When hiring for a project in Malaysia, workers who aren’t based there will require a work permit – and you’ll need to apply for this on their behalf.
Read on to find out more about the application process, plus why Malaysia is rising in popularity for projects.
Why choose Malaysia?
The top reasons to choose Malaysia include:
Minimum wage is MYR 1,500 per month
While the 13/14th month isn’t a statutory requirement, it has become customary for employers to pay a bonus
8-hour work days, 6-days a week maximum
Annual leave:
8 days for the first 2 years in a role
12 days for 2-5 years’ service
16 days beyond this
6 compulsory public holidays, and 10 optional ones (which most employers observe)
Sick pay:
14 days for the first 2 years in a role
18 days for 2-5 years’ service
22 days thereafter
And it’s taxation system has proven to be attractive too:
Malaysia income tax system: Progressive, meaning higher earners are typically subject to higher tax rates.
Inheritance tax: As this was abolished in 1991, there are no inheritance, estate, or gift taxes available in Malaysia.
Real Property Gains Tax (RPGT): Whether someone is classed as a resident or not, they’ll be charged RPGT on gains that transpire from disposing of real property. This includes shares in a Real Property Company (RPC).
Which visa should you choose?
There are three main types of visa for working in Malaysia:
Employment Pass
For this visa, the worker will need to possess suitable qualifications and work experience. In addition, their monthly salary should be at least MYR 3,000 per month. In certain categories of work, it will need to be MYR 10,000 or more.
Temporary Employment Pass
There aren’t any specific qualification requirements needed to obtain this visa – however, the contractor should be between ages 18 and 45. They must also be from only approved countries, including, but not limited to, India, Pakistan, the Philippines and Cambodia.
Professional Visit Pass
This allows the worker to work in Malaysia for a specific period of time. It’s required that they are employed by a non-Malaysian organisation and their work falls into one of the eligible categories of work (such as foreign artists, film workers, religious workers, government workers, students undergoing training, guest lecturers, or volunteers). As a result, the worker requires a sponsor, rather than an employer.
What documents are required?
To apply for a visa in Malaysia, considerable paperwork is needed, including:
Application form for foreign workers quota.
Particulars of applicant company.
Details of employment structure.
Copy of employment contract with original stamp.
Job description for the worker’s position.
Memorandum and Articles of Association.
Additional documentation related to the sector/copy of approval from Malaysian agencies.
The employee’s passport and application form.
Three recent passport-size photos.
Confirmation letter from the employer regarding salary and tax revenues.
Manage the Malaysia work visa process with WRS
Having dealt with visa applications in various countries, we understand that this process comes with its headaches. To save you the time and effort, we’re here to get your documents processed – fast.
As we’re registered to deliver tax services and managed payroll in Malaysia, we can provide a seamless solution for paying workers – in the right currency and on time, every time. And with our timesheet payroll software, approval and submission has never been easier.
Global mobilisation is our forte. Combat any challenges by getting in touch with our team.
Disclaimer: Worldwide Recruitment Solutions does not provide visa, immigration or taxation advice. This material has been prepared for informational purposes only, and is not intended and should not be relied upon for visa, immigration or taxation advice. You should consult with a qualified immigration professional or the official government website of the country you're applying to for the most up-to-date and accurate information.
