Stamp Duty Now Mandatory for Employment Contracts — What Job Seekers and Employers Should Know
KUALA LUMPUR, 8 June 2025 — In line with new government regulations, all employment contracts in Malaysia signed from 1 January 2025 onwards must now be stamped by the Stamp Act 1949, the Inland Revenue Board (IRB) has confirmed.
This applies to both full-time and part-time hires, including local and foreign employees, at a flat stamp duty rate of RM10 per contract. Contracts involving individuals earning less than RM300 per month are exempt; however, with Malaysia’s current minimum wage set at RM1,700, this rule affects almost all job offers nationwide.
🔔 Grace Period Until 31 December 2025
To ease the transition, the IRB is waiving penalties for late stamping of contracts signed in 2025, provided they are stamped before the end of this year. However, starting 1 January 2026, any contract that is not stamped on time will face mandatory penalties.
What This Means for Employers:
✅ If you’ve hired staff this year, make sure contracts are stamped by 31 December 2025 to avoid penalties.
✅ New employer accounts should update their onboarding process to ensure compliance with stamping requirements.
✅ We recommend integrating the stamping step into your offer letter or hiring workflow.
What This Means for Job Seekers:
📄 You may now be asked to sign and stamp your employment contract before onboarding. Don’t worry — your employer will typically manage this, but it’s good to be aware.
💼 Whether you're applying for a full-time job, part-time gig, or contract role, if your monthly pay is above RM300, this applies to you.
For more information or to get your employment contracts stamped online, visit the official LHDN e-Stamping portal or contact your nearest IRB office.
