12 Best Payroll Software in Malaysia (Updated 2024)

In Malaysia’s fast-paced business environment, where the median monthly salaries and wages rose by 9.1% in 2021, implementing efficient payroll software is not just a luxury, but a necessity. With automated machinery expected to handle 52% of work tasks by 2025, including roles in payroll and administration, companies must invest in efficient payroll software to stay competitive.

Yet, many businesses still grapple with outdated manual processes that are prone to errors, non-compliance, and inefficiencies. The absence of robust payroll software can lead to significant problems such as inaccurate salary disbursements, legal penalties for non-compliance, and a considerable waste of time and resources that could otherwise be invested in strategic growth.

This article aims to guide Malaysian businesses through the labyrinth of payroll solutions, offering insights and data-driven analysis to aid in selecting of the best payroll software that aligns with their operational needs and compliance requirements.

Why Malaysian Companies Must Use Payroll Software?

Before reviewing the top payroll software options in Malaysia, we’ll provide a concise overview of payroll software, its uses, and the significance of integrating such software into Malaysian businesses’ operational workflows.

Adopting HR payroll systems is becoming increasingly essential for Malaysian companies looking to streamline their operations and enhance profitability.

Payroll software is a system that automates the complex and time-consuming task of managing employee compensation, ensuring accuracy and compliance with Malaysia’s intricate tax laws and employment regulations.

By leveraging these digital solutions, businesses can avoid the pitfalls of manual payroll processing, which is prone to errors and can result in costly compliance issues, potentially leading to government fines.

The consequences of not utilizing payroll software can be significant. Manual processes are not only labour-intensive but also increase the risk of miscalculations. These errors can lead to employee dissatisfaction, legal complications, and financial penalties, all of which can negatively impact a company’s bottom line and reputation.

Furthermore, the time spent on manual payroll could be better invested in strategic initiatives that drive business growth.

It is widely acknowledged that using payroll software can lead to considerable time and cost savings. These efficiencies translate into a more streamlined operation, allowing companies to allocate resources more effectively and focus on core business activities that can enhance profitability.

In summary, Malaysian companies that embrace payroll software stand to gain a competitive edge through improved accuracy, compliance, and operational efficiency. Those who do not may be disadvantaged, facing increased risks and missed growth opportunities.

As the business environment continues to evolve, the strategic implementation of payroll software will be a key differentiator in the success of Malaysian enterprises.

12 Payroll Software Recommendations for Businesses in Malaysia

Having established the importance of payroll software for enhancing efficiency and profitability within Malaysian companies, we now focus on a carefully curated list of the best payroll solutions available in the market.

This selection is designed to guide you through all the options of HR and payroll software available, ensuring that you can choose the software that best suits your business needs.

1. HashMicro Payroll Software

HashMicro is a dynamic and robust ERP solution that over 1,750 world-class enterprises have adopted. With a suite of over 40 modules or software solutions, HashMicro caters to a diverse range of industries, ensuring that their software can be customized and integrated with third-party applications or existing systems.

Their list of clients includes prominent names across various sectors, demonstrating the versatility and reliability of their solutions. HashMicro Payroll Software stands out for its ability to be tailored to the specific needs of each client, offering a personalized approach to payroll and HR management for businesses in Malaysia.

The software’s flexibility allows it to serve a vast array of clients, ensuring that whether you’re in retail, F&B, manufacturing, or any other industry, HashMicro has the expertise to optimize your payroll operations.

Best features:

• Payroll management: Automates salary calculations based on work hours, overtime, and attendance, ensuring accurate and timely payroll processing.
• Employee database: Centralizes personal and financial employee data, providing a single source of truth for all HR-related information.
• Expense management: Streamlines the tracking and reimbursing of employee expenses, reducing administrative burden and improving financial oversight.
• Attendance management: Utilizes smart technology to accurately track employee attendance, integrating with payroll for precise salary computations.
• Leaves management: Simplifies the leave application and approval process, ensuring compliance with company policies and labour laws.
• Employee on/off-boarding: Manages the entire lifecycle of an employee from recruitment to separation, ensuring a smooth transition at every stage.

