

Employer of Record (EOR) in Malaysia
Whether you’re a business owner who wants to hire team members who seek employment status in Malaysia, Native Teams has you covered. With our comprehensive EOR solutions, you can now work and expand your business or career without worrying about your administrative duties and legal obligations.
How does an EOR in Malaysia work?
Native Teams’ EOR solutions let you hire individuals from Malaysia without opening a legal entity there. Our team will take over the most complex and time-consuming tasks like payroll processing, employment contracts, employee onboarding, and compliance with local labour laws while you retain the daily management of your employees.
Who can use EOR services in Malaysia?
Our EOR solutions are designed to support business owners who want to work in compliance with Malaysian labour laws and regulations. Whether you’re a startup, a small company, or a large corporation, Native Teams can help you hire and onboard team members from Malaysia.
With our EOR solutions, you can skip the complex process of opening your own legal entity in Malaysia and let us handle everything from employment contracts, payroll processing, compliance, and other employee management aspects.
Features of Native Teams’ EOR services in Malaysia

As a business owner, you can utilise our legal entities in Malaysia to provide legal employment status. Business owners can hire, onboard, and pay their team members in Malaysia without the complex procedure behind it.

The Native Teams platform will automate your entire HR administration and provide you with all the documentation you need to stay compliant. Our EOR solutions make it easy to access everything you need within just a few clicks.

Our EOR solutions will provide you with fully localised payroll calculators for 85+ countries, including Malaysia. Using our payroll calculator, business owners can easily calculate salaries, taxes, benefits, and other statutory deductions for themselves or their team members in the country.

With Native Teams as a legal employer, employers can offer healthcare and pension benefits, helping them attract and retain the best global talent on the market with minimum effort on their part.


Explore our detailed hiring guide to learn more about Malaysian labour laws and regulations.
What legal requirements exist for employment in Malaysia
Businesses that want to hire individuals from Malaysia must have a registered legal entity before starting the hiring procedure.
Employers are required to provide their employees with written employment contracts to outline the most important employment terms.
It’s obligatory to register employees with the Employee Provident Fund to make mandatory contributions on their behalf.
Social security registration is also mandatory for submission of social security benefits.
The Inland Revenue Board of Malaysia obligates employees to deduct and remit income taxes from their employees’ salaries.
Employers who hire individuals from Malaysia must adhere to local labour laws regarding minimum wages, benefits, working hours, termination of employment, and other important requirements.
Please note that all these requirements may vary depending on the job type, the employer, and individual circumstances.

Why choose Native Teams as your Malaysia Employer of Record?
With local legal entities in 85+ countries worldwide, Native Teams helps businesses expand their global presence.
Our expert teams of tax and legal professionals will help you comply with all the Malaysian labour laws while also taking care of your HR admin, payroll and payments, employment management, tax liabilities, and much more.
What you need to know?
An Employer of Record (EOR) is a global service provider that takes over the legal responsibility of employing individuals on behalf of another company. EORs’ main responsibility is handling the administrative and compliance duties of the client, which typically includes payroll processing, tax withholding, benefits administration, and compliance with local labour laws.
The costs for using an EOR provider in Malaysia can be different, depending on factors like the specific EOR provider, the number of employees, and the scope of services required. Native Teams’ EOR services are available in 85+ countries and are recognised for providing flexibility, transparency, and customisation in the pricing structure. Check our pricing page to see what we offer for your business.
EOR providers take over the role of legal employer for your company, including the full responsibility for hiring employees, managing payroll, administering benefits, and withholding taxes. As such, EOR providers are mostly advantageous for companies that want to hire team members from different countries but don’t have their own legal entity in the country of employment.
PEO providers cover only a part of these responsibilities, including HR tasks like payroll and benefits administration. The responsibility for employment management and compliance is shared between the client company and the PEO provider, while the client company remains the legal employer of their new hires.
Hence, PEO providers are beneficial for businesses that have their own legal entities in the country of employment but need professional assistance for handling employment management and HR operations.
The main responsibility of EOR providers is to assume the role of the legal employer for your employees in their residential countries. This means that your team members will be legally employed through the legal entity of the EOR provider. The EOR provider will also take over responsibilities like employment contracts, benefits administration, payroll, onboarding and offboarding processes, compliance with local laws, and other key functions.
In simple terms, an EOR provider takes over all the administrative and compliance tasks of employment management and provides additional HR support if needed.
Yes. Using EOR services in Malaysia is absolutely legal. In fact, the main responsibility of EORs like Native Teams is to help businesses comply with local labour laws. With the help of an EOR provider, every business can compliantly hire, onboard, and pay team members, while solo professionals can regulate their employment status and receive employment benefits in Malaysia.
Opening your own company in Malaysia is a complex and lengthy process that requires a lot of legal expertise and resources. The process includes administrative steps like registering your company with the authorities, obtaining a tax identification number, opening a business bank account, and sometimes even providing a physical office space for your company.
With an EOR provider, you can eliminate this complex process and hire employees in Malaysia quickly and cost-effectively. By having Native Teams as a legal employer, you can employ any individual through our legal entities in Malaysia and have your payroll, taxes, and employment benefits handled without worrying about local compliance.
In simple terms, Native Teams will provide you with the required expertise and infrastructure to hire in Malaysia, allowing you to save time and money and focus on your core business duties.
There is no specific limit on the number of people you can employ in Malaysia or any other country. With Native Teams’ EOR solutions, you can provide a legally “employed” status for yourself or hire as many individuals as your business requires.