The best Employer of Record providers in Malaysia, ranked
Ten providers that can employ staff on your behalf in Malaysia, scored on the five things that decide whether the arrangement holds up here: whether they employ through their own Sdn Bhd rather than a subcontractor, how they handle the Employment Act 1955 as rewritten in 2022 and the just-cause standard of the Industrial Relations Act, whether EPF, SOCSO, EIS and the HRD Corp levy are calculated and remitted correctly every month, how plainly they explain their terms, and who picks up the phone once your first hire is on payroll. Malaysia is one of Asia’s more open EOR markets, so the differences between providers are less about legality and more about depth.
Quick verdict
RemotePeople is our pick — best for companies for whom Malaysia is one of several Asian markets, including China. Also worth a call: MSA Asia for clients who also want incorporation, accounting and tax from one adviser, and Deel for software-first teams hiring across many countries at once.
Read this before the ranking
Malaysia does not regulate Employer of Record as a distinct activity. What there is instead is employment law that assumes the legal employer is a real one. The Employment Act 1955, as amended with effect from January 2023, now covers every private-sector employee in Peninsular Malaysia and Labuan for most of its provisions (Sabah and Sarawak have their own ordinances), and the Industrial Relations Act 1967 lets any dismissed employee claim reinstatement unless the employer can show just cause and excuse. The EOR signs the contract, registers with EPF, SOCSO and LHDN, and answers to the Industrial Court if a dismissal is challenged. Two specifics make the choice of provider matter. A foreign hire needs an Employment Pass tied to a sponsoring company registered with the Expatriate Services Division, which must justify the role and meet paid-up-capital thresholds; not every EOR will, or can, sponsor. And the Private Employment Agencies Act 1981 licenses recruitment agencies, while the 2022 amendments require a “contractor for labour” who supplies workers to register with the Director General, so a provider that also recruits or supplies staff should be able to show its paperwork. The first question to ask any provider is the name and SSM registration number of the Sdn Bhd that will employ your hire, and whether that same company will sponsor an Employment Pass if you need one.
How we scored, and what we could not verify
Every provider below was assessed against the same five criteria: own-entity presence in Malaysia, handling of the Employment Act and the Industrial Relations Act, payroll and statutory accuracy across EPF, SOCSO, EIS, the HRD Corp levy and monthly tax deductions, transparency, and support.
An honest limitation: a Malaysian company’s existence can be confirmed through the Companies Commission of Malaysia (SSM) for a small fee, but the search shows only that a company is registered, not that it holds an EPF employer number, a SOCSO code or an ESD registration, nor who actually processes payroll. Where a provider states that it employs through its own Malaysian entity we record that as a claim. Before signing, ask for the company name and registration number, run the SSM search, and ask to see the EPF and SOCSO employer registrations.
| # | Provider | Score | Malaysia footprint | Best for |
|---|---|---|---|---|
| 1 |  RemotePeople | 9.2 | Own Malaysian entity, one of its earliest markets; Asia-Pacific HQ in Singapore | Companies for whom Malaysia is one of several Asian markets, including China |
| 2 |  MSA Asia | 8.7 | Own Kuala Lumpur office; EOR launched in Malaysia in 2026 | Clients who also want incorporation, accounting and tax from one adviser |
| 3 |  Deel | 8.4 | Deel Malaysia Sdn Bhd (claimed); local payroll team | Software-first teams hiring across many countries at once |
| 4 |  Acclime | 8.1 | Own Kuala Lumpur office at KL Eco City | Mid-size groups wanting one adviser for entities and EOR |
| 5 |  Links International | 7.8 | Kuala Lumpur office; in-country payroll and EOR/PEO | Companies that also want recruitment and visa handling |
| 6 |  activpayroll | 7.5 | Asia-Pacific hub in Kuala Lumpur; Propay acquired 2022 | Groups running multi-country payroll who need a few EOR hires |
| 7 |  Dezan Shira & Associates | 7.2 | Dezan Shira & Associates Malaysia Sdn Bhd, Petaling Jaya | Investors treating EOR as a step towards their own Sdn Bhd |
| 8 |  GP Outsourcing Asia | 6.9 | Malaysian company based in Shah Alam since 2009 | Malaysia-only hiring, including contact-centre and bilingual roles |
| 9 |  AYP Group | 6.6 | Singapore-headquartered; Malaysian subsidiary (claimed) | South-east Asian hiring on a budget |
| 10 |  Brighten Business Consulting | 6.3 | Kuala Lumpur company with a Hong Kong connection | Small Hong Kong or Chinese-speaking firms placing a few staff in Malaysia |
Rankings reflect our assessment of each provider for hiring in Malaysia specifically. A provider ranked lower here may be the better choice if most of your hiring is elsewhere.
