Payroll outsourcing services in Malaysia.

Get comprehensive payroll outsourcing services for your Malaysia business. Our experienced and skilled staff can help you streamline your payroll processes, stay compliant and free up your team from these time-consuming monthly tasks.

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Payroll outsourcing service in Hong Kong

Leave your payroll to
our in-country experts.

Integrated tax compliance

Besides accurate and timely payroll calculating and processing, we can also integrate a full compliance service.

Robust security

Strict confidentiality of personal details and salary information through secured systems and procedures.

Professional support

Expert payroll and tax support when you need it via effective and efficient communications with you and your staff.

Payroll services

Flexible and scalable payroll solutions.

Whatever the compensation and benefit policy that your company has, we will provide complete, accurate and timely reports. Our complete payroll services cover all aspects of the process and can be custom-configured and scaled to your needs.

Payroll
A. Initial payroll setup
We will import your employee data and set up the payroll system to your specific needs, regardless of what compensation and benefits policy your company has (net or gross, taxable or non-taxable income, recurring or non-recurring payments).
What is included?
One-off
B. Monthly payroll services*
Each month, we will alert you to confirm essential employee details, such as salary, leaves and more. We will then handle all your payroll calculations, statutory contributions, filings, salary payments and other paperwork for you. You only need to review and approve. Detailed reports, including payslips and other documents, will be available to you online on the client-service platform.
What is included?
Monthly
C. Helpdesk
We will provide virtual help desk support to answer employee queries about their payroll. These are channelled through the authorised person in your company.
Monthly
D. Year-end services
We will prepare and submit all the necessary year-end returns, filings and tax forms for each employee.
What is included?
Annually
Client self-service portal
Managing the payroll is easy and efficient with our cloud-based client self-service portal. With interfaces for employees (employee self-service) and management (management self-service), both parties have access to relevant information pertaining to them and can seamlessly manage:
- Employee data
- Employee attendance
- Requesting and managing leave
- Claiming expenses and more
Monthly

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*Our monthly regular processing fees follow a tiered structure, which offers economy of scale, where the average fees per employee will decrease as the total number of employees increase. The total monthly processing fees will be the accumulation of fees for each tier in accordance to the number of head counts being serviced. The month to month actual fees will vary based on the numbers of headcount as they increase or decrease.

*Irregular processing fee will be applied as required for any employee payment processing, which does not coincide with monthly regular payroll processing (off cycle processing), e.g. religious festivities bonus, performance bonus pay-outs, incentives, etc.

Payroll implementation process

Simple steps to implement your payroll.

1. Initial assessment

The process starts with assessing your payroll needs, selecting the required services and preparation of the agreed services to commence. In this stage, we will also take the opportunity to identify other areas of improvement for a more efficient payroll process overall.

2. Service blueprint

Once we have agreed to proceed with the services, we will produce a payroll blueprint document. The blueprint defines all aspects of the payroll administration (such as including initial data migration, ongoing processing, calculation details, reporting requirements and employee services, and payroll calendar) and it will serve as a common reference for both parties.

3. Testing phase

During establishing a test environment, we will customise the payroll system to meet your requirements, set up the system, migrate the employee data and integrate transaction data.

4. Parallel run & evaluation

Next, we will process and compare results with the previous payroll calculations. After due checks and resolution of any calculation differences, we will make a joint decision to switch to our payroll system, for the duration of the agreed contractual period.

5. Production

Your payroll system is successfully set up and ready to be rolled out.

Ongoing customer support from people who care about your team.

Get expert payroll and tax support when you need it via effective and efficient communication our team. Even when everything runs smoothly, we will send you proactive alerts of regulatory changes that may affect your business and your employees.

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Acclime benefits

Why outsource your payroll
to Acclime?

Reduced operating costs

Save your operation costs with cost-effective access to proven payroll technology and infrastructure. Our fees are transparent, predictable and not susceptible to hidden costs, such as non-compliance penalties or key staff turnover. We can further reduce your costs by consolidating multiple services.

Complete payroll solution

We provide everything you will need to successfully pay your staff accurately and on time, from calculation of payroll and benefits including pay slips through income tax computation and payments and robust reporting to statutory compliance filings, all customisable to the size of your team and your needs.

Effective communication
& reporting

Simplify your operations with effectively managed payroll services. Besides communicating via a single point of contact, we will be providing consistent and robust reporting that will allow you to free up your internal resources and be on top of your payroll processes.

FAQ

Common questions.

What are the mandatory payroll contributions employers must make in Malaysia?

