13th month pay
in Malaysia.

Start hiring in Malaysia

Hire and pay talents
with Horizons in
180+ countries

[hiring_sidebar]

Is there a 13th month pay in Malaysia?

Whilst a 13th-month bonus is not mandatory in Malaysia, it is customary for employers to pay a “13th-month” payment at the end of the year. This will be stipulated within the employment contract.

How is the 13th month pay calculated in Malaysia?

The calculation varies between companies and individual employment agreements but generally, the calculation usually divides the total basic salary by 12.

How is the 13th-month pay calculated in Malaysia?

The calculation varies between companies and individual employment agreements but generally, the calculation usually divides the total basic salary by 12.

Does the 13th month salary amount to any extra payment by the employer?

13th-month Pay is usually paid before the calendar year’s end as part of employee benefits packages.

Is the 13th month salary taxable in Malaysia?

13th-month pay is usually exempt from any taxation, but payments over the one-twelfth denomination of the employee’s basic salary may be indeed subject to tax.

Hire borderless talent with Horizons

Hiring in Malaysia, Made Easy

Although 13th-month payment is not compulsory in Malaysia many employees expect performance-based bonuses, such as sales commissions.

FAQs

Is the 13th month pay required by law or standard in Malaysia?

Although 13th-month payment is not compulsory in Malaysia many employees expect performance-based bonuses, such as sales commissions.

Success stories from businesses we’ve helped enter and grow in new markets.

Client Testimonials

"As a seed-stage, London-based startup, we were initially hesitant to expand internationally due to the administrative workload involved. Horizons took the headache out of the process, allowing us to hire a team of software engineers in Germany."

Gabor SzedlakCo-founder & COO at MindLabs (UK)

"I truly appreciated the thoroughness and the professionalism of Horizons personnel while we hired internationally with them. They were knowledgable on all subject matters pertaining to international employment."

Gary PaskyVP Software Development, PICS ITech (USA)

"On deciding to begin commercial activities in Asia Pacific, we needed a provider to handle the employment and remuneration of our workforce. With Horizons the result was fast, efficient, and fit-for-purpose. We recommend Horizons as an EOR provider.”

Chris MorrellManaging Director, Schaeffler Group (Germany)

"The collaboration with the Horizons team is excellent. Both our local employee as well as our HQ in Germany are more than pleased with the support provided and the simplicity of the service. We can highly recommend the Horizons solution to anyone."

Christoph EngelbertCo-Founder & CTO, Clevabit (Germany)

"We needed an EOR that could provide expert support for payroll in APAC. We are pleased with Horizons’ expertise and the fact that they are flexible, responsive, and easily accessible from Belgium. They were able to provide services within the short timeline we required."

Katia FlamandHuman Resources, Devian Chemicals (Belgium)