RemotePeople
RemotePeople employs in Malaysia through its own Sdn Bhd, one of the earliest markets in which it established a presence, and it puts people on that payroll routinely rather than through a partner. Founded in 2018 by Antoine Boquen and Pierre Pradier, the company now runs more than 250 staff across 30 countries and has served over 3,000 clients, with the Asia-Pacific business led from Singapore. Malaysia is handled as part of that regional operation, so the team that drafts your Kuala Lumpur contract also knows the EPF wage tiers, the SOCSO and EIS ceilings and the HRD Corp levy without looking them up. The service model is the differentiator: every client has a dedicated account manager backed by HR and employment specialists, so a salary change, a leave request or a question about an Employment Pass goes to a person who knows the account. Recruitment, payroll for companies with their own entity, contractor management and company incorporation sit alongside EOR, so two hires in Kuala Lumpur can grow into your own Sdn Bhd without changing adviser. EOR Flex starts at US$199 per employee per month, with salary and statutory costs passed through at cost. Where Deel still leads is in the depth of its software integrations, though RemotePeople’s AI Command Center, which lets you request HR tasks in plain language with experts reviewing high-impact changes, closes much of that gap.
- Own Malaysian entity, used continuously since the company’s early years; no partner in the chain
- Dedicated account manager backed by HR and employment specialists, working Asia-Pacific hours from Singapore
- Published statutory detail for Malaysia is accurate and current, down to the EPF wage tiers
- Recruitment, global payroll, contractor management and incorporation alongside EOR, so the EOR-to-entity path stays in-house
- AI Command Center for plain-language HR requests, with expert review of high-impact changes and a full audit record
- Transparent entry price: EOR Flex from US$199 per employee per month
- Fewer third-party integrations than Deel or Rippling if your HR stack is already built around one of them
- Total cost depends on a country-specific quote, so ask for the all-in Malaysia figure before comparing on the US$199 headline
- Employment Pass sponsorship for foreign hires is arranged case by case, as with every provider in Malaysia
- Malaysia entity
- Own Sdn Bhd; employs directly
- Regional base
- Singapore (Asia-Pacific HQ); global HQ New York
- Also offers
- Recruitment, global payroll, US PEO, contractor management, Contractor of Record, benefits and visa support, entity incorporation
- Operating since
- 2018
MSA Asia
An Asia-only corporate-services firm with an office on Jalan Sultan Ismail in Kuala Lumpur, whose Malaysian practice incorporated Sdn Bhds and ran their accounting, tax and payroll for years before it added EOR in mid-2026. That heritage is what puts it second: the people preparing your EOR payroll also file Form E and handle LHDN audits for entity clients, and a client who later wants its own company moves across the corridor rather than to a new firm. There is no self-service platform, the Malaysian EOR offer is new and less productised than at Deel or Acclime, and coverage stops at the edge of its eleven-office footprint, so it is no use for the Philippines or Indonesia.
- Own Kuala Lumpur office; EOR built on an existing incorporation, tax and payroll practice
- Incorporation, accounting, tax and EOR from one adviser; smooth transition to your own Sdn Bhd
- Deep statutory knowledge; 1,500-plus international clients since 2011
- Malaysian EOR is a 2026 addition; ask how many EOR employees it currently runs there
- No self-service platform; adviser-led by design
- Coverage limited to its own footprint
- Malaysia entity
- Own Kuala Lumpur office; Malaysian subsidiary (claimed)
- Regional base
- Shanghai and Hong Kong
- Also offers
- Incorporation, accounting, tax, payroll, corporate advisory
- Operating since
- 2011; Malaysian EOR since 2026
Deel states that it employs Malaysian hires through its own entity, Deel Malaysia Sdn Bhd, rather than a subcontractor, and that a local team handles payroll and HR questions. Its software is the best in this comparison by a distance: onboarding in a few working days, payslips, expenses, equipment, time off and integrations with the HR systems you already use. What it does not offer is an adviser who knows your account and can tell you, before a dismissal, whether your grounds would survive a Section 20 claim; support is ticket-based and largely asynchronous. For a company hiring in a dozen countries this quarter, Malaysia among them, Deel is hard to argue with. For a company whose Malaysian team is the point, the two providers above give more judgment for the money, and Acclime gives a dedicated account manager in Kuala Lumpur.