Strengths:

• Unlimited users: No limitation in adding users over time without additional cost.
• Comprehensive solution: Offers various modules for various HR functions, making it a versatile tool for businesses.
• Customization: The software can be tailored to fit specific business needs, providing a personalized user experience.
• Integration: Capable of integrating with third-party applications and existing systems, ensuring seamless operations.
• Automated reminders: Sends automated reminders for important payroll tasks, enhancing efficiency.
• Security: Prioritizes data security, reducing the risk of breaches and unauthorized access.

Weaknesses:

• Complexity: The extensive features may overwhelm smaller businesses or those new to such comprehensive systems.

These points highlight HashMicro’s capability to provide a robust and secure payroll management system while noting areas where users may need additional support or time to utilize the system’s capabilities fully.

After learning the best features and strengths of HashMicro’s payroll software, you may wonder how the system could help your business needs. If you want to explore more, you can contact our expert team and ask for free demo access.

2. PayrollPanda

PayrollPanda simplifies the payroll process for Malaysian companies. It’s an LHDN-approved system that allows business owners and HR managers to run payroll efficiently with just a few clicks. The software is designed to be user-friendly, requiring no training, and it streamlines payroll tasks to save time and effort.

Best features:

• Streamlined payroll: Complete payroll in minutes without manual calculations.
• Compliance: Keeps up-to-date with the latest Malaysian laws and requirements.
• Automated processes: Automates payslips, statutory contributions, and tax calculations.
• User-friendly interface: Designed for ease of use without needing in-depth training.
• Cloud-based: Accessible anywhere, ensuring data is backed up and always current.
• Detailed reporting: Provides insights into labor costs and resource allocation.

Strengths:

• Integration with QuickBooks: Seamless financial management with popular accounting software.
• Employee self-service: Staff portal for managing leaves and downloading payslips.
• Expert support: Access to a support team for assistance.

Weaknesses:

• Limited customization: It may not offer as much customization as some larger, more complex systems.
• Focus on SMEs: While it’s excellent for small to medium enterprises, larger organizations might require more robust features.

3. Swingvy

Swingvy offers modern HRMS software for Malaysian businesses that centralizes essential HR functions into one seamless platform, including payroll, leave management, claims, and time & attendance. It is designed to streamline people operations while reducing operating costs, particularly for CEOs and HR managers who wish to automate their HR workflow.

Best features:

• Comprehensive HRMS: Integrates payroll, leave, time, claims, and reimbursements.
• Mobile accessibility: Provides a mobile app for on-the-go HR management.
• Statutory compliance: Ensures compliance with Malaysian statutory requirements like EPF, SOCSO, EIS, HRDF, and PCB.
• Bank integration: Supports local bank GIRO for easy salary payments.
• Automated tax filings: Certified by LHDN for automated tax calculations and filings.

Strengths:

• User-friendly interface: Simplifies HR processes with an intuitive design.
• Automation: Reduces administrative workload through automation.
• Customer support: Offers dedicated support for any issues or queries.
• Scalability: Suitable for growing companies with expanding HR needs.

Weaknesses:

• Focus on SMEs: It may not cater to the specific needs of very large organizations.
• Feature limitations: Some users may require more advanced features that are not available.

4. Talenox

Talenox is a cloud-based HRIS system in Malaysia designed to manage payroll, leave, and store employee information efficiently. It’s tailored for ease of use, allowing companies to handle HR tasks with minimal effort and maximum accuracy.

The platform is known for its simplicity and is particularly suitable for small to medium-sized enterprises (SMEs) looking to streamline their HR processes.

Best features:

• Cloud-based system: Accessible from anywhere, ensuring flexibility and continuity.
• Flexible payroll options: Supports various payment schedules and caters to different types of workers.
• Automatic calculations: Localized for Malaysia, it automates tax and statutory contributions calculations.
• Integrated modules: Profiles, Payroll, and Leave modules are interconnected for real-time data updates.
• Compliance: Updated with the latest labor regulations for hassle-free HR management.
• Payroll reports: Provides strategic insights with just a few clicks.

Strengths:

• Integration with accounting software: Compatible with Xero and QuickBooks Online.
• Employee self-service: Employees can access payslips and manage leave easily.
• Expert support: Offers customer support and free Knowledge Centre resources.
• Beginner-friendly: Designed to be straightforward, even for those without an HR background.

Weaknesses:

• Customization limits: May not offer extensive customization for unique business needs.
• Scalability: While it’s scalable, very large enterprises might require more complex features.

