Payroll & Employer
Employer of Record Malaysia
Employ in Malaysia without incorporating a Sdn. Bhd.
We become the legal employer of your Malaysian hires through People Profilers (Services) Sdn. Bhd., handling the employment contract, payroll, EPF, SOCSO, EIS, monthly tax deductions, the HRD Corp levy and annual EA Forms. You direct the work. Priced per active employee, for local hires resident in Malaysia.
24+ years
of regional HR group experience
Since 2023
Malaysia EOR practice - SSM No. 202301013635 (1507557-T)
9 entities
across 5 SEA markets
5 currencies
MYR · SGD · THB · VND · IDR
How it works
1
Scope
Confirm the role, the work location and every employer obligation that attaches, before any contract is issued.
2
Onboard
We become the legal employer. Your team directs the work; we handle the contract, statutory registrations and onboarding.
3
Run
Monthly payroll in ringgit, EPF, SOCSO, EIS and tax deductions remitted, leave administered, EA Forms issued annually.
4
Adjust
Scale up, transition employees to your own Sdn. Bhd. once it is registered, or wind down. Documented handover either way.
Employer of Record in Malaysia, backed by 24+ years of group heritage
Employer of Record is a legal undertaking rather than a payroll convenience. On paper your hire becomes our employee, and every obligation that attaches to a Malaysian employment relationship becomes ours: EPF and SOCSO from the first payroll run, EIS, monthly tax deductions remitted to LHDN, the HRD Corp levy, statutory leave, and the annual EA Form each employee needs to file their own return. Malaysia's Employment Act now reaches a far wider band of employees than it once did, which catches out employers who assume a salaried professional sits outside it. Our EOR practice runs through People Profilers (Services) Sdn. Bhd., incorporated in April 2023 with the specific mandate to provide manpower contracting and payroll services, and sits inside a group with locally incorporated entities in five Southeast Asian markets.
How our EOR pricing works
Pricing is per active employee per month, quoted as a percentage of salary against a per-employee minimum, whichever is higher. Employer statutory cost sits on top and is passed through at actual: EPF, SOCSO, EIS and the HRD Corp levy. We show that breakdown before you sign, because the gap between a headline salary and the true monthly cost of a Malaysian employee is the number most budgets get wrong.
Service fee - % of total salary cost
- ✓Percentage of total monthly salary cost (incl. reimbursements)
- ✓Subject to a minimum monthly fee per employee
- ✓Both % and minimum vary by country (MY, SG, TH, VN, ID)
- ✓Exact rates confirmed in engagement letter before onboarding
Pass-through statutory contributions
- ✓EPF employer portion (Malaysia)
- ✓the HRD Corp levy, SOCSO, EIS at statutory rates (Malaysia)
- ✓Country-equivalent contributions in SG / TH / VN / ID
- ✓Calculated at official rates - no markup, no margin
One-time + situational
- ✓One-time onboarding setup per employee
- ✓Employment contract drafting + statutory registrations
- ✓Annual leave encashment + final settlement at separation
- ✓Optional add-ons: expense management, leave portal access
The service fee, the per-employee minimum, the statutory pass-throughs and the notice period are all set out in the engagement letter before the first hire is contracted. Nothing is billed that was not quoted.
When Employer of Record makes sense in Malaysia
Three situations account for most of the EOR work we do here, and one situation where it is the wrong answer.
You have found the person before you have the entity
Incorporating a Sdn. Bhd. is the fast part. What takes the time is the corporate bank account, the tax file, and the EPF, SOCSO and EIS employer registrations, and a good candidate will not wait out that sequence with a competing offer in hand. EOR lets the hire start on a compliant Malaysian contract now and move across when your registrations are live.
You are testing Malaysia before committing to it
One salesperson in Kuala Lumpur or two engineers in Penang is not a reason to carry a legal entity, an audit and a company secretary. EOR gives you a real Malaysian employment relationship, with real statutory contributions, at the headcount you actually have, and winding it down is a notice period rather than a strike-off.
The hire is genuinely temporary
Integration teams after an acquisition, a fixed-term project, or people you need to hold through a market exit. Where the end date is known at the start, incorporating to employ them rarely pays back.
EOR in Malaysia covers local hires only: citizens, permanent residents and others already entitled to work here. An Employment Pass is tied to the employing company and its own hiring profile, so a foreign hire is a work pass question rather than an EOR one. Our People Advisory and Mobility practice handles those.
EMPLOYER OF RECORD
Employ in Malaysia without incorporating a local entity
People Profilers (Services) Sdn. Bhd. becomes the legal employer, you direct the work · EPF, SOCSO, EIS, monthly tax deductions and the HRD Corp levy handled · Local hires resident in Malaysia
Industries & Functions We Cover
Employer of Record support spans the same industry and functional breadth as our recruitment practice. People Profilers has placed and employed talent across every major Malaysia and SEA industry, backed by 24+ years of regional group heritage across Southeast Asia - your EOR hire will be administered by consultants who know your sector.
Aerospace & Aviation
Licensed aircraft engineers, avionics technicians, MRO project managers and aerospace QA around Subang, Sepang and Senai.
Automotive
Sales and aftersales managers, service centre leads, parts and inventory specialists, and EV product roles with distributors and component makers.
Banking & Financial Services
Relationship managers, credit and investment analysts, compliance and AML officers and risk managers across BNM-licensed institutions, takaful and Islamic finance.
