Employment Solutions Tailored For Your Business Growth
What are the main differences between EOR and PEO services in Malaysia?
An EOR becomes the sole legal employer and lets you hire without a local entity. A PEO works on a co-employment model and needs you to already hold a registered Malaysian entity.
Four differences decide the model:
- Local entity: EOR employs through its own Malaysian company. PEO requires your entity to be registered with SSM.
- Legal employer: EOR owns the employment contract outright. PEO shares it with you as co-employer.
- Liability: EOR carries labour law, statutory, and tax liability. PEO leaves the underlying liability with your company.
- Payroll: EOR funds and files under its own registrations. PEO processes payroll that your entity funds and reports.
No entity yet, takes EOR services in Malaysia. Entities already running take PEO services in Malaysia. We deliver both and move clients between them without breaking continuity of employment.
What Do Our EOR Services in Malaysia Cover?
Our EOR services in Malaysia cover the full employment lifecycle. As your employer of record, we assume every legal responsibility of employing your staff:
- Payroll Administration: Timely and accurate processing ensures employee satisfaction.
- Employee Benefits Management: Competitive packages that attract and retain talent.
- HR Compliance: Assured adherence to all local employment laws and regulations.
- Employment Contracts: Preparation and maintenance of legally sound documentation.
- Tax and Statutory Contributions: Expert management of employee tax obligations and mandatory contributions.
With InCorp Malaysia as your EOR, retain direct control over your team while we expertly manage the background processes.
What Do Our PEO Services in Malaysia Include?
Our PEO services in Malaysia give your Malaysian entity a full HR function. You stay the legal employer; we run payroll, filing, and compliance:
- Efficient Payroll Processing: Innovative systems for error-free payroll management.
- Skilled Benefits Administration: Expert design and administration of benefits plans.
- HR Compliance Support: Proactive measures to minimise risk and ensure legal compliance.
- HR Professional Access: Direct contact with our dedicated HR experts when you need it.
- Scalable Solutions: Adaptable services that grow in alignment with your company.
Our PEO assistance empowers you to leverage top-tier HR capabilities for smarter, cost-effective management.
What is The Legal compliance for using an Employer of Record in Malaysia?
Hiring through an EOR is a lawful route into Malaysia. The EOR is the official employer and carries the local obligations while you direct the work.
Compliance sits with us across four areas:
- Registration and monthly payment of EPF, SOCSO and EIS
- Monthly Tax Deduction filed with LHDN in ringgit
- Contracts aligned to the Employment Act 1955, including the 45-hour work week, 98 days maternity leave and 7 days paternity leave
- Overtime paid at statutory premium rates and capped at 104 hours a month
If any of these is missed, the exposure sits with the employing entity.
Why Partner with InCorp Malaysia?
Regional Expertise
In-depth knowledge of HR management in Malaysia and beyond, across 9 countries.
Specialised Teams
Access to professional HR specialists committed to your business’s success.
Customised Strategies
Solutions orchestrated to meet the unique demands of your enterprise.
Reliable Service Record
A history of providing high-quality, dependable employment services.
Devotion to Excellence
We’re invested in nurturing long-standing relationships built on client satisfaction.
Drive Your Business Forward with InCorp Malaysia
Begin your journey to optimised HR performance today. Reach out to InCorp Malaysia and set the stage for a comprehensive consultation. Together, we will strategise to unlock new potential for your business and elevate your industry standing.
FAQs about EOR and PEO Services in Malaysia
What is EOR in Malaysia?
- An EOR in Malaysia is a third-party company that acts as the official legal employer for your workers, so you can hire local talent without registering a subsidiary. It signs Employment Act-compliant contracts, runs payroll, files EPF, SOCSO, EIS and PCB, and manages benefits. You keep full operational control of the work.
- The choice depends on whether you already hold a registered Malaysian entity. No entity, choose EOR: you hire remote staff in days, avoid permanent establishment exposure, and pass employer liability to us. Entity in place, choose PEO: you keep your own contracts, policies and hiring decisions while we run payroll and statutory filing.
- Market management fees in Malaysia typically run between USD 100 and USD 600 per employee each month. On top of that, you fund gross salary plus statutory contributions, which add roughly 13 to 17 percent. Deposits, expatriate work pass fees and medical cover are quoted separately. We price every element of the quote transparently.
- A PEO gives an SME a full HR function without the headcount. You get accurate EPF, SOCSO, EIS and PCB filing, current Employment Act practice, and lower overhead than an in-house payroll team. Pooled buying power also opens group medical and benefits that a small employer cannot secure alone. Owners get their time back.
- Startups can choose between global platforms such as Deel, Multiplier and Remote, and Malaysia-based specialists such as InCorp Malaysia. Global platforms suit pure remote hiring. Local specialists suit founders who also need incorporation, tax and immigration under one roof. Ask whether the provider owns its own Malaysian entity. InCorp Malaysia does.
