Payroll

Navigating Payroll Processing for Small Businesses in Malaysia

Managing payroll is one of the most critical — and often challenging — responsibilities for small business owners in Malaysia. From complying with statutory requirements like EPF, SOCSO, EIS, and PCB, to handling leave, overtime, and payslip generation, payroll processing involves more than just paying salaries. It requires accuracy, timeliness, and a sound understanding of ever-evolving local regulations.

This collection of articles and tips is designed specifically for small business owners and payroll administrators in Malaysia. Whether you’re handling payroll in-house or using outsourced services, you’ll find practical guidance to help streamline your processes, avoid common pitfalls, and stay compliant with Malaysian labour and tax laws.

Understanding Malaysian Payroll

Whether you’re a small business owner, HR executive, or payroll officer, understanding the components that go into salary calculation—and complying with statutory requirements—is crucial.

This guide breaks down everything you need to know about Malaysian payroll, including basic pay, allowances, overtime, bonuses, deductions, and statutory contributions like EPF, SOCSO, and PCB.

Overtime Entitlement under Malaysia’s Employment Act 1955

Overtime refers to any work performed beyond the normal working hours as defined in the Employment Act.

Learn who is entitled to overtime pay in Malaysia, applicable rates, definitions, and key exceptions under the Employment Act 1955 (updated for 2023).