Deadlines at a glance
| Step | Deadline | Where |
|---|---|---|
| Written contract (with a termination clause) | Before work starts (recommended practice) | Your own document |
| Register the employee with EPF | Within 7 days of starting | KWSP i-Akaun (Employer) |
| Register the employee with PERKESO (SOCSO and EIS) | Within 30 days of hiring | PERKESO ASSIST portal |
| Stamp the employment contract (signed from 1 Jan 2026, pay above RM3,000 a month) | Within 30 days of signing | LHDN MyTax (self-assessment) |
| Form TP3 (if they had another employer this year) | When they join, before the first payroll | Kept by you for PCB |
| EPF contributions | By the 15th of the following month | KWSP i-Akaun |
| SOCSO and EIS contributions | By the 15th of the following month | PERKESO portal |
Do I have to give a written employment contract?
Under section 10 of the Employment Act 1955, a contract for a fixed period of more than one month, or for a piece of work that may take more than one month, must be in writing and must say how either side can end it. A written contract is also what you stamp and what you rely on in a dispute.
Oral contracts are still valid in law, but without one in writing it is hard to prove the agreed notice period, leave or job scope.
When must a new employee be registered with EPF?
Within 7 days of the employee's start date. Employers register members online in KWSP i-Akaun (Employer) using the employee's MyKad number, and pay contributions every month by the 15th of the following month.
EPF is mandatory for Malaysian citizens and permanent residents. Since October 2025 wages it is also mandatory for most foreign employees with a valid passport and work permit, at 2% of monthly wages from the employer and 2% from the employee; domestic workers are excluded. Late registration or payment is an offence under the EPF Act.
When must a new employee be registered with SOCSO and EIS?
PERKESO says new employees must be registered within 30 days of being hired. Registration is done in the PERKESO ASSIST portal, and SOCSO and EIS contributions are paid together by the 15th of the following month.
PERKESO now identifies employees by their MyKad number. For foreign workers or a first registration, the portal steps can differ; check the current forms on the PERKESO site.
What about PCB and Form TP3?
PCB is the monthly tax deduction from salary. If the new employee worked for another employer earlier in the same year, ask them for Form TP3 with that income and tax, so their PCB is calculated correctly from the first payroll.
Do employment contracts need stamp duty?
For contracts signed from 1 January 2026, yes if the monthly wage is above RM3,000: RM10 per contract, assessed and paid by the employer through LHDN's MyTax portal within 30 days of signing, under the stamp duty self-assessment system. Contracts with wages of RM3,000 a month or less are exempt.
The RM3,000 exemption was announced in Budget 2026 and legislated through the Finance Act 2025. Contracts signed before 2025 were exempted, and late-stamping penalties for contracts signed in 2025 were waived if stamped by 31 December 2025. Check with LHDN or your tax adviser how the RM3,000 is measured (basic pay or total wages).
How HireNow keeps track
In HireNow, accepting an offer and starting a new employee create these tasks automatically: issue the written contract, stamp it, register with EPF, SOCSO and EIS, collect Form TP3 and set up PCB. Each has a due date and an owner, with reminders before it is due. The rules are stored with effective dates so they can change when the law does, and are awaiting review by a Malaysian employment lawyer.
Questions
How many days do I have to register a new employee with EPF?
7 days from the employee's start date. Register them in KWSP i-Akaun (Employer) and pay their first contribution by the 15th of the following month.
How many days do I have to register a new employee with SOCSO?
PERKESO says within 30 days of hiring the employee. Registration is through the PERKESO ASSIST portal and covers SOCSO and EIS.
Is stamp duty required on employment contracts in Malaysia in 2026?
Only where the monthly wage is above RM3,000. For those contracts, signed from 1 January 2026, the employer self-assesses and pays RM10 per contract through LHDN's MyTax portal within 30 days of signing. Contracts paying RM3,000 a month or less are exempt.
Does a contract of employment have to be in writing in Malaysia?
Under section 10 of the Employment Act 1955, a contract for more than one month, or for work that may take more than one month, must be in writing and must include how either party can end it.
Sources
- PERKESO, Registration
- Labour Department of Peninsular Malaysia, Employment Act 1955 (Act 265)
- 3E Accounting, EPF account registration for employers
- PayrollPanda, Malaysian employer's EPF guide
- UOB Malaysia, Budget 2026: stamp duty
- Baker McKenzie, Stamp duty exemption for employment contracts under MYR 3,000
- LHDN, Feedback on the joint memorandum on Budget 2026 and the 2025 tax bills
- PERKESO, PERKESO booklet (contributions)
- Bernama, EPF: mandatory contributions for foreign workers from October 2025
- The Vibes, LHDN to enforce stamping of employment contracts from 2026
Last checked 8 October 2026 by Avantix Innovation. General information, not legal or tax advice.