Best Practices to Manage Payroll and HR in Malaysia
HR and payroll management in Malaysia involves handling various aspects of employee administration like employee recruitment, compensation, benefits, compliance with labor laws and payroll processing.
Companies need to ensure that their HR policies adhere to local labor laws. In Malaysia, the Employment Act 1955 governs employment terms for minimum wage, working hours, leave and termination. It is also compulsory for companies to register their employees with contribution schemes like EPF (Employees Provident Fund) and SOCSO (Social Security Organization) for retirement saving and social security protections.
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However, payroll and HR management in Malaysia comes with a fair number of challenges, which can include:
- Staying updated with regulatory changes
- Maintaining data security
- Employee recruitment and retention
- Timely payroll processing
For efficient HR management, companies can conduct regular audits, foster a positive work environment and use technology to automate payroll processes. To learn more about the best HR and payroll practices, download the following poster.
