Malaysia has been quietly collecting regional headquarters for two decades. It sits inside ASEAN, signed both RCEP and CPTPP, and hosts shared services for firms that never built a factory here. English runs through commercial life, so contracts and payslips are normally issued in it. World Bank data puts the population at 35.98 million in 2025, with the economy growing 5.2 percent; labor-force series come from the Department of Statistics. What makes payroll outsourcing Malaysia a live question is the paperwork underneath. The Employment Act 1955 governs, and four separate statutory contributions run alongside it: EPF, SOCSO, EIS and PCB.
Why Businesses Choose Payroll Outsourcing in Malaysia
The four-part statutory stack is why most finance teams stop running this in-house. EPF, the retirement fund, is the heavy one. Employer contributions are 13 percent for staff earning up to MYR 5,000 a month, 12 percent above that. Employees pay 11 percent, with no wage ceiling. Non-citizens joined EPF at 2 percent each side in the October 2025 phase-in. SOCSO takes roughly 1.75 percent from the employer and 0.5 percent from the employee; EIS takes 0.2 percent from each. Both stop at a MYR 6,000 wage ceiling, lifted from MYR 4,000 in October 2024. Prices that stack before comparing payroll services Malaysia quotes.
Income tax works differently here, in a way that catches people out. It is withheld monthly as PCB and remitted to LHDN on Form CP39; non-residents pay a flat 30 percent. Employers with 10 or more Malaysian staff add the 1 percent HRD Corp training levy. Everything falls due by the 15th of the following month, and each year brings EA Forms and Form E. Add the 45-hour week and the MYR 1,700 minimum wage. The appeal of payroll outsourcing services in Malaysia is fairly obvious.
Two 2026 changes belong in any comparison. Since 1 January, every employment contract must be stamped electronically through LHDN’s MyTax portal. Salaries of MYR 3,000 or below are exempt; above that, a flat MYR 10 duty falls due within 30 days. An unstamped contract cannot be relied on in court. SOCSO’s Lindung 24 Jam scheme, mandatory from 1 June, was then made voluntary for Malaysian employees by Cabinet decision on 8 July. It stays compulsory for foreign workers and is funded wholly by employee deduction, so a PEO Malaysia provider now runs two rules in one payroll.
The models are worth separating. Under payroll outsourcing, the employment contract never leaves you; only the sums and the filings do. Co-employment requires your own Malaysian Sdn Bhd. An Employer of Record uses the provider’s Sdn Bhd instead, so you hire with no entity. So when a professional employer organization Malaysia company is advertised, the EOR variant is nearly always what is meant. My employer of record Malaysia page has the details. Citizens and permanent residents are hired directly. Foreign nationals need an Employment Pass from the Expatriate Services Division. Salary floors rose on 1 June 2026 to MYR 20,000 for Category I and MYR 10,000 for Category II.
I reviewed 10 payroll outsourcing companies in Malaysia, led by local specialists and adding three regional firms with Malaysian operations. If your plans reach further, read this beside PEO Singapore and PEO Thailand.
Top 10 Payroll Outsourcing Companies and PEO Providers in Malaysia
No global platform made this list, deliberately: the local market is deep enough to fill 10 places without one. Every payroll outsourcing company Malaysia buyers might shortlist met the same criteria. Accurate EPF, SOCSO, EIS and PCB handling. CP39 remittance by the 15th. EA Form and Form E preparation, HRD Corp levy administration, and readiness for the foreign-worker EPF phase-in.
For PEO and EOR work, I also wanted a Malaysian Sdn Bhd behind the contract and real Employment Pass capability. Clear per-employee pricing and a working self-service portal decided the rest. Recruiters, coworking operators, and pure BPO shops were left out of this list of top payroll outsourcing companies in Malaysia.
All ten providers appear in A-to-Z order. The sequence says nothing about quality, preference, or ranking.
Acclime Malaysia
Company Description:
Acclime Malaysia is the local arm of a corporate-services group present in 18 markets across Asia-Pacific. Payroll services in Malaysia sit inside a stack that also covers company formation, secretarial work, accounting, tax and advisory.
