Hand payroll to people who know EPF and PCB
We calculate salaries every month, prepare payslips and the EPF, SOCSO, EIS and PCB payment files, and remind you to pay before the deadline. The year-end EA forms and Form E are prepared too.
Outsourced payroll in Malaysia means a bookkeeping team calculates your employees' salaries and statutory deductions every month, prepares payslips, and prepares the EPF (KWSP), SOCSO (PERKESO), EIS and PCB (monthly tax deduction, MTD) payment files so the employer can pay by the 15th of the following month. BookKeeper's payroll service starts from RM15 per employee a month, with a minimum of RM100 a month. EA forms and Form E are prepared at year end.
- EPF, SOCSO, EIS and PCB must all be paid by the 15th of the following month.
- EPF: employee 11%, employer 13% (salary RM5,000 a month or less) or 12% (above RM5,000).
- Minimum wage is RM1,700 a month; for employers with fewer than 5 employees it applies from 1 August 2025.
- EA forms must reach employees by the end of February, and Form E must be submitted by 31 March.
- Payroll service from RM15 per employee a month, minimum RM100 a month. The Pro plan includes 10 employees.
The night of the 14th, and one PCB still not done
Six staff at the shop. Two local, four foreign. One got a raise last month, one took unpaid leave.
The clerk who handles salaries opens Excel, then the KWSP and PERKESO websites, then LHDN's e-PCB. By the third person, she notices last month's SOCSO may have missed a new hire.
A salary looks like one number. Behind it are four agencies, several rates and one deadline. When these calculations go to people who do them every day, the chance of mistakes drops a lot.
What does outsourced payroll include?
Outsourced payroll: handing monthly salary calculations, statutory deductions and the related forms to an outside team, while the employer keeps the final say on approval and payment.
Monthly salary calculation
Basic pay, overtime, commission, allowances and unpaid leave deductions, calculated by your rules and sent to you for approval before salaries are paid.
Payslips
A clear payslip for each employee, showing earnings, deductions and employer contributions.
EPF, SOCSO and EIS payment files
Employer and employee portions calculated at the latest rates, payment files prepared, and a reminder sent before the deadline.
PCB (MTD)
Employees' monthly tax deductions calculated, with the details the LHDN system needs prepared so you can pay before the deadline.
New hires and resignations
The details needed to register new employees for EPF and SOCSO, and final salaries and related forms for leaving employees.
Year-end EA forms and Form E
EA forms prepared for you to give employees by the end of February, and Form E prepared for submission by 31 March.
After outsourcing payroll, who pays EPF and PCB?
The employer always pays. The bookkeeping team calculates the amounts, prepares the payment files and reminds you before the 15th of the following month. You pay through the KWSP, PERKESO and LHDN systems, or as agreed in the service agreement.
The benefit of this split is that the money stays in your company account, and you press the final button. The team is responsible for correct figures, complete files and timely reminders.
Once payment is done, send the payment records back to the team, and salaries and contributions are recorded in your accounts.
| Task | Bookkeeping team | Employer (you) |
|---|---|---|
| Provide this month's changes | Sends a checklist reminder | Provides them before month end |
| Salary and statutory deduction calculation | Responsible | Reviews and approves |
| Payslips | Prepares | Gives them to employees |
| EPF, SOCSO, EIS and PCB payment files | Prepares and reminds of deadlines | Pays through the official systems, or as agreed in the service agreement |
| Salary transfers to employees | Can prepare a bank bulk payment file | Transfers from the company account |
What statutory contributions does an employer pay?
Every month an employer handles four statutory payments: EPF, SOCSO, EIS and PCB. PCB (MTD) is income tax deducted from employees' salaries each month, which the employer deducts and pays on their behalf.
| Item | Employer | Employee | Remarks |
|---|---|---|---|
| EPF | 13% (salary RM5,000 a month or less); 12% (above RM5,000) | 11% | Foreign workers: from October 2025, employer and employee 2% each |
| SOCSO (first category) | About 1.75% | About 0.5% | Wage ceiling RM6,000 |
| EIS | 0.2% | 0.2% | Wage ceiling RM6,000 |
| PCB (MTD) | Deducts and pays on employee's behalf | Based on income and reliefs | Set by LHDN |
EPF, SOCSO, EIS and PCB must all be paid by the 15th of the following month. The minimum wage is RM1,700 a month, effective 1 February 2025; for employers with fewer than 5 employees it applies from 1 August 2025.
