If LHDN has issued your company a CP38 notice, you have a legal obligation to act — and act correctly. Unlike the regular PCB (MTD) that employers calculate each month, CP38 is an additional tax deduction order issued directly by LHDN, instructing you to deduct a specified extra amount from an employee’s salary. This guide explains what CP38 is, when […]
If you’re an employer, payroll officer, or employee in Malaysia, understanding how Potongan Cukai Bulanan (PCB) works is essential. The PCB Calculator Malaysia 2026 allows employers and employees to estimate the monthly income tax deducted from salaries based on the latest LHDN (HASiL) tax rules. Whether you’re processing payroll or checking your take-home pay, using the official calculator helps ensure […]
One of the most common questions among employers and expatriates is: can you transfer an employment pass from Malaysia to another company? The short answer is no. Employment Passes in Malaysia are not transferable between employers. However, there is a structured process that allows expatriates to change employers by applying for a new Employment Pass, subject to approval by Malaysian […]
Hiring foreign talent in Malaysia comes with strategic advantages, but many employers underestimate the true cost of an Employment Pass (EP). Beyond official government fees, there are multiple hidden costs, compliance requirements, and optional agency charges that can significantly impact your budget. This guide provides a clear, structured breakdown of Employment Pass Malaysia costs, helping employers make informed, compliant, and […]
When hiring or engaging foreign professionals in Malaysia, one of the most common points of confusion for employers is choosing between an Employment Pass Malaysia and a Professional Visit Pass (PVP). While both passes allow foreign nationals to legally enter Malaysia for work-related purposes, they serve very different functions, come with distinct eligibility requirements, and carry separate compliance risks if […]
Update (13 July 2026): Participation in LINDUNG 24 JAM (SKBBK) is voluntary for Malaysian employees but remains mandatory for foreign employees. Malaysian Employees May Opt Out from 13 July to 31 August 2026Malaysian employees who do not wish to participate are required to complete the online declaration and release of liability through PERKESO’s portal. Upon completion, employees should download and […]
When the year-end approaches, many HR teams face the same question: what do we do with employees’ unused annual leave? Can employers simply let it expire? Are they obligated to carry it forward? Can they pay it out instead? And what does the Employment Act 1955 actually say? This guide gives you the definitive answer — covering the statutory position, […]
The statutory entitlement is 7 consecutive days for each qualifying confinement, restricted to 5 confinements, regardless of the number of spouses. To qualify, the employee must be legally married, must have been employed by the same employer for at least 12 months before starting paternity leave, and must notify the employer at least 30 days before the expected confinement or […]
Every year, Malaysian taxpayers have the opportunity to reduce their taxable income by claiming eligible personal tax reliefs. Planning your expenses throughout the year can significantly reduce the amount of income tax payable when filing your annual tax return. Following Budget 2026, several existing tax reliefs have been expanded, while certain temporary reliefs have also been reintroduced to encourage spending […]
The Ministry of Home Affairs (MOHA) has announced a new expatriate employment policy aimed at strengthening local talent development while maintaining Malaysia’s competitiveness as an investment destination. Under this new policy, the minimum salary requirements and employment duration for Employment Pass (EP) Categories I, II, and III have been revised. These changes will take effect on 1 June 2026, allowing […]