HR Compliance in Malaysia: What SMEs Must Know to Stay Protected in 2025

Regulatory compliance is critical—especially for SMEs without in-house HR teams. Non-compliance can lead to fines, audits, or legal disputes. Here’s what you need to know for 2025.

📌 Key Regulations Malaysia SMEs Must Comply With

1. Employment Act (1955) & EPF/SOCSO/EIS

Defines statutory contributions, employment terms, and filing requirements.

2. PCB (Monthly Tax Deduction)

Applies to resident employees—must be correct to avoid penalties.

3. EA Forms (Employee Annual Returns)

Must be issued for every employee by March 31.

4. CP22 / CP22A / CP21 Notifications

Required when employees join, resign, or expatriates leave.

5. PDPA (Personal Data Protection Act)

Applies to storage and handling of employee personal information.

6. Stamping Employment Contracts

Required as per Stamp Act 1949.

⏳ Common Compliance Pitfalls for SMEs

Incomplete or missing EA forms

Late statutory contributions or inaccurate PCB deductions

No documentation of onboarding or exit processes

Lack of leave/attendance tracking

Insecure data storage violating PDPA

🎯 Best Practices with HRAS from FIND Global

Automated statutory deductions for EPF, SOCSO, EIS, PCB

Timely reminders for EA forms and employee notifications

Digitized records for onboarding, contracts, and exit documentation

PDPA-compliant storage and user access controls

Dedicated support during audits and HR compliance checks

✅ Staying Ahead of 2025 Updates

Check for changes in contribution rates, leave entitlements, or payroll compliance

Use HRAS tools to schedule compliance calendar and notifications

Let's discuss your HR needs—contact us today!

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