Employers are required to fulfill salary payments to employees within 7 days following the end of each wage period (which is one month), except for overtime, which should be paid by the last day of the subsequent wage period.

Salary payments cover basic wage and other cash payments outlined in the employment agreement, excluding items such as travel allowance, deductions, bonuses, accommodation, contributions, and other incurred expenses.

Employers are obligated to register their organisation and employees with the EPF, ensure orderly contributions and record keeping as well as comply with the existing policies and requirements.

Under Section 41(1), EPF Act 1991, an employer shall register with the EPF within 7 days from the date the employer becomes liable to contribute, that is as soon as an employee is employed.

The employer must pay their employee’s contributions on or before the 15th of the following wage month.

The minimum late payment charge imposed is RM10. The late payment charge will be rounded up to the nearest Ringgit denomination.

An employer who wishes to terminate their operations shall notify the EPF by completing Form KWSP 6 (Form B)/mail/email or other designated channels within 30 days.

New employer and employee must be registered with SOCSO within 30 days upon hiring a new employee.

For registration purpose, an employer is required to complete the Employer’s Registration Form (Form 1) and Employee’s Registration Form (Form 2) alongside other online documents in the ASSIST Portal.

The monthly SOCSO contribution, which includes both the employee and the employer’s portion, should be paid for the previous month’s wage by the 15th of the month.

Interest on late payment of contributions will be imposed at a rate of 6% per annum for each day of contributions not paid within the stipulated period.

Any employer who ceases to be an employer is required to submit an application by uploading a completed Form 1A together with the relevant documents within 30 days from cessation via ASSIST Portal.

Employee and employer contributions to the EIS are paid along with the SOCSO contribution.

Interest on late payment of contributions will be imposed at a rate of 6% per annum for each day of contributions not paid within the stipulated period.

Employer are required to remit payment on or before the 15th of the following month.

The minimum fine is RM200 and not more than RM20,000 or 6 months imprisonment or both. 

If your company employs a minimum of ten (10) or more Malaysian employees, it is compulsory for you to register with Human Resource Development Corporation (HRD Corp).

If your company employs five (5) to nine (9) Malaysian employees, your registration with HRD Corp is optional.

Companies that have registered with HRD Corp are responsible to pay a monthly Human Resource Development (HRD) levy of 1% (mandatory category) or 0.5% (optional category) from the company’s monthly wages plus fixed allowances.​

Section 13(1) of the PSMB Act Failure in making the levy payment before the stipulated timeline (by every 15th of the month) will result in:

1. Fine not exceeding RM20,000 (Ringgit Malaysia) or imprisonment for a term not exceeding two (2) years or both (on conviction).
2. Yearly interest of 10% (per cent) in respect of each day of default / delay in payment.

Company can apply cessation with if:

1. The company has ceased its operation, wound up, dormant, acquired by or merged with other company.
2. No levy and interest arrears.
3. No training conducted after the submission of Form 4.