HR Outsourcing Overview (Malaysia)

In Malaysia, HR outsourcing refers to the delegation of HR functions to a professional third-party provider that specialises in payroll processing, compliance management, recruitment, and employee administration.

For many SMEs, managing HR internally creates hidden risks:

• Non-compliance with labour laws
• Payroll errors and late statutory submissions
• Inconsistent HR documentation
• High overhead cost for HR staff and systems

By outsourcing HR to PakarHR, businesses gain immediate access to experienced HR professionals, proven systems, and up-to-date regulatory knowledge—without the burden of permanent headcount.

Why Malaysian Businesses Outsource HR

1. Cost Efficiency & Predictable HR Expenses
Hiring and retaining an in-house HR team involves recruitment costs, training, salaries, software, and compliance tools. HR outsourcing converts these fixed costs into manageable, predictable service fees.

2. Compliance with Malaysian Labour Laws
Malaysia’s employment regulations are complex and frequently updated. PakarHR ensures full compliance with:

• Employment Act 1955 (amended)
• EPF, SOCSO & EIS regulations
• JTKSM employment standards
• Statutory reporting and documentation

This significantly reduces the risk of penalties, disputes, and audits.

3. Focus on Core Business Growth
Outsourcing HR removes administrative burdens, allowing business owners and management teams to focus on sales, operations, and expansion rather than paperwork and HR issues.

Core HR Outsourcing Services by PakarHR

Payroll Outsourcing & Statutory Compliance
We manage end-to-end payroll processing, including:

• Salary and overtime calculations
• EPF, SOCSO, EIS contributions
• PCB / tax coordination
• Payslips, reports, and submissions

Accuracy, timeliness, and compliance are guaranteed.

Recruitment & Employee Onboarding
Finding the right talent is critical for SME growth. Our recruitment services include:

• Candidate sourcing and screening
• Interview coordination
• Employment offer documentation
• Structured onboarding process

This ensures faster hiring and better retention.

HR Administration & Employee Records
We handle all essential HR administration, including:

• Employee records and contracts
• Leave and attendance management
• Disciplinary documentation
• HR policy alignment with Malaysian regulations

All processes comply with guidelines from Jabatan Tenaga Kerja Semenanjung Malaysia (JTKSM).

HR Outsourcing for SMEs in Malaysia

For SMEs, HR outsourcing provides enterprise-level HR capability without enterprise-level cost.

Key Advantages for SMEs:

• Scale workforce up or down easily
• Avoid hiring full-time HR staff
• Professional handling of employee issues
• Reduced compliance and legal risks
• Consistent HR processes from day one

Whether you employ 5 staff or 200, HR outsourcing allows your business to operate with professional HR governance.

PakarHR’s HR Outsourcing Approach

At PakarHR, we act as your strategic HR partner, not just a service provider.

Our Experience & Expertise

• Serving Malaysian SMEs across multiple industries
• Deep understanding of local labour laws and HR practices
• Proven HR systems and secure data management