If your company is in a covered industry and has 10 or more Malaysian employees, you also pay a 1% HRD Corp levy (Human Resources Development Fund). Ask an accountant to confirm whether it applies, using your company's details.
Sources: KWSP (EPF), PERKESO (SOCSO, EIS), LHDN (PCB, Form E)
How does the monthly process work?
Send changes at month end
Tell us about any raises, overtime, leave, new hires or resignations this month, using a simple form or WhatsApp.
Calculation and checking
The team calculates salaries, statutory deductions and PCB, and sends you the payroll summary to approve.
Pay salaries after you approve
You transfer salaries to employees from the company account, and payslips go out at the same time.
Pay by the 15th
The team prepares the EPF, SOCSO, EIS and PCB payment files and reminds you of the deadline. You pay through the official systems, or as agreed in the service agreement.
Recording
Salaries and contributions are recorded in your accounts, so your bookkeeping and payroll figures match.
Say you run a car workshop in Rawang and have just hired your first mechanic at RM2,300 a month. You thought paying the salary was enough, then found out you need to register an employer number, pay EPF at 13% and 11% each month, plus SOCSO and EIS, and check whether PCB must be deducted.
Setting all this up before your first hire is far easier than paying arrears later. Start with payroll obligations before you hire your first employee.
Do it yourself, ask a clerk, or outsource?
For companies with fewer than 10 employees and no one dedicated to payroll, outsourcing is usually the least hassle. The table below helps you decide.
| Approach | Suits | Watch out for |
|---|---|---|
| Owner does it | 1 to 2 employees on fixed salaries | Easy to miss rate and rule changes |
| Clerk does it on the side | You already have a clerk and few staff changes | If the clerk is on leave or resigns, no one takes over payroll |
| Outsourced payroll | 3 to 50 employees, with foreign workers or overtime and commission | You must send monthly changes on time |
| In-house HR system | Many employees and a dedicated HR team | Higher system and staffing costs |
How much does outsourced payroll cost?
The payroll service starts from RM15 per employee a month, with a minimum of RM100 a month. If you choose the Pro bookkeeping plan (from RM880 a month), payroll for 10 employees is already included.
The above is a starting price; the final price follows the quotation. Prices exclude service tax. If the service provider is SST-registered, 8% is added. See the pricing page for details.
Who is it for, and who is it not quite for?
- 1 to 50 employees, with no dedicated HR or payroll staff
- Both local and foreign employees, on different rates, and you worry about errors
- Frequent overtime, commission or shift work, with many monthly changes
- You already outsource bookkeeping and want the same team to handle payroll and accounts
If your company already has a full HR system and a dedicated payroll person, outsourcing adds little. Also, employment disputes and termination compensation fall under labour law, so consult the Labour Department or a lawyer.
Payroll usually works best alongside monthly bookkeeping, and the same data is used for year-end tax filing support.
Tell us how many employees you have and the local and foreign mix, and we will estimate your monthly fee first.
WhatsApp Us About PayrollQuestions you may still have
Tap a question to see the answer. Can't find yours? Just ask us.
Ask on WhatsAppWhen must EPF, SOCSO, EIS and PCB be paid?
All four must be paid by the 15th of the following month. For example, contributions for October salaries must be paid by 15 November.
After outsourcing payroll, who pays the statutory contributions?
The employer pays. The bookkeeping team calculates the amounts, prepares the EPF, SOCSO, EIS and PCB payment files and reminds you before the deadline. You pay through the KWSP, PERKESO and LHDN systems, or as agreed in the service agreement.
How much EPF does the employer contribute?
Employees contribute 11%. Employers contribute 13% for employees earning RM5,000 a month or less, and 12% for those earning above RM5,000. For foreign workers, from October 2025 the employer and employee each contribute 2%.
What is the current minimum wage?
RM1,700 a month, effective 1 February 2025. For employers with fewer than 5 employees, it applies from 1 August 2025.
How much does outsourced payroll cost?
From RM15 per employee a month, with a minimum of RM100 a month. The final price follows the quotation and excludes service tax. The Pro bookkeeping plan already includes payroll for 10 employees.
Who sees my employees' salary information?
Only the staff handling your company's payroll. How the information is sent and to whom is agreed with you before we start. See the privacy policy for details.
