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  • Writer's pictureRajvin Singh Gill

What we do: Payroll Statutory Compliance Services in Malaysia

Updated: Mar 9

If you’re a foreign company looking to hire an external service provider to manage and ensure adherence to the legal and regulatory requirements related to payroll in Malaysia, then this Article is for you.


We at Rajvin Gill & Co understand how commonplace this practice is and how foreign companies find it challenging to navigate the complex landscape of Malaysian Employment and Tax laws. Below are some of the services our Firm provides in this domain:


Understanding and Interpreting Laws

Being advocates & solicitors i.e. professional legal advisors, we are responsible and have the expertise for staying updated on the relevant labour laws, tax regulations, and statutory requirements related to payroll in Malaysia. Essentially, we interpret laws and advise you on a day-to-day basis in ensuring that payroll processes align with the Malaysian legal framework.


Compliance with Employment Laws

At Rajvin Gill & Co, we assist in ensuring compliance with Malaysia's employment laws, including the following:

(a)           Employment Act 1955;

(b)           Employees Provident Fund Act 1991;

(c)           Social Security Act 1969;

(d)           Employment (Restriction) Act 1968;

(e)           Minimum Wages Order 2020;

(f)            Payment of Wages Act 1947;

(g)           Industrial Relations Act 1967;

(h)           Employment (Termination and Lay-off Benefits) Regulations 1980

Essentially, we provide guidance on matters such as working hours, leave entitlements, and termination procedures to ensure that payroll practices adhere to legal requirements.


Tax Compliance

Malaysia has specific tax regulations that affect payroll, such as the Income Tax Act 1967. We at Rajvin Gill & Co are able to provide guidance on income tax deductions, exemptions, and reporting obligations. Our Firm has the expertise to help organizations comply with tax laws to avoid penalties and legal consequences.


EPF (Employees Provident Fund) and SOCSO (Social Security Organisation) Compliance

We guide employers in complying with mandatory contributions to EPF and SOCSO by ensuring that the appropriate deductions are made from employees' salaries and that the employer's contributions are made in accordance with statutory rates. Foreign Companies should take note that the Malaysian authorities take such deductions very seriously and severe penalties are typically imposed on employers for non-compliance.


Audit Support

In the event of a government audit or investigation, the Firm plays a crucial role in assisting organizations. We help gather necessary documentation, ensure that payroll processes are transparent and compliant, and provide support in addressing any issues raised during audits.


Advisory on Changes in Legislation

Pertinently, our team of attorneys keep organizations informed about any changes in employment or payroll-related legislation. They provide timely advice on how these changes may impact payroll processes and assist in updating policies and procedures accordingly.


Conclusion

In summary, we at Rajvin Gill & Co understand the challenges a foreign company may face in navigating the legal complexities pertaining to statutory compliance in Malaysia. The Firm plays a pivotal role in mitigating legal risks, ensures compliance, and allows businesses to focus on their core operations with confidence in their payroll processes.


Contact us at rajvin@rajvingill.com or +6012-6582798 to enquire further.



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