5. Kakitangan

Kakitangan provides seamless payroll management software, ensuring on-time payroll administration with a single click. It is designed to be highly secure and regulatory compliant, offering a robust system for employers and employees to manage payslips and distributions efficiently.

Best features:

• Simple integration: Supports all banks in Malaysia and multiple accounting software integrations.
• Compliance assured: Regular updates for statutory and bank compliances, PDPA audited by BDO.
• Configurable & integrated modules: Streamlines HR operations with a single platform.

Strengths:

• Highly secure: Data is stored in a world-class data center, ensuring top-notch security.
• Automated payroll management: Administers online payroll services with ease and security.
• Premium support: Offers premium on-call support for any assistance needed.
• Integration: Works well with banks and accounting software for simplified operations.

Weaknesses:

• Customization: Customization may have limitations for unique business requirements.
• Scalability: While it is scalable, larger enterprises may require more complex features.

6. Employment Hero

Employment Hero is designed to automate recruitment, HR, payroll, and benefits, providing a comprehensive business solution. It’s recognized for helping companies manage employees efficiently, focusing on simplifying and automating payments.

The platform is cloud-based and offers a suite of tools for the entire employee lifecycle, from onboarding to offboarding.

Best features:

• Automated payroll: Streamlines payroll management with LHDN-approved software.
• HR integration: Offers an all-in-one HR software that simplifies leave management.
• Mobile app: Manage payroll online using a mobile app for convenience.
• Statutory compliance: Automated MTD/PCB and statutory contribution calculations.
• Employee self-service: Empowers employees to manage their profiles and submit requests.
• Smart integrations: Compatible with popular accounting software like Xero, Zohobooks, and Netsuite.

Strengths:

• User-friendly: Intuitive interface that simplifies payroll management.
• Compliance: Ensures adherence to Malaysian statutory requirements.
• Scalability: Suitable for businesses of various sizes.
• Customer support: Provides dedicated support for users.

Weaknesses:

• Complexity for small businesses: It may be too complex for very small businesses.
• Learning curve: New users may require time to familiarize themselves with all features.

7. HR2eazy

HR2eazy is a software for payroll integrated with an HR management system designed to streamline HR processes and improve efficiency for businesses of all sizes. It offers over 30 modules to choose from, covering general HRMS, financial management, performance management, and more.

The software is tailored to increase efficiency, reduce costs, and save time, making it a suitable choice for various industries, including retail, F&B, manufacturing, construction, education, healthcare, and government.

Best features:

• Comprehensive HRMS: A wide array of modules for complete HR management.
• Offline access: Mobile app functionality even without internet access.
• Customization: Extensive customizations to match unique business workflows.
• Automated workflows: Integrated workflows for general HR and payroll, manpower planning, succession planning, and asset management.

Strengths:

• All HR needs in one platform: Offers a broad selection of modules for diverse HR requirements.
• Accessibility: Ensures system accessibility through mobile apps and laptops.
• Automated integrated workflows: Facilitates core activities like general HRMS and asset management.
• Complete payroll solutions: Maintains compliance and generates multiple bank advice for salary disbursement.

Weaknesses:

• Complexity: The extensive features may be overwhelming for smaller businesses.
• Customization overload: While customization is a strength, it can also be complex and time-consuming to set up.

8. Sage Payroll Software

Sage Payroll is known for its streamlined payroll processes and standard documentation through pre-determined HR templates. It increases efficiency and productivity by handling resource and payroll issues effectively. The software complies with local legislation, ensuring businesses stay updated with the latest regulations.

Best features:

• Legislation compliance: Keeps up with local laws and regulations.
• HR templates: Provides standard documentation for HR processes.
• Efficiency: Streamlines payroll processes for better productivity.
• Visibility: Offers complete control over payroll management.

Strengths:

• Support and training: Offers support and training to help businesses utilize the software effectively.
• Integration: Works well with other business systems for a cohesive workflow.

Weaknesses:

• Complexity: It may be complex for small businesses or those new to payroll software.
• Cost: It could be a significant investment for smaller companies.

9. Zoho Payroll Software

Zoho Payroll is one of the notable payroll systems in Malaysia. It offers a suite of services that automate payroll calculations, ensure statutory compliance, and facilitate collaboration across teams. It’s built to handle everything from payroll processing to pension and gratuity management, making it a comprehensive solution for businesses looking to streamline their HR and payroll systems.