Malaysian employers are required to contribute to four statutory schemes alongside employees. The applicable rates are:

EPF (Employees Provident Fund): 13% employer contribution for employees earning RM 5,000 or below per month and 12% above that threshold; employees contribute 11%. Foreign employees on valid employment passes contribute 2% each effective October 2025
SOCSO (Social Security Organisation): 1.75% employer and 0.5% employee, calculated via a contribution table capped at a monthly wage ceiling of RM 6,000
EIS (Employment Insurance System): 0.2% each from employer and employee, capped at RM 6,000 monthly salary
HRD Corp levy: 1% of monthly basic salary and fixed allowances, mandatory for companies in eligible industries with 10 or more Malaysian employees

Total employer statutory contributions across EPF, SOCSO, EIS and HRD Corp typically add 15% to 20% above gross salary depending on headcount, industry and salary level. For a full breakdown of EPF contribution tiers, registration requirements and penalties, see the EPF guide.

How is monthly income tax withheld from employee salaries in Malaysia?

Employers in Malaysia are required to deduct and remit income tax monthly through the Potongan Cukai Berjadual (PCB) system administered by the Inland Revenue Board (LHDN). PCB is a prepayment of the employee’s annual tax liability spread across 12 months, calculated using LHDN’s published withholding tables based on monthly salary and declared personal reliefs.

Malaysia applies progressive income tax rates for tax residents, ranging from 0% on the first RM 5,000 of chargeable income up to 30% above RM 2 million. Non-resident employees are taxed at a flat rate of 30% with no entitlement to personal reliefs. Employers must remit PCB by the 15th of the following month and issue Form EA to each employee annually for use in their personal tax filing. For a full overview of tax rates, residency rules and personal reliefs, see the taxation introduction guide.

What statutory leave costs must Malaysian employers factor into payroll?

Beyond base salary and statutory contributions, Malaysian employers must budget for several leave-related cost obligations under the Employment Act 1955. Paid annual leave accrues based on length of service with the same employer:

Less than 2 years of service: 8 days per year
2 to 5 years of service: 12 days per year
More than 5 years of service: 16 days per year

Employees are also entitled to 11 paid public holidays per year, paid sick leave of 14 to 22 days depending on tenure, 98 consecutive days of paid maternity leave and 7 days of paid paternity leave per confinement up to five confinements. Unused annual leave must be taken within 12 months of accrual and paid out upon termination, creating a contingent liability that should be provisioned from the point of hire. For a full breakdown of employment costs including minimum wage obligations, see the employee costs guide.

What are the payroll filing and payment deadlines in Malaysia?

Malaysian payroll compliance involves recurring obligations across multiple agencies, all sharing the same monthly deadline. EPF contributions must be submitted by the 15th of the following month through the KWSP i-Akaun portal. SOCSO and EIS contributions are due by the same date through the PERKESO Assist portal. PCB income tax must also be remitted to LHDN by the 15th of the following month.

At year end, employers must issue Form EA to each employee and submit Form E to LHDN, both by the last day of February. Late contributions attract penalties including a 6% per annum late payment charge for SOCSO and EIS, and late PCB remittances are subject to a 10% penalty on the outstanding amount. For a broader overview of employer obligations under the Employment Act, see the employment and labour law guide.

When does a foreign company need to run a local payroll in Malaysia?

A Malaysian payroll obligation arises when a foreign company employs workers in Malaysia under Malaysian employment contracts, regardless of whether a local entity exists. Directing and supervising staff in Malaysia without a registered presence risks creating a permanent establishment (PE) under the Income Tax Act 1967, which can trigger corporate tax exposure in addition to payroll non-compliance.

Foreign companies typically resolve this by registering a local entity before hiring or by engaging staff through an employer of record arrangement, which allows compliant employment without an entity. For guidance on entity options and the considerations involved, see the hiring employees in Malaysia guide.

What termination costs are Malaysian employers required to pay under the Employment Act?

Employers must provide written notice of termination or pay wages in lieu of notice. Statutory minimum notice periods under the Employment Act 1955 are four weeks for employees with less than two years of service, rising to eight weeks for more than five years.

Employees retrenched after at least 12 months of continuous service are entitled to termination benefits under the Employment (Termination and Lay-Off Benefits) Regulations 1980, calculated at a minimum of 10 to 20 days of wages per year of service depending on tenure. These statutory benefits apply to employees earning up to RM 4,000 per month. Higher earners rely on the terms of their employment contract. Employers must notify the Department of Labour before retrenching employees and follow a fair selection process to avoid unfair dismissal claims. For a full overview of termination procedures and severance obligations, see the employment and labour law guide.

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Payroll outsourcing services in Malaysia.