Key Specialty Area:
Entity administration with payroll alongside
Pricing and Service Models:
Priced on request, alongside whatever entity work you take.
Key Advantages:
- Payroll bought with the entity administration around it
- Publishes dated compliance updates as rules change
- Visa files handled by the same people
Scope of Services:
- Payroll outsourcing with statutory submissions and payslips
- PEO and Employer of Record engagements for entity-free hiring
- Company secretarial, accounting and tax compliance
Our Verdict
My pick when payroll is one line in a wider Malaysian entity-administration mandate.
Amaze Advisory Global
Company Description:
Amaze Advisory is a Malaysian corporate-services firm working with SMEs and foreign companies entering the market. Clients who outsource payroll services Malaysia teams handle can take incorporation, accounting, tax, immigration and EOR from the same desk.
Key Specialty Area:
Market entry with the payroll included
Pricing and Service Models:
Priced on request, usually scaled to whatever else you buy.
Key Advantages:
- Salary payments, deductions and filings run together
- Incorporation available when the EOR stops fitting
- Nominee director and global mobility offered in-house
Scope of Services:
- Payroll processing with statutory deductions and submissions
- Employer of Record hiring with no company of yours
- Accounting, tax advisory and corporate secretarial work
Our Verdict
A sensible choice for a foreign company setting up and staffing Malaysia at once.
AYP Group
Company Description:
AYP Group runs EOR, PEO and managed payroll across 13 Asia-Pacific markets as its core business. It holds its own Malaysian Sdn Bhd and says so plainly, which matters when PEO services in Malaysia are often delivered through partner networks.
Key Specialty Area:
A public price list and a Malaysian entity
Pricing and Service Models:
Published: EOR starts at $488 an employee monthly, payroll at $28.
Key Advantages:
- Prices published openly rather than held for a call
- Signs as employer through an entity it owns
- Employment Pass sponsorship through the ESD gateway
Scope of Services:
- Contracts written to the Employment Act 1955
- Managed payroll with EPF, SOCSO, EIS and PCB handled
- PEO administration for companies holding an Sdn Bhd
Our Verdict
The one to shortlist if you want a Malaysian entity behind the contract and a public price.
*As pricing is subject to change, we are listing prices as they stand in August 2026
CentralHR
Company Description:
CentralHR, operated by CNL HR Solutions Sdn Bhd, pairs payroll processing services Malaysia employers need with an HR software suite it builds itself. The payroll team is LHDN-approved and also files Employment Pass applications.
Key Specialty Area:
Its own HR software runs the payroll
Pricing and Service Models:
Priced on request; the software modules are billed separately.
Key Advantages:
- Statutory registration handled for newly incorporated companies
- Payroll, leave, claims and attendance in one login
- Employment Pass filing available from the same team
Scope of Services:
- Gross-to-net payroll with payslips and direct credit
- EPF, SOCSO, EIS, HRDF, PTPTN and Zakat submissions
- Employer registration with IRB, EPF and SOCSO
Our Verdict
Best for local employers who want payroll and HR from one vendor.
Corford Asia
Company Description:
Corford Asia, trading as Agensi Pekerjaan Corford Asia Sdn Bhd from Gaya Bangsar in Kuala Lumpur, has spent over a decade in Malaysian HR. Its outsourcing line makes it a PEO company in Malaysia as well as a recruiter for IT and AI roles.
Key Specialty Area:
Outsourcing desk sitting next to a recruiting desk
Pricing and Service Models:
Priced on request, based on headcount and services used.
Key Advantages:
- Payroll, PEO and EOR handled by one HR team
- Serves clients from small businesses through to multinationals
- Technical recruiting available for the same headcount
Scope of Services:
- Payroll outsourcing with Malaysian statutory compliance
- PEO and Employer of Record engagements
- HR administration and compliance advisory
Our Verdict
Worth a call if you are hiring technical staff and want the payroll handled too.