Best features:

• Automated payroll processing: Setup once and let Zoho Payroll manage all payroll activities.
• Statutory compliance: Handles PF, PT, ESI, LWF, IT, and more for full compliance.
• Secure access controls: Allows collaboration across departments with complete control.
• Integrated accounting: Seamlessly integrates with Zoho Books for streamlined payroll accounting.
• Employee self-service portal: Enables employees to organize and download crucial payroll documents.
• Payroll reports: Provides detailed reports that offer insights into payroll costs.

Strengths:

• End-to-end payroll management: Zoho Payroll covers all core payroll work from onboarding to payroll administration.
• Tax compliance: Configures tax withholdings and exemptions for accurate tax calculations.
• Attention to detail: Ensures every aspect of the payroll cycle is managed with precision.
  Employee management: Centralizes employee records for easy access and updates.

Weaknesses:

• Geographic limitations: While it supports multiple countries, some features may be tailored more towards specific regions.
• Complexity: The comprehensive nature of the software might present a learning curve for new users.

10. BrioHR Payroll

BrioHR Payroll is designed to simplify all HR processes, providing a secure and scalable platform that covers the entire employee journey from recruitment to onboarding, payroll, claims, performance, analytics, and more. It’s maintained by a community of experts to customize and support HR processes, enabling business owners and HR teams to focus on what matters most – their people.

Best features:

• A cloud-based platform: Ensures secure, scalable, and accessible HR management.
• Comprehensive HR management: Offers over 30 modules for various HR functions.
• Employee self-service: Empowers employees with a portal for HR-related tasks.
• Statutory compliance: Keeps up-to-date with Malaysian statutory regulations and requirements.

Strengths:

• All-in-one solution: Provides a complete suite of HR tools in one platform.
• Customization: Tailored support and customization by HR experts.
• User-friendly: Intuitive design for ease of use and efficiency.
• Support and guidance: Offers a free detailed guide to managing payroll in Malaysia.

Weaknesses:

• Complexity for smaller businesses: It may be too comprehensive for very small enterprises.
• Adaptation time: New users may require time to utilize the extensive features offered fully.

11. Info-tech Payroll

Info-Tech Payroll offers an all-in-one payroll software in Malaysia that integrates payroll with attendance, leave, and claim software. It is designed to automate payroll calculations and reduce the risks of incorrect payments, making it a reliable tool for businesses of all sizes.

KWSP, LHDN, SOCSO, and the majority of Malaysian banks, including Interbank GIRO, approve the software for salary transfers.

Best features:

• Cloud-based: Ensures data is always accessible and secure.
• Comprehensive integration: Combines payroll with attendance, leave, and claim management.
• Statutory compliance: Approved by major Malaysian government bodies for seamless statutory contributions.
• Automated back-up: Provides automatic back-up at scheduled timings.
• Customizable reports: Allows for tailored payroll reports to suit business needs.

Strengths:

• Ease of use: User-friendly interface that simplifies payroll management.
• Flexibility: Supports payroll management of multiple companies within one software.
• Security: Data is stored in a world-class data center for top-notch security.
• Support for multiple users: Allows concurrent multi-user access with specific rights.

Weaknesses:

• Complexity for smaller businesses: It may be overwhelming for smaller enterprises due to its extensive features.
• Adaptation time: New users may require time to adapt to the full range of functionalities.

12. Ramco Paycework

Ramco Paycework offers a unified solution for payroll, core HR, and time & attendance, designed to manage the complexities of payroll processing for global enterprises with multi-country footprints. It’s equipped with innovative solutions like chatbots, facial recognition, and voice-based user interfaces with Google Assistant & Alexa to enhance the employee experience.

Best features:

• Global coverage: Supports payroll for over 50 countries, including Malaysia.
• Local compliance: Incorporates all taxation laws for Malaysia, managing EPF, SOCSO, and Employee Income Tax.
• Innovative technology: Features like facial recognition and voice-based UI.
• Mobile accessibility: Complete visibility of payroll & workforce information on mobile, tabs, and desktops.

Strengths:

• Multi-language support: Offers local language support, including Malay, Mandarin, Bahasa, Thai, and Arabic.
• Local statutory requirements: Compliant with over 20 Malaysian statutory requirements, including Zakat, Tabung Haji, HRDF, KWSP, and PTPN.
• User experience: Focuses on providing a great user experience with innovative technology integrations.
• Scalability: Tailored for enterprises with operations in multiple countries.

