Malaysia flag Malaysia: Operating a Business in Malaysia

Work conditions in Malaysia

The Active Population in Figures

	2018	2019	2020
Labour Force	15,523,126	15,780,716	15,904,215

Source: International Labour Organization, ILOSTAT database

	2017	2018	2019
Total activity rate	68.00%	68.54%	68.64%
Men activity rate	80.34%	80.85%	80.94%
Women activity rate	54.81%	55.39%	55.49%

Source: International Labour Organization, ILOSTAT database

Employed Persons, by Occupation (% of Total Labour Force)	2015
Wholesale and retail trade; repair of motor vehicles and motorcycles	16.8%
Manufacturing	16.5%
Agriculture, forestry and fishing	12.5%
Construction	9.3%
Accommodation and food service activities	8.2%
Education	6.4%
Public administration and defence; compulsory social security	5.3%
Administrative and support service activities	4.5%
Transportation and storage	4.4%
Human health and social work activities	4.1%
Professional, scientific and technical activities	2.6%
Financial and insurance activities	2.5%
Information and communication	1.5%
Mining and quarrying	0.7%
Arts, entertainment and recreation	0.6%
Water supply; sewerage, waste management and remediation activities	0.5%
Real estate activities	0.5%
Electricity, gas, steam and air conditioning supply	0.4%

For Further Statistics: ILO, Laborsta Malaysia
For Further Information About the Labour Market: International Labour Organisation

Working Conditions

Legal Weekly Duration: 48 hours a week.
Retirement Age: There is no legal age for retirement in the private sector even if the EPF (Employment Provident Fund) considers people are eligible from 55 for men and 50 for women.
Working Contracts: Called "Contract of Service" or "Contract of Employment", the contract is deemed to exist as soon as the employee starts to work. There are fixed-term contracts and open-ended contracts.
Labour Laws: Consult Doing Business Website, to obtain a summary of the labor regulations that apply to local entreprises.

Cost of Labour

Minimum Wage

According to the government data, the minimum wage was MYR 1,500 per month in 2022.

Average Wage

Average montly salary for employees: MYR 2,933; median montly salary: MYR 2,062 (source: Department of Statistics Malaysia, 2020).

Social Contributions

Social Security Contributions Paid By Employers: Employees’ Provident Fund (EPF) :

below 60 years of age: 12% for income up to MYR 5,000, 13% for income equal or above MYR 5,000
age 60 and above: 4%

Employment Injury Insurance Scheme (EIIS) and Invalidity Pension Scheme (IPS): based on the employee’s monthly wages, up to a maximum of MYR 69.05 for the employer.

Employment Insurance System (EIS) : 0.2% (capped at MYR 4,000 per month, and up to a maximum of MYR 7.90).
Social Security Contributions Paid By Employees: Employees’ Provident Fund (EPF) :11% or 5.5% (depending on the age)

Employment Injury Insurance Scheme (EIIS) and Invalidity Pension Scheme (IPS): based on the employee’s monthly wages, up to a maximum of MYR 19.75 for the employee.

Employment Insurance System (EIS) : 0.2% (capped at MYR 4,000 per month, and up to a maximum of MYR 7.90).

Social Partners

Social Dialogue and Involvement of Social Partners: There are two national organisations: the Malaysian Trade Union Corporation (MTUC) and the Congress of Unions of Employees in the Public and Civil Service (CUEPACS).
Labour Unions: National Union of Journalists Malaysia
Unionisation Rate: 9.5% of workers are unionized.
Labour Regulation Bodies: Ministry of Human Resources

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