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FAQEmployer of Record BasicsWhat is an Employer of Record (EOR) service in Malaysia?

What is an Employer of Record (EOR) service in Malaysia?

Last updated: May 22, 2026

What is an EOR?

An Employer of Record (EOR) is a third-party company that legally employs workers on behalf of another business. The EOR becomes the official employer on paper, handling employment contracts, payroll, statutory contributions, and compliance, while the client company retains full control over the employee's day-to-day work and responsibilities.

This arrangement allows businesses to hire talent in a country without needing to incorporate a local legal entity, which can take months and requires ongoing corporate maintenance.

How it works in Malaysia

MalayHire operates as the EOR through its third-parties. When you use MalayHire:

  • MalayHire handles EPF, SOCSO, EIS registration and monthly remittances
  • MalayHire processes monthly payroll and issues payslips to employees
  • You direct the employee's work via a Master Service Agreement with MalayHire
  • You receive one consolidated monthly invoice covering salaries, contributions, and the MalayHire service fee