Statutory and legislative payroll changes in Malaysia, each linked to the page it was checked against. For information only, not legal or tax advice: confirm details with the source before acting. See the terms.
Minimum wage raised to RM1,700 a month
Effective 1 Feb 2025
Malaysia raised the minimum wage from RM1,500 to RM1,700 per month (RM8.72 per hour), effective 1 February 2025 for employers with five or more employees and 1 August 2025 for employers with fewer than five.
For the employer
- Pay at least RM1,700 per month or RM8.72 per hour.
- Employers with fewer than five employees must comply from 1 August 2025.
For the employee
- Minimum monthly pay rises by RM200.
Domestic workers are excluded.
Source: ASEAN Briefing - Malaysia's New Minimum Wage Rate for 2025 · Last verified 1 October 2026
2% EPF contributions for non-Malaysian employees
In force
Non-Malaysian employees are subject to EPF at a flat 2% employer and 2% employee rate, with no wage limit.
For the employer
- Contribute 2% and deduct 2% of wages for non-Malaysian employees.
For the employee
- Foreign employees have 2% of wages deducted for EPF.
In practice: On wages of RM5,000 the employer and employee each contribute RM100.
Source: PwC Worldwide Tax Summaries - Malaysia, Individual - Other taxes · Last verified 1 October 2026