- Best software, integrations and employee experience in this ranking
- Own Malaysian entity claimed, with a local payroll team
- Ticket-based support rather than a named adviser
- Global templates can miss Malaysian nuance, especially around dismissal and retrenchment
- Employment Pass sponsorship subject to Deel’s own eligibility rules
- Malaysia entity
- Deel Malaysia Sdn Bhd (claimed)
- Regional base
- Global; regional teams in Singapore and elsewhere
- Also offers
- Contractors, global payroll, HRIS, immigration
- Operating since
- 2019
Acclime
Acclime’s Malaysian arm is a proper office rather than a country page, and its PEO and EOR service is more clearly productised than most of the corporate-services firms here: a dedicated account manager as the single local contact, a stated no-hidden-fees position, and published guides on the Employment Act, Employment Pass categories and the incorporation-versus-EOR decision that suggest the firm has had the conversation many times. EOR sits alongside company formation, accounting, tax and corporate-secretarial work, so a client that outgrows the arrangement can incorporate with the same firm. On a named local contact it beats Deel outright; on physical history in Kuala Lumpur it beats RemotePeople. What holds it back is that EOR is one line among many, onboarding is enterprise-style, and it is oriented to established companies rather than a founder making a first overseas hire.
- Own Kuala Lumpur office with a dedicated account manager per client
- Clear, published position on fees and on the EOR-to-entity path
- Strong tax, regulatory and corporate-secretarial bench for regulated or multi-entity clients
- Enterprise-style onboarding; slower than the platforms for one quick hire
- EOR is a service line rather than the core business
- Malaysia entity
- Own Kuala Lumpur office; Malaysian subsidiary (claimed)
- Regional base
- Hong Kong and Singapore
- Also offers
- Incorporation, tax, accounting, corporate secretarial, payroll
- Operating since
- 2019 as Acclime, from older constituent firms
Links International
Links has run payroll in Asia for more than two decades and describes its Malaysian service as fully in-country, with a Kuala Lumpur office, its own Links One payroll platform and integrations with Workday, SuccessFactors and Oracle HCM. It cites a run of payroll-outsourcing awards at the Malaysian HR Vendors of the Year programme, which we note as its own account. Its natural client wants one firm to find the person, sponsor the Employment Pass and run payroll, since Links does all three; on visa handling it is stronger than most of the providers above it. EOR/PEO is, however, secondary to payroll outsourcing and recruitment, the digital experience is traditional next to Deel, and it is better known in Hong Kong and Singapore than to companies arriving from Europe or North America.
- Kuala Lumpur office and a long in-country payroll track record
- Recruitment, Employment Pass applications and payroll under one roof
- Payroll platform with integrations to the major HR systems
- EOR sits behind payroll outsourcing and recruitment in the firm’s priorities
- Traditional service model; less software polish than the platforms
- Malaysia entity
- Own Kuala Lumpur office (claimed)
- Regional base
- Hong Kong
- Also offers
- Payroll outsourcing, recruitment, visa services, HR analytics
- Operating since
- 1999
activpayroll
activpayroll is a payroll company first, and that is both the case for it and the limit of it. It chose Kuala Lumpur as its Asia-Pacific headquarters, bought the local payroll specialist Propay in December 2022, and now runs a sizeable Malaysian team serving clients across the region. On statutory accuracy, EPF tiers, the SOCSO ceiling, EIS, the HRD Corp levy and monthly tax deductions, it is as reliable as anyone on this page, and it beats several higher-ranked providers on the depth of its Malaysian payroll bench. EOR and PEO are offered throughout Malaysia and the region, but as an extension of payroll and global-mobility work rather than the core product. It suits a group that already runs multi-country payroll and wants a few Malaysian employees on a compliant footing; it is not the obvious choice for a first hire.
