Business
Malaysia — Business: Hiring Employees
The Employment Act 1955 now covers nearly all employees regardless of salary level, including executives, managers, and professionals previously partially exempt. The RM1,700 minimum wage (RM8.72/hour) is strictly enforced across all sectors entering 2026, regardless of company size. Standard working hours are capped at 45 hours/week, with at least one rest day weekly (or 30 consecutive hours for shift workers). Employment contracts exceeding one month must be documented in writing, though verbal contracts remain legally binding in specific circumstances. The Act prohibits discrimination based on gender, religion, race, and disability in recruitment, terms, promotion, and termination. Stricter expatriate hiring rules take effect from June 2026.
Key facts
- Employment Act 1955 now covers nearly all employees regardless of salary, including executives/managers/professionals.
- Minimum wage: RM1,700/month (RM8.72/hour), strictly enforced across all sectors from 2026.
- Standard hours cap: 45 hours/week, plus 1 weekly rest day (or 30 consecutive hours for shift workers).
- Contracts exceeding 1 month must be in writing; discrimination based on gender/religion/race/disability is prohibited.
- Stricter expatriate hiring rules take effect June 2026.
Costs
- Minimum wage: RM1,700/month (RM8.72/hour)
Timelines
- Stricter expatriate hiring rules effective: June 2026
Required documents
- Written employment contract (for engagements exceeding 1 month)
Common mistakes
- Assuming senior/managerial employees fall outside Employment Act coverage — the Act now applies to nearly all employees regardless of salary or seniority.