Evoresource
Company Description:
Evoresource, registered as Evoresource Outsourcing Sdn Bhd, works from Kuala Lumpur and Singapore with payroll as its first product. Malaysia payroll services include statutory account registration and an employee self-service portal.
Key Specialty Area:
Payroll came first, PEO followed
Pricing and Service Models:
Priced on request, on a monthly headcount basis.
Key Advantages:
- Nothing here is sold as a payroll add-on
- Registers employer statutory accounts for new companies
- Malaysian and Singaporean payroll run side by side
Scope of Services:
- Managed payroll with statutory contributions and filings
- EA Form and Form E preparation each year
- PEO cover where no client company exists yet
- HRMS access with employee self-service
Our Verdict
My pick for a company that wants payroll done properly by a specialist and nothing else.
GP Outsourcing Asia
Company Description:
GP Outsourcing Asia operates from Kuala Lumpur and Shah Alam with separate pages for Employer of Record and payroll outsourcing in Malaysia. Contact-center and language work sit beside the employment services.
Key Specialty Area:
Employment services next to outsourced operations
Pricing and Service Models:
Priced on request, once the scope is defined.
Key Advantages:
- Employment Pass and work permit handling included
- Round-the-clock contact center support available
- Company incorporation offered when you need an entity
Scope of Services:
- Payroll processing with tax and statutory compliance
- Employer of Record hiring with no legal entity
- HR compliance advisory and HR administration
- Bilingual interpretation and shared-services support
Our Verdict
Suited to companies that want employment services and outsourced operations from one supplier.
Hexa Business
Company Description:
Hexa Business is headquartered in Malaysia and works across 10 Asian markets, having started in 2002 as a telecom consultancy. It reports 14,000 EOR engagements to date, so PEO services Malaysia clients buy here are backed by real volume.
Key Specialty Area:
Ten Asian markets, thousands of placements
Pricing and Service Models:
Priced on request, pitched at cost-conscious scaling.
Key Advantages:
- More than 1,000 worksite employees under management
- Sector depth in IT, telecoms and banking
- Immigration and relocation handled end-to-end
Scope of Services:
- Employer of Record hiring across 10 Asian markets
- PEO administration covering payroll and HR compliance
- Recruitment process outsourcing for volume hiring
Our Verdict
A practical option for startups scaling headcount fast across Malaysia and its neighbors.
InCorp Malaysia
Company Description:
InCorp Malaysia, rebranding to Ascentium Malaysia, belongs to a corporate-services group covering eight Asia-Pacific markets. It is the payroll services provider Malaysia entrants often meet at incorporation, with EOR and PEO beside it.
Key Specialty Area:
Compliance across eight markets, employment among them
Pricing and Service Models:
Priced on request, folded into the compliance work.
Key Advantages:
- Incorporation and payroll bought from one provider
- Coordinated compliance across eight regional markets
- Labuan and offshore structuring available in-house
Scope of Services:
- Payroll and HR outsourcing with statutory filings
- EOR and PEO cover for firms with no Sdn Bhd
- Company incorporation, secretarial and compliance
Our Verdict
Reasonable when Malaysian payroll needs to line up with several other markets in the region.
PeopleLAKE
Company Description:
PeopleLAKE, founded in Kuala Lumpur in 2008, runs offices there and in Johor Bahru, Penang and Singapore. Its LAKE Payroll and LAKE EOR lines make Malaysia payroll outsourcing a named product rather than an extension of its recruitment desk.
Key Specialty Area:
Payroll sold as a product, not an extra
Pricing and Service Models:
Priced on request; take the whole payroll or part of it.
Key Advantages:
- Four offices across Malaysia and Singapore
- Full or selected payroll functions, your choice
- Employment-law depth from its legal recruitment practice
Scope of Services:
- Payroll outsourcing with salary calculation and payslips
- Statutory contributions, reporting and year-end filings
- PEO and EOR staffing on its own Sdn Bhd
- HR operations outsourcing and contract staffing
Our Verdict
Strong for multinationals that want payroll and contract staffing coordinated in one place.