- Kuala Lumpur is its Asia-Pacific hub, staffed after the Propay acquisition
- Payroll and statutory accuracy is the firm’s core competence
- EOR is an extension of payroll rather than the main business
- Oriented to corporate payroll clients rather than first-time hirers
- Confirm which entity employs and whether it sponsors Employment Passes
- Malaysia entity
- Own Kuala Lumpur operation via Propay acquisition (claimed)
- Regional base
- Kuala Lumpur for Asia-Pacific; group headquarters in Scotland
- Also offers
- Multi-country payroll, global mobility, tax, HR services
- Operating since
- 2001; Kuala Lumpur hub expanded from 2022
Dezan Shira & Associates
Dezan Shira built its name in China and Vietnam over three decades and has extended into Malaysia with a company in Petaling Jaya, positioned on its own site as part of its Asian Alliance network. Its strengths are the ones a foreign investor wants before and after the EOR stage: market-entry structuring, tax, transfer pricing, incentives, and the asiaadmin portal that shows payroll across several Asian countries in one place. As an EOR it is less developed than the firms above: the Malaysian office is small next to its China operation, PEO/EOR is listed as a global-mobility sub-service, and the orientation is towards investors who intend to incorporate. If that describes you, Dezan Shira is a sound first call and its structuring advice beats most of the field. If you want an EOR that treats employment as the main event, look higher up.
- Registered Malaysian company and a regional team with deep Asian experience
- Legal, tax and structuring advice for the entity you may eventually set up
- EOR is a sub-service of global mobility rather than a stand-alone product
- Malaysian office is small relative to its China and Vietnam presence
- Advisory pricing model; less suited to a single low-cost hire
- Malaysia entity
- Dezan Shira & Associates Malaysia Sdn Bhd, Petaling Jaya
- Regional base
- Hong Kong and Shanghai
- Also offers
- Legal, tax, accounting, audit, payroll, business intelligence
- Operating since
- 1992
GP Outsourcing Asia
A home-grown provider that has employed staff for foreign and local clients in Malaysia since 2009, from an office in Shah Alam rather than the city centre. GP Outsourcing Asia describes itself as an MSC-status company formed through a joint venture with Multisonix, which we record as its own account, and its EOR covers contracts, onboarding, payroll, work permits and HR administration alongside contact-centre and bilingual outsourcing. Being Malaysian and only Malaysian, it knows the local machinery: EPF and SOCSO portals, HRD Corp registration, LHDN deadlines, and the practical side of Employment Pass applications through ESD. The limits are equally plain: no coverage beyond Malaysia, a smaller organisation, a service model built around BPO and staffing volumes rather than a single senior hire, and a website that claims rather than documents.
- Malaysian company with a long local record; claimed 2009 founding
- Practical knowledge of EPF, SOCSO, HRD Corp and ESD processes
- Malaysia only; no regional or global coverage
- Oriented to staffing and BPO volumes rather than individual professional hires
- Company claims (MSC status, client numbers) should be verified directly
- Malaysia entity
- GP Outsourcing Asia Sdn Bhd, Shah Alam
- Regional base
- Shah Alam, Selangor
- Also offers
- Payroll, BPO, contact-centre shared services, bilingual services
- Operating since
- 2009 (claimed)
AYP Group
AYP is an Asia-only provider with a Singapore base and a Malaysian subsidiary that it says employs EOR staff under its own Sdn Bhd. Its published Malaysia material is unusually specific for a provider of its size: contracts aligned to the Employment Act as amended, the 13 per cent EPF tier, PCB withholding to LHDN, Employment Pass sponsorship and renewal through ESD, and terminations conducted under the Industrial Relations Act. On price it is competitive. It sits this far down because the footprint and team are smaller than the providers above, because its strength is South-east Asia broadly rather than Malaysia specifically, and because own-entity versus partner coverage needs confirming country by country.
