least 12 months' service get 7 consecutive days of paid paternity leave per confinement, for up to five confinements.

• Notice is as set in the written contract, and the same for both sides. Without a written term, it is at least 4 weeks for less than 2 years' service, 6 weeks for 2 to 5 years and 8 weeks for 5 years or more. Either side can waive it.
• For employees whose wages exceed RM4,000 a month, the Employment Act's provisions on overtime pay, pay for work on rest days and public holidays, and termination and lay-off benefits (section 60J) do not apply.

Changes to these rates and rules, newest first. Every country is covered in our law changes tracker.

• From 1 June 2027: Malaysian minimum wage to rise to RM2,000 a month (announced). The Budget 2027 speech announced that the minimum wage will rise from RM1,700 to RM2,000 a month from June 2027, with MSMEs with annual sales below RM50 million exempted. The order setting the new rate hasn't yet been gazetted.