How Much Payroll Outsourcing Costs in Malaysia
Two commercial models dominate. The common one is a fee per employee per month, almost always with a minimum monthly charge. That is why a payroll outsourcing Malaysia price looks steep at five employees and reasonable at fifty. The second is quote-based, for larger or multi-country scopes. Ask which you are being offered before comparing numbers.
The fee normally covers processing, statutory submissions, payslips and the annual EA Form and Form E. Implementation, Employment Pass filing, ad-hoc advisory and off-cycle runs are billed on top. EOR engagements are priced differently, commonly around $200 to $600 per employee monthly, because the provider carries the employment itself. AYP Group publishes $488 for EOR and $28 for payroll, inside that range. Whichever way you outsource payroll services in Malaysia, statutory employer cost of up to about 16 percent sits on top of the fee.
FAQs on Payroll Outsourcing and PEO in Malaysia
What does payroll outsourcing in Malaysia include?
The provider runs the gross-to-net calculation, processes EPF, SOCSO, EIS, and PCB, and issues payslips by email or through a self-service portal. Statutory payments go to KWSP, PERKESO and LHDN by the 15th of the following month. The HRD Corp levy is administered where it applies, and EA Forms and Form E are prepared annually. New companies can usually have their employer statutory accounts registered at onboarding.
How much do EPF, SOCSO, and EIS cost the employer?
EPF takes 13 percent from the employer for staff earning up to MYR 5,000 a month, 12 percent above that. Employees pay 11 percent with no ceiling. SOCSO adds roughly 1.75 percent and EIS 0.2 percent, both stopping at a MYR 6,000 monthly wage ceiling, which PERKESO administers. Employers with 10 or more Malaysian staff pay a further 1 percent HRD Corp levy. Non-citizens have been enrolled in EPF at 2 percent from each side since October 2025.
PEO, EOR or payroll outsourcing: which one am I actually buying?
With payroll outsourcing, the employment stays yours, and only the arithmetic and the filings move. Co-employment shares employer duties, but assumes you already have a Malaysian Sdn Bhd. An Employer of Record signs as an employer on its own Sdn Bhd, so nothing of yours is needed. Almost anything marketed as a PEO in Malaysia turns out to be that third option. The distinction is set out in my employer of record Malaysia guide.
When is a PEO better than setting up an Sdn Bhd?
When speed matters, and headcount is small. Incorporation, secretarial duties and audit obligations take months to stand up; a PEO partner in Malaysia can onboard someone in weeks. That suits market testing or a first team of two or three. An Sdn Bhd earns its keep once operations are permanent or headcount grows. It is also needed to invoice locally and hold licensed activities.
Can a provider handle Employment Passes for foreign hires?
Citizens and permanent residents go straight onto payroll. Foreign nationals need an Employment Pass, graded I to III by salary. File it through the Expatriate Services Division, or Malaysia Digital for eligible tech roles. Thresholds rose on 1 June 2026, so Category I starts at MYR 20,000, and Categories II and III need an approved local succession plan. Several providers here file passes directly, and an EOR can sponsor through its own entity. Confirm category, quota exposure and timing before signing.
How do I tell a good Malaysian payroll provider from a mediocre one?
Ask for evidence, not assurances. Accurate EPF, SOCSO, EIS and PCB handling, including the MYR 6,000 ceiling and the foreign-worker EPF phase-in. CP39 remittance by the 15th. EA Form and Form E preparation, and HRD Corp levy work. Check the two-rule Lindung 24 Jam deduction is already running correctly. Then look for a secure self-service portal and PDPA-compliant data handling. Finally, a Malaysian Sdn Bhd for PEO or EOR work, Employment Pass capability, and a minimum fee stated upfront.
Helen is Anywherer’s Market Analyst & Content Researcher, with extensive experience in analyzing global employment markets and HR technology trends. She is skilled at turning complex market data into clear, well-researched insights that inform every piece of content. With a strong grasp of the EOR, PEO, and international hiring space, Helen plays a key role in keeping Anywherer’s research accurate, up to date, and genuinely useful for readers.