- Asia focus and regional pricing
- Detailed, accurate public material on Malaysian statutory obligations
- Employment Pass sponsorship stated as part of the service
- Smaller team and footprint than the providers above
- Own-entity status in Malaysia is the provider’s claim; verify with SSM
- Malaysia entity
- Malaysian Sdn Bhd (claimed)
- Regional base
- Singapore
- Also offers
- PEO, payroll, visa support
- Operating since
- 2009
Brighten Business Consulting
Brighten Business Consulting Sdn Bhd is a small Kuala Lumpur company that combines marketing and web work with a business-process-outsourcing arm through which it employs staff in Malaysia for overseas clients, many from Hong Kong, and it describes acting as the in-country employer for foreign firms and for larger global EOR platforms that need a Malaysian partner. If you contract with a global provider that lacks its own Malaysian entity, a firm like this may be who actually employs your hire; dealing with it directly removes a layer and a margin. It is, however, a general services company rather than an employment specialist, its public material is thin on the Employment Act, EPF and dismissal, and there is no platform. Ask more questions here than anywhere else on this list, starting with the SSM number.
- Malaysian company that employs locally for overseas clients
- Chinese- and English-speaking team suited to Hong Kong and mainland SMEs
- General consulting and BPO firm rather than an employment specialist
- Little published detail on statutory compliance or dismissal process
- No platform; small team; verify entity and payroll arrangements before signing
- Malaysia entity
- Brighten Business Consulting Sdn Bhd, Kuala Lumpur
- Regional base
- Kuala Lumpur, with a Hong Kong office (claimed)
- Also offers
- BPO, remote staffing, marketing and web services
- Operating since
- Not published; the firm claims ten-plus years
How we scored
- Own-entity presence in MalaysiaWhether the provider employs your hire through its own Sdn Bhd, registered with SSM, EPF, SOCSO and LHDN, or through a local partner. Own entities mean one point of accountability if a dismissal reaches the Industrial Court.
- Employment Act and Industrial Relations Act handlingWhether contracts reflect the Employment Act 1955 as amended in 2022 (45-hour week, 98 days’ maternity leave, seven days’ paternity leave, notice by tenure), whether the provider can explain just cause and excuse before you dismiss anyone, and whether it will sponsor an Employment Pass.
- Payroll and statutory accuracyEPF at 13 or 12 per cent by wage tier (and the 2 per cent rate for non-citizens since October 2025), SOCSO at about 1.75 per cent up to the RM6,000 ceiling, EIS at 0.2 per cent, the HRD Corp levy at 1 per cent where the employer is in scope, and monthly tax deductions remitted to LHDN by the 15th.
- TransparencyAre the monthly fee, deposit, notice period and what happens on termination explained plainly before signature, or only after a sales cycle?
- SupportIs there a named person who knows your account and works Malaysian hours, or a queue?
Frequently asked questions
Is Employer of Record legal in Malaysia?
Yes. Malaysia has no law that prohibits or specifically licenses a third party employing staff who work for your company, and the arrangement is common. The EOR is the employer in law: it signs a contract that complies with the Employment Act 1955, registers the employee with EPF, SOCSO and LHDN, and bears the employer’s obligations under the Industrial Relations Act 1967. Two adjacent regimes matter: recruitment agencies need a licence under the Private Employment Agencies Act 1981, and a contractor for labour who supplies employees to a principal must register with the Director General under the 2022 amendments. A provider that also recruits for you should be able to say which applies to it. See our wider note on whether EOR is legal across Asia.
What does an EOR cost in Malaysia?
Two components. The statutory employer cost for a Malaysian citizen is EPF at 13 per cent of wages up to RM5,000 a month and 12 per cent above that, SOCSO at roughly 1.75 per cent on wages up to RM6,000, EIS at 0.2 per cent on the same ceiling, and, for employers with ten or more employees in a covered sector, a 1 per cent HRD Corp levy: about 13 to 15 per cent on top of gross salary, falling as a proportion for higher earners because SOCSO and EIS are capped. For a non-Malaysian employee the EPF rate has been 2 per cent each side since October 2025. The EOR fee ranges from a couple of hundred US dollars a month at the self-service platforms to several hundred at the adviser-led firms, sometimes plus a deposit of one or two months’ salary. Compare the region on our employer costs in Asia page.
