After your company is successfully incorporated (click here for Company Incorporation FAQ), the next step is to hire your employees.When looking to hire employees in Malaysia, it’s important to consider both traditional and non-traditional methods of recruitment. This can include job fairs, online job boards, and networking through industry associations and business groups. It’s also important to carefully review the qualifications and experience of candidates and to conduct thorough background checks and references.
When employing and managing employees in Malaysia, it’s important to follow all relevant laws and regulations, including those related to minimum wage, working hours, and health and safety. Employers are also required to provide certain benefits and support to their employees, such as paid leave, overtime pay, and health insurance. Additionally, it’s important to foster a positive and inclusive workplace culture, and to effectively communicate expectations and goals with employees.
Registration with SOCSO
SOCSO (Social Security Organisation) or also known as PERKESO (Pertubuhan Keselamatan Sosial) is a government agency established to provide social security protections to employees in Malaysia.
When to register
Within 30 days from the date that you start hiring.
Where to register
PERKESO ASSIST Online Portal (SOCSO EMPLOYER LOGIN)
Payment due date
By the 15th of every month for the salary issued for the previous month.
After you have registered with ASSIST Portal, you can start your registration process by uploading these forms:
- Employer’s Registration Form (Form 1)
- Employee’s Registration Form (Form 2)
- Other supporting Document (subject to company type)
How to apply SOCSO?
To register, you need to download and fill in Assist Portal Enrollment form and either email it to idportal@perkeso.gov.my or submit it to your nearest PERKESO branch.
Only Identity Card number issued by National Registration Department will be used for registration all matters. If you need to make any changes regarding name, address, type, or status of ownership of the company or employee, you need to do so via the ASSIST Portal.
Registration of Employment Insurance System (EIS)
Administered by Perkeso, the EIS (Employment Insurance System) acts as a social security network and it is established to help employees who lost their job by providing financial assistance, career counselling, job suitability support services.
When to register
Within 30 days from the date that you start hiring.
Where to register
PERKESO ASSIST Online Portal or at the nearest SOCSO office
Payment due date
By the 15th of every month for the salary issued for the previous month.
Who needs to contribute
All Malaysian and permanent resident employees aged 18 to 60, with exception for employees aged 57 and above who have never contributed before.
Documents needed
- New employers who have not register with SOCSO are required to complete employer’s registration form (SIP 1 form) and employer’s registration form (SIP 2 form).
- For existing employers that already registered with SOCSO, they need complete the employee’s notification form (SIP 1A & SIP 2A FORMS)
All private sector employers who have at least one (1) employee should register their company and their employees and pay for the EIS contributions.
In Malaysia, the contribution rate for the Social Security Organization (SOCSO) is set at 1% of the employee’s salary for both the employee and the employer. The contribution rate for the Employment Insurance System (EIS) is 0.5% of the employee’s salary, with the employer contributing 1% and the employee contributing 0.5%. These rates are subject to change, so it is recommended to check with the relevant government agencies for the most up-to-date information.
Registration with Human Resources Development
Human Resources Development Fund (HRDF) is established based on the Human Resources Development Act 1992 or currently known as Pembangunan Sumber Manusia Berhad Act 2001 (PSMB). It aims to promote the training and development of employees, apprentices, and trainee by collecting human resources levy.
Under PSMB Act 2001, it is a requirement for employers to register with HRBF.
Who should register
All employers in the manufacturing and services and transportation sectors.
Where to register
Via online or at the nearest PSMB counter
Payment due date
By the 15th of every month
Documents needed
- Copy of SSM Section 17 (Formerly known as Form 9)
- Copy of SSM Section 78 (Formerly known as Form 24)
- Copy of SSM Section 58 (Formerly known as Form 49)
- Company Profile/Annual Return/Financial Statements or any documents that state the activity of the company
- EPF statement
- HRDF Form 1 and Form 1a (counter registration)
Registration with Employees Provident Fund (EPF)
Employees’ Provident Fund (EPF) or Kumpulan Wang Simpanan Pekerja (KWSP) is a government agency that manages the retirement planning and compulsory saving for private sector employees.
Dateline to register
Within 7 days from the date of first employee is employed.
Where to register
Via online
Payment due date
By the 15th of every month for the salary issued for the previous month
Documents needed
- Copy of SSM Section 17 (Formerly known as Form 9)
- Copy of SSM Section 58 (Formerly known as Form 49)
- IC of one director
- KWSP Form 1 (signed and stamped)
- Employee information
- EPF contributions is based on nationality and not tax residence status. Hence, it is mandatory for Malaysians and those who reside permanently in Malaysia and not compulsory to foreigners.
- As an employer, you will have to register your employees with EPF if they have not been registered before the first contribution can be made.
- Both employee and employer need to pay EPF contribution. For the employee, it is a deduction from gross pay in the payslip while for the employer contribution, generally, it will appear on the payslip, and it is the employer’s responsibility to pay for the contribution.
Registration with Inland Revenue Board (IRB)
Inland Revenue Board (IRB) or Lembaga Hasil Dalam Negeri (LHDN) is a statutory body that are responsible for administration of direct tax and implementation of laws act and audition.
Documents needed
- Copy of SSM Section 17 (Formerly known as Form 9)
- Copy of SSM Section 58 (Formerly known as Form 49)
- Copy of SSM Form 13 (if company has changed name)
Where to register
Via online or LHDN’S customer Feedback System
Note :
- After completing the online application, you will get your Income Tax Reference Number within 3 days
- e-Daftar application can be automatically cancelled if your documents are incomplete within 14 days from the date of application.
- New employers are required to complete online registration of income Tax File with IRB by using E-daftar to obtain their E number. Click here to fill your online application form.
- For any employer who hires an individual who is liable to income tax, it is advisable to notify the nearest Assessment Branch of the IRB for the said employee at least within one (1) month from the start date of employment.
How to register epf and socso for new employee
To register for EPF (Employees Provident Fund) and SOCSO (Social Security Organization) for a new employee in Malaysia, the following steps are typically involved:
- Complete EPF registration form: The employer must complete the EPF registration form (Form KWSP 3) for each employee and send it to the nearest EPF office along with the relevant documentation and the initial contribution.
- Complete SOCSO registration form: The employer must complete the SOCSO registration form (Form 1) for each employee and send it to the nearest SOCSO office along with the relevant documentation and the initial contribution.
- Make contributions: Both EPF and SOCSO contributions must be made on a monthly basis, and the contribution rate is determined by the employee’s salary.
- Update information: It is important to keep the information up-to-date, such as changes in the employee’s salary or personal details.
