Minimum Wages in Malaysia 2025: What Employers and Employees Need to Know As we approach 2025, the discussion on minimum wages in Malaysia continues to take center stage for employers, employees, and policymakers. Ensuring fair wages while balancing economic growth is a key priority for the Malaysian government. In this article, we will explore the new Minimum Wages Order 2024 […]
Working hours play a vital role in the employment landscape, shaping how businesses operate and ensuring a balanced work-life environment for employees. In Malaysia, working hours are regulated under the Employment Act 1955, which ensures that employees are not overworked while still maintaining productivity. Whether you’re an employer or employee, understanding the rules governing working hours, overtime, and rest days […]
Malaysia’s Prime Minister, Datuk Seri Anwar Ibrahim, unveiled the 2025 Budget with numerous changes directly impacting HR, payroll, and taxation systems. Here’s a breakdown of the most relevant updates for employers and HR professionals, focusing on social security, wages, employee welfare, tax incentives, and training programs. 1. Social Security Organisation (SOCSO) Updates The Self-Employment Social Security Scheme will continue covering […]
Effective October 1, 2024, employers in Malaysia must adhere to updated contribution tables for the Social Security Organisation (SOCSO) and Employment Insurance System (EIS). This update raises the wage ceiling for contributions from RM5,000 to RM6,000 per month. Employees earning more than RM5,000 will now have their contributions capped at the new ceiling of RM6,000. This change is aimed at […]
Employment contracts are vital documents that establish the terms and conditions of the working relationship between employers and employees. In Malaysia, these contracts are governed by the Employment Act 1955 and other relevant labor laws. This article provides a detailed overview of employment contracts in Malaysia, highlighting essential elements for both parties to ensure a clear, fair, and legally compliant […]
Organizations rely on various tools and systems to streamline operations and manage resources efficiently. Two of the most commonly discussed systems in this context are Enterprise Resource Planning (ERP) and Human Resource Management System (HRMS). While both are important to modern business operations, they serve different purposes. Understanding their differences can help businesses determine which system suits their needs better. […]
Effective management of human resources is a must for any organization aiming to thrive in today’s competitive environment. Choosing the right HR system can simplify processes, boost efficiency, and enhance employee satisfaction. In this article, we explore the three main HR systems—Human Resources Information System (HRIS), Human Resource Management System (HRMS), and Human Capital Management (HCM). Each system has unique […]
In managing employee relationships, two essential documents often come into play: the Employee Handbook and the Employment Contract. While both are integral to workplace management, they serve different purposes. Understanding the differences between these two documents can help clarify both employer and employee rights and obligations in Malaysia. 1. Purpose 2. Legal Enforceability 3. Scope 4. Modifiability 5. Content 6. […]
The main function of SOCSO is to provide social security protection to employees and their dependents through the Employment Injury and the Invalidity Scheme.
The Employees Provident Fund (EPF) is a key pillar of Malaysia’s retirement savings scheme, providing financial security for individuals in their retirement years. Besides its role in retirement planning, the EPF also offers significant tax benefits, allowing contributors to reduce their taxable income. Understanding how EPF contributions work, including the tax exemptions available, is crucial for both employees and the […]
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