Can an EOR sponsor an Employment Pass in Malaysia?
Sometimes, and this is where Malaysian providers differ most. An Employment Pass is issued to a specific sponsoring company registered with the Expatriate Services Division. The sponsor must meet paid-up-capital thresholds, justify the position and salary against the Category I, II and III bands, and since the 2022 amendments obtain the Director General of Labour’s approval before employing a foreign employee. Because the EOR is the legal employer, it is the EOR that must sponsor. Several providers here state that they do; others decline or restrict it to senior roles. If your hire is not a Malaysian citizen or permanent resident, ask this before anything else, and ask who bears the cost if the application is refused.
How long can an employee stay on EOR in Malaysia?
There is no statutory limit. Unlike Korea, which caps agency work at two years, or China, which caps dispatched workers at 10 per cent of a workforce, Malaysia imposes no clock. The limits are commercial. Once a Malaysian team reaches ten to fifteen people the EOR fee usually exceeds the cost of running a Sdn Bhd, and a company with local revenue, government contracts or licences will need its own entity anyway. MSA Asia, Acclime, RemotePeople and Dezan Shira will incorporate for you and transfer the staff when that point arrives. Plan for it early: a transfer of employment is a termination and re-hire in Malaysian law and needs the employee’s written consent.
How do probation, notice and termination work in Malaysia?
Malaysian law does not prescribe a probation period; the contract sets it, and three to six months is customary. A probationer is not at-will: the Industrial Court has repeatedly held that a probationer has the same protection against dismissal without just cause and excuse as a confirmed employee, applied a little more leniently. Minimum notice is four weeks under two years’ service, six weeks for two to five and eight weeks beyond, unless the contract provides more; payment in lieu is allowed. Any dismissal must be for just cause and excuse under Section 20 of the Industrial Relations Act 1967, and a successful claim can bring up to 24 months’ back wages plus reinstatement or compensation in lieu. Retrenchment must be for a bona fide business reason and follow the Employment (Termination and Lay-Off Benefits) Regulations 1980, which set termination benefits of 10, 15 or 20 days’ wages per year of service by tenure for employees within their scope, with the Code of Conduct for Industrial Harmony guiding the process for everyone else. Our employment law in Asia and employee benefits in Asia pages have more.
Should I use an EOR or set up my own Sdn Bhd?
An EOR is the right tool for a first hire, a market test, or a team that will stay small; someone can be on a compliant payroll in one to two weeks with no set-up cost and no dissolution to worry about. A Sdn Bhd makes sense once you are committed: it lets you hold contracts, invoice Malaysian customers, apply for licences and incentives, sponsor Employment Passes in your own name and, at scale, employ more cheaply. Incorporation through SSM is quick, but the practical timeline including bank account, EPF, SOCSO, LHDN and, for foreign hires, ESD registration is closer to two to four months. The providers that do both EOR and incorporation make the transition least painful. For the regional picture see our ranking of EOR providers across Asia.
Not sure which provider fits?
Tell us how many people, which roles and how soon, and we will point you to the two or three providers worth talking to in Malaysia — without passing your details to any of them.
Ask usSources
- Malaysia, Employment Act 1955 (Act 265) as amended by the Employment (Amendment) Act 2022; Department of Labour Peninsular Malaysia (JTKSM).
- Malaysia, Industrial Relations Act 1967 (Act 177), Section 20; Employment (Termination and Lay-Off Benefits) Regulations 1980; Code of Conduct for Industrial Harmony 1975.
- Employees Provident Fund (KWSP), employer contribution rates and the October 2025 notice on mandatory contributions for non-Malaysian citizen employees.
- Social Security Organisation (PERKESO), contribution rates under the Employees’ Social Security Act 1969 and the Employment Insurance System Act 2017.
- Human Resource Development Corporation (HRD Corp), levy under the Pembangunan Sumber Manusia Berhad Act 2001.
- Immigration Department of Malaysia, Expatriate Services Division, Employment Pass requirements; Private Employment Agencies Act 1981 (Act 246); Companies Commission of Malaysia (SSM).
- Provider websites and published documentation, reviewed September 2026.