Employees in Malaysia

Overview by Globlatrade.net:

Working Conditions

Opening Hours
  • Legal Weekly Duration
48 hours a week.
  • Maximum Duration
Working hours must not be over 9 hours a day and 48 hours a week.
  • Night Hours
Between 10 pm and 5 am (prohibited for women)
Working Rest Day
One rest day a week is laid down by the law.
Paid Annual Vacation
8 days for less than two years' length of service, 12 days for two to five years' length of service, and 16 days for more than five years' length of service.
Retirement Age
There is no legal age for retirement in the private sector even if the EPF (Employment Provident Fund) considers people are eligible from 55 for men and 50 for women.
Child Labor and Minimum Age For Employment
Children under 14 must not work between 8 pm and 7 am the following day; they must not work more than 3 consecutive hours without a 30 minute break; they must not work more than 6 hours a day, and if they go to school, the total time must not be more than 7 hours, time spent at school included.
Informal Labor Market
The informal sector allows a large part of the population to survive. Malaysia has a score of 3/5 according to the index of economic freedom linked to the informal market (Heritage Foundation).

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The Cost of Labor


Minimum Wage
No legally mandated national minimum wage
Average Wage
USD 5,751 per year (women)
USD 15,861 per year (men)
Other Forms of Pay
  • Pay For Overtime
Paid one and a half times the normal rate of remuneration.
  • Pay For Rest Days Worked
Paid twice the normal rate of remuneration (or three times for working on a public holiday).

Social Security Costs

The Areas Covered
Accident at work, disability.
Contributions Paid By the Employer: 1.5 %.
Contributions Paid By the Employee: 0.5 %.
Competent Organization
Social Security Organisation (SOCSO)

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