Statutory Compliance with PayrollPanda
Businesses in Malaysia are required to work within a specific legal framework outlined by the Malaysian government. This framework entails a collection of regulations related to employment, taxation, environmental standards, employee health and safety, data protection, compliance requirements, and business licensing.
Some key regulations that govern employment law in Malaysia include:
- Employment Act 1955: This act governs the terms and conditions of employment including employee working hours, leave entitlements, and employment termination.
- Industrial Relations Act 1967: This act governs the relationship between employers and employees concerning dispute resolution and trade union matters.
- Employees Provident Fund Act 1991: Under this act, employers and employees are mandated to contribute to the Employees Provident Fund (EPF) for retirement savings.
- Employees’ Social Security Act 1969 (SOCSO): SOCSO ensures that employees are provided social security protection in case of employment injuries, invalidity, and death.
- Income Tax Act 1967: This act covers employee and business taxation including corporate tax rates, personal income tax, and tax filing requirements.
- Personal Data Protection Act 2010 (PDPA): Businesses in Malaysia are required to ensure the privacy and protection of personal data in commercial transactions.
For running payroll in Malaysia, businesses are required to comply with state regulations related to wages, contributions and taxation. The following poster provides a breakdown of how you can run automate payroll in compliance with LHDN regulations using PayrollPanda.