Biotechnology & Pharmaceutical
Regulatory affairs, QA and QC, process and validation specialists, medical science liaisons and commercial roles for manufacturers and distributors.
Chemical
Process and production engineers, EHS officers, technical sales and plant supervisors across specialty and petrochemical operations.
Construction & Civil Engineering
Project managers, site and structural engineers, quantity surveyors, contracts managers and safety officers on Klang Valley and Iskandar developments.
FMCG & Retail
Brand and category managers, trade marketing, key account managers and retail operations across a dispersed peninsular sales force.
Healthcare
Medical representatives, clinical operations, pharmacists, nursing leadership and hospital administration for private groups and device companies.
IT & Telecommunication
Software engineers, DevOps, product managers, network and infrastructure specialists and technical sales across KL, Cyberjaya and the Penang corridor.
Logistics & Transportation
Warehouse and operations supervisors, freight forwarders, customs specialists, fleet and procurement roles around Port Klang, KLIA and Johor.
Marine & Offshore Engineering
Naval architects, marine and subsea engineers, project and vessel operations roles, and HSE specialists for yards and offshore support.
Media & Publishing
Account managers, content and digital marketing specialists, designers, editors and PR executives across agencies and publishers.
Oil & Gas
Drilling, process and reservoir engineers, HSE coordinators, project controls and commercial analysts, including upstream and Sarawak and Sabah postings.
Real Estate & Property
Property and leasing managers, investment and asset managers, facilities leads and property consultants for developers and REITs.
Semiconductor
Process, equipment and test engineers, yield and reliability specialists, production supervisors and supply chain roles across the Penang and Kulim clusters.
Frequently asked questions
Who is the legal employer when I engage People Profilers EOR?
People Profilers becomes the legal employer of your hire - through People Profilers (Services) Sdn. Bhd. (SSM No. 202301013635 (1507557-T)) for Malaysia engagements, or through the relevant in-country entity for Singapore, Thailand, Vietnam, and Indonesia hires. Your team continues to direct day-to-day work, set priorities, and manage performance. We handle the employment contract, statutory registrations, payroll, and compliance filings.
EOR is a manpower contracting service, not an Employment Agency service. We are the employer, not an introducer. People Profilers (Services) Sdn. Bhd. is registered with SSM (Suruhanjaya Syarikat Malaysia / Companies Commission of Malaysia) to provide manpower contracting and HR outsourcing services, which is the appropriate Malaysia framework for providing EOR and payroll services. Our group also holds JTKSM Employment Agency Licence C No. 1432 (under Agensi Pekerjaan People Profilers Malaysia Sdn. Bhd.) for our separate recruitment and executive search practices, but that licence is not required for EOR.
Who is eligible to be hired through your EOR service?
Local hires only: Malaysian citizens, permanent residents and others already entitled to work in Malaysia.
An Employment Pass is issued against the employing company and its own hiring profile, so we cannot sponsor a foreign national into your role through EOR. That is a work pass matter and our People Advisory and Mobility practice handles it separately.
If your overseas company wants Malaysia-based talent on work passes, the standard route is to either set up a Representative Office through MIDA (Malaysian Investment Development Authority), or incorporate a Malaysia company through SSM. If you need work pass or immigration support for a genuine Malaysia-based hire, that's handled by our separate People Advisory & Mobility practice, operated under our EA-licensed entity (APPPMY, JTKSM Licence C No. 1432).
Which countries can you act as Employer of Record in?
People Profilers operates nine legal entities across five SEA markets: Malaysia, Singapore, Thailand, Vietnam, and Indonesia. We can act as Employer of Record in all five jurisdictions, using the locally incorporated entity for each country.
Each engagement is administered in the local currency - MYR, SGD, THB, VND, or IDR - with statutory contributions applied at the rates set by each country's regulator.
How is the EOR service fee calculated?
Our EOR service fee is calculated as a percentage of the employee's total monthly salary cost, including base salary and regular reimbursements. The fee is subject to a minimum monthly amount per employee, which ensures a baseline level of service coverage regardless of salary band.
Both the applicable percentage and the minimum monthly fee vary by country (MY, SG, TH, VN, ID), reflecting the local cost-to-employ structure, statutory framework, and operational complexity in each market. Your exact percentage and minimum are documented in the engagement letter before onboarding begins.
There is no retainer, no minimum headcount, and no charge for months when no employee is active.
How are statutory employer contributions handled?
They are ours to calculate, remit and evidence. EPF and SOCSO from the first payroll run, EIS, monthly tax deductions to LHDN and the HRD Corp levy where it applies. Every contribution is passed through to you at actual cost alongside the service fee, so you see what was paid rather than a blended figure.
Each employee receives an EA Form annually for their own tax filing, and you get the supporting remittance records for your audit.
What if I want to transition my EOR employee to my own entity later?
That is the expected ending rather than an exception, and most Malaysian EOR engagements we run are written with it in mind. Once your Sdn. Bhd. has its tax file and its EPF, SOCSO and EIS employer registrations, we novate the employment across.
Length of service carries over, so accrued leave and entitlements are preserved rather than reset. We hand over the personnel file, the contribution history and the EA Form record, and there is no transfer fee.
Explore our other services
Need something different? Browse our other broad service categories.
Build strong teams with confidence. Our recruitment solutions connect you with the right talent, at the right time, using a consultative approach that prioritises long term fit and performance.
Simplify workforce management while staying compliant. Our employer and payroll solutions reduce administrative burden and allow you to focus on growing your business.
