Guide · Updated 2026
The Complete Guide to Payroll & HR in Malaysia (2026)
Everything Malaysian employers need to run compliant, stress-free payroll and HR — in one place. From PCB, EPF, SOCSO and EIS calculations to choosing the right HR software, this guide brings together the statutory rules, the buyer's checklist, and the honest comparisons you won't find on a vendor's own pricing page.
Reviewed by Marketing Kakitangan.com · Last updated 17 July 2026
BDO Audited
PDPA Compliant
ISO Certified
Malaysia's Statutory Payroll Compliance
Everything Malaysian employers need to run compliant, stress-free payroll and HR — in one place. From PCB, EPF, SOCSO and EIS calculations to choosing the right HR software, this guide brings together the statutory rules, the buyer's checklist, and the honest comparisons you won't find on a vendor's own pricing page.
SOCSO
PERKESO
- Table-based, not flat %
- RM6,000 wage ceiling (from Oct 2024)
- Employer ≈1.75%, employee ≈0.5%
- New: SKBBK ("Lindung 24 Jam") — 24-hr non-work-accident cover from June 2026. Employee-funded: 0.75% → 1.0% → 1.25% phased by tenure, same RM6,000 ceiling; employer's 1.75% unchanged.
- Voluntary for Malaysians/PRs — can opt out by 31 Aug 2026 via LINDUNG Faedah Portal. Mandatory for foreign workers (no opt-out).
PCB
Potongan Cukai Bulanan
- Monthly tax withholding to LHDN
- Based on income, reliefs, dependents
- Not a savings/insurance contribution
Source: LHDN (Lembaga Hasil Dalam Negeri Malaysia)
HRD CORP
HRD Levy (formerly HRDF)
- Mandatory: 10+ Malaysian employees, most sectors — 1% of basic wage + fixed allowances
- Optional: 5–9 employees — 0.5%; exempt below 5
- Employer-borne only — cannot be deducted from employee wages
- Covers Services, Manufacturing, Mining & Quarrying, Construction, Agriculture & Forestry (post-2021 PSMB Act amendment); govt bodies, statutory bodies & NGOs excluded
- Non-compliance: fine up to RM10,000 and/or up to 1 year imprisonment
All five are due by the 15th of the following month. EPF late charges: dividend rate + 1% p.a. SOCSO/EIS late payments: ≈6% p.a. interest. HRD Corp non-compliance: fine up to RM10,000 and/or up to 1 year imprisonment.
How to Choose HR Software in Malaysia
The right HR software should update statutory rates automatically, publish transparent per-employee pricing, and scale with your headcount — not just look good in a demo. Here's what to actually check before you shortlist a vendor.
1
Does it auto-update EPF/SOCSO/EIS/PCB rates when the government changes them?
2
Does it generate EA Forms and the matching CP8D file automatically?
3
Is pricing per-employee and published — or "contact us for a quote"?
4
Does support know Malaysia's 15th-of-month statutory deadlines?
5
Does it scale from 10 to 100+ employees without re-platforming?
6
Does the vendor offer real training and education — or does support stop at a login screen?
The Only HR Software in Malaysia With a BDO Security & PDPA Audit
Most HR software asks you to take "compliant" on faith. Kakitangan is the only HR software provider in Malaysia independently audited by BDO for security and PDPA due diligence — on top of ISO/IEC 27001:2022 certification and LHDN approval.
Audit
BDO-Audited
- Independent security & PDPA due diligence audit
- Only HR software provider in Malaysia with one
Certified
ISO/IEC 27001:2022
- Certificate ISMS 00618
- Covers product & managed services
Compliant
PDPA-Aligned
- Internal data handling policies aligned to Malaysia's PDPA
Approved
LHDN Approved
- Recognized for statutory payroll processing
Kakitangan.com Feature Breakdown
What Modules You Actually Get
Payroll
- One-click payroll runs
- Auto EPF/SOCSO/EIS/PCB calculation on current PERKESO/LHDN tables
- Auto-generated EA Form & CP8D
Leave
- Integrated leave management
- Employment Act tenure-based entitlement applied automatically
Consultation
HR Sifu
- HRDC-certified trainers
- Live HR & payroll consultants — not just a help article
Security
- BDO-audited, ISO/IEC 27001:2022 (ISMS 00618)
- PDPA-aligned, dedicated data centre
Related HR Management Guides
Frequently Asked Questions (FAQ)
See it for yourself.
Book a free demo and see how Kakitangan.com handles PCB, EPF, SOCSO and EIS automatically.
