SME Legal Risk Guides

New Employee Onboarding and Statutory Registration Checklist Malaysia

When you hire an employee in Malaysia, you must register them with EPF within 7 days, and with SOCSO and EIS within 30 days. If they are chargeable or likely to become chargeable to income tax, you must also notify LHDN using Form CP22 within 30 days. Miss the EPF deadline specifically, and directors can face personal liability, not just the company.

Five mistakes we see most often

1.Registering with SOCSO and EIS on time but missing the EPF deadline. EPF employer and employee registration is due within 7 days of hire, not 30 days like the other schemes.
2.Assuming a probationary or part time employee is exempt from statutory registration. Coverage starts from day one regardless of probation status or employment type.
3.Assuming Form CP22 applies to every new hire. It only applies to employees who are chargeable or likely to become chargeable to income tax, and it is a separate filing from setting up Monthly Tax Deduction (MTD/PCB) in payroll.
4.Assuming the foreign worker EPF obligation is still optional or partial. It has been mandatory since October 2025 wages for most valid work pass categories, excluding foreign domestic workers, at 2 percent employer and 2 percent employee.
5.Assuming HRD Corp levy registration is optional. Once a business reaches 10 or more Malaysian employees, registration and the 1 percent levy are compulsory regardless of whether it intends to claim training grants. Foreign employees do not count toward this threshold.

Check your own position

Register the employee with SOCSO within 30 days. EIS registration applies to Malaysian citizens and permanent residents, not foreign employees.

Submit Form CP22 to LHDN within 30 days, where the employee is chargeable or likely to become chargeable to income tax.

Set up Monthly Tax Deduction (MTD/PCB) in payroll before the first salary run.

If hiring a non citizen, confirm mandatory EPF registration applies, and check any separate approval or notification requirements under the Employment Act 1955 with a lawyer before proceeding. This area has additional rules beyond EPF and SOCSO.

Confirm HRD Corp registration status once the business reaches 10 Malaysian employees. Foreign employees do not count toward this threshold.

Issue a compliant Letter of Offer or Employment Contract, and a Form EA by the last day of February the following year.

Keep signed copies of all statutory registration confirmations in the employee's personnel file.

Quick answers

Do I need to register a part time or contract employee for EPF and SOCSO?

Yes, statutory registration applies regardless of employment basis, subject to narrow exceptions.

Does every new hire need a CP22 filing?

No, only employees who are chargeable or likely to become chargeable to income tax. It is a separate filing from setting up Monthly Tax Deduction (MTD/PCB).

Do foreign employees need EPF registration?

Yes, since October 2025, EPF contributions are mandatory for most foreign employees holding a valid work pass, excluding foreign domestic workers, generally at 2 percent employer and 2 percent employee.

Is HRD Corp levy registration compulsory?

Yes, once a business has 10 or more Malaysian employees, registration and the levy are compulsory regardless of whether it plans to claim training grants. Foreign employees are excluded from this headcount.

Can directors be personally liable for unpaid EPF contributions?

Yes, under Section 46 of the Employees Provident Fund Act 1991, directors, including former directors who held office during the period the contributions became due, can be held jointly and severally liable with the company.

Not sure if your onboarding paperwork is compliant?

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