Weaknesses:

• Complexity: The extensive features may be complex for smaller businesses or those new to such comprehensive systems.
• Adaptation: The innovative features may require a learning curve for users to utilize the system’s capabilities fully.

How to Choose The Right Payroll Software for Your Business

Choosing the right payroll software is a critical decision for Malaysian companies, as it can significantly impact the efficiency and compliance of their payroll operations. Here are some key considerations to keep in mind:

• Understand your needs: Before selecting a payroll system, assess your business needs, including company size, payroll complexity, and compliance demands, to determine the appropriate solution’s scale and features.
• Compliance with Malaysian laws: Choose payroll software that automates compliance with Malaysian employment laws, including contributions to EPF, SOCSO, EIS, and LHDN, and adapts to legislative updates.
• Software credibility: Verify the software’s credibility through reviews from Malaysian businesses on platforms like G2, Capterra, and Software Advice to gauge its performance and reliability.
• Ease of use: The software should have an intuitive interface that is easy to navigate. Consider your team’s learning curve and whether the software provider offers training and support.
• Integration capabilities: Consider how well the software integrates with your existing systems, such as HR management and accounting software. Seamless integration can save time and reduce errors.
• Security: Payroll data is sensitive, and the software must have strong security measures in place to protect against data breaches and ensure confidentiality.
• Scalability: Choose software that can grow with your business. It should be able to handle an increasing number of employees and more complex payroll structures without significant changes.
• Support and maintenance: Look for a software provider with excellent customer support and regular updates. This will ensure that you have help available when needed and that your software remains current.
• Trial periods and demos: Take advantage of free trials and demos. This hands-on experience can help you understand if the software meets your needs and is user-friendly.

By carefully considering these factors, companies can select the best payroll software in Malaysia that meets their current needs, supports their growth, and adapts to future challenges. Remember, the right payroll software is an investment in your company’s operational excellence and compliance.

Conclusion

Selecting the right payroll software is a pivotal step for any Malaysian business aiming to streamline payroll processes, ensure compliance, and enhance overall efficiency. As we’ve explored, the ideal solution should be user-friendly, compliant with local laws, secure, and scalable to meet the growing demands of your business.

HashMicro’s payroll software emerges as a standout choice, meeting all these criteria with its robust features, extensive customization options, and strong client base. The solution grows with you, offering peace of mind and reliability.

We encourage you to experience the difference firsthand by accessing HashMicro’s free demo today. Discover how it can transform your payroll management into a seamless, stress-free process. Start your journey towards a smarter payroll system now!

FAQ about Payroll Software

• How does payroll software handle statutory compliance in Malaysia?

  Payroll software in Malaysia ensures compliance with local statutory requirements such as EPF (Employees Provident Fund), SOCSO (Social Security Organization), and LHDN (Inland Revenue Board of Malaysia) deductions. These systems are designed to automatically calculate and deduct the necessary contributions and generate the required forms (e.g., Form E, EA). This automation helps businesses avoid errors and penalties associated with manual processing.

• Can payroll software manage multi-country payroll requirements?

  Some payroll software solutions like HashMicro’s are designed to handle multi-country payroll needs. They support various currencies and comply with the respective country’s tax and payroll regulations. This is particularly useful for multinational corporations with employees in different countries, ensuring seamless payroll processing across borders.

• How does payroll software integrate with other HR and accounting systems?

  Payroll software often integrates with other HR and accounting systems to streamline business operations. For instance, many solutions are compatible with accounting software, enabling seamless data transfer and synchronization. This integration helps maintain accurate financial records and simplifies processes such as leave management, time tracking, and expense claims.

• What features do employee self-service portals in payroll software offer?

  Employee self-service (ESS) portals in payroll software allow employees to manage their own information, such as viewing payslips, applying for leave, and updating personal details. This feature enhances efficiency by reducing the administrative workload on HR departments and empowers employees to access their payroll information anytime. Some advanced ESS portals also support mobile access and real-time updates.

• What are the security measures implemented in payroll software?

  Payroll software in Malaysia incorporates several security measures to protect sensitive employee and company data. These include SSL encryption, secure cloud hosting, and compliance with data protection laws such as the Personal Data Protection Act (PDPA). Additionally, many systems provide secure login features and regular updates to safeguard against security threats.