Best Future-Proof Payroll for SMEs in 2025 (Malaysia)
Payroll in Malaysia isn’t just about paying wages. It involves statutory deductions, reporting deadlines, and ensuring your system evolves with regulatory changes. In 2025, the best payroll for SMEs in Malaysia is one that automates, adapts, and scales so you aren’t left scrambling every time laws change.
For many Malaysian SMEs, payroll management remains one of the most time-consuming and error-prone tasks in the HR department. As regulations evolve and businesses adopt digital transformation, selecting the right, future-proof payroll software is more crucial than ever.
What Does “Future-Proof” Payroll Mean for Malaysian SMEs?
A future-proof payroll system is designed to adapt to changing needs. It automates routine tasks, updates itself to comply with local laws, and keeps your data secure and accessible.
Here’s what makes a payroll solution future-ready in 2025:
- Automated Calculations: Reduce manual entry and payroll errors.
- Regulatory Compliance: Stay up to date with Malaysia’s latest statutory requirements for EPF, SOCSO, EIS, and PCB.
- Cloud Accessibility: Access payroll data anytime, anywhere—perfect for hybrid or remote teams.
- Seamless Integration: Connect payroll with your accounting, attendance, and HR systems.
- Scability: Easily handle company expansion, whether you have one or multiple branches.
When your payroll system adapts to changes automatically, you save time and reduce compliance risks, both critical for SMEs operating in today’s fast-changing business environment.
Key Statutory Requirements You Can’t Ignore
For Malaysian SMEs, “future-proof” must mean fully compliant. Some crucial statutory obligations include:
EPF (Employees’ Provident Fund)
- Employers must deduct the employee’s share and contribute the employer’s share, and remit monthly.
- Typical rates: 11 % employee, 12 % or 13 % employer, depending on salary.
- From 1 October 2025, foreign employees will also be required to make EPF contributions (and their employers too).
SOCSO/PERKESO & EIS
- Employers must contribute for insurable employees under the Employees’ Social Security Act 1969.
- For most employees under age 60, the contribution is split: employer pays ~1.75 %, employee ~0.5 %.
- EIS contributions are currently 0.2 % from the employer and 0.2 % from the employee.
PCB (Potongan Cukai Bulanan / Monthly Tax Deduction for LHDN)
- Employers are required to deduct income tax from employees’ salaries each month based on their chargeable income.
- It is required to calculate PCB according to the latest LHDN tax table and submit reports electronically via e-Data PCB or e-CP39.
Failing to keep up with these can lead to penalties, interest, and legal liability. By selecting a payroll system that auto-updates these rates and enforces deadlines, you reduce risk and free your team from chasing changes manually.
Why SMEs Need the Best Payroll System in 2025
Payroll impacts more than just monthly salary payments. It affects compliance, employee trust, and even your business’s financial accuracy. Yet, many SMEs still face:
- Delays due to manual data entry
- Miscalculations in statutory deductions
- Difficulty keeping up with LHDN or SOCSO updates
- Limited visibility on payroll reports and analytics
By adopting the best payroll for SMEs in 2025, businesses can enjoy:
- Time-saving automation: Automate repetitive calculations and submissions.
- Accurate statutory compliance: Ensure timely, error-free updates to Malaysia’s regulatory bodies.
- Employee Self-Service (ESS): Let employees view payslips, apply for leave, and update personal details online.
- Better visibility: Access real-time reports for smarter HR and financial decisions.
With a modern payroll system, SMEs can focus more on business growth and less on manual paperwork.
What to Look for in the Best Payroll Software
When evaluating payroll systems, SMEs should look for key features that simplify compliance and boost efficiency:
- e-Submission Ready: Support for EPF, SOCSO, EIS, and PCB e-submission to government portals.
- Customisable Pay Items: Manage various salary structures, allowances, and deductions easily.
- Leave & Attendance Integration: Track working hours and leave balances accurately.
- Multi-Company & Multi-Branch Support: Manage multiple entities under one system.
- Cloud Security & Backup: Protect sensitive data with reliable encryption and storage.
These features ensure your payroll stays compliant, secure, and ready for the future.
6 Best Payroll Systems for Malaysian SMEs 2025
Below is our list of the top payroll systems in Malaysia for 2025, ranked based on functionality, local compliance, and SME-friendliness.
*Estimated pricing as of 2025, based on SME-tier plans. Actual pricing may vary depending on company size and selected options.
6. Swingvy Payroll
Swingvy combines payroll, claims, and leave management into one clean platform. Its interface is one of the most user-friendly, making it popular among modern startups and hybrid teams.
- Pricing: From RM 99/month for up to 20 employees + RM 7/additional employee.
- Best For: Growing SMEs that value design and ease of use.
| Pros | Cons |
|---|---|
| Excellent user experience | Pricing can rise quickly as headcount grows |
| Great for hybrid and remote teams | Limited customisation for complex pay setups |
| Fast and intuitive payroll processing |
5. PayrollPanda
PayrollPanda keeps things simple and affordable. Designed specifically for Malaysian SMEs, it automates EPF, SOCSO, EIS, and PCB calculations and submissions. It’s ideal for business owners who prefer minimal setup.
- Pricing: From RM38/month + RM7 per employee for 50+ employees
- Best For: Startups and small businesses seeking an easy, budget-friendly payroll system.
| Pros | Cons |
|---|---|
| Scalable for growing teams | Pricing can rise quickly as headcount grows |
| Comprehensive HR guides | Limited customisation for complex pay setups |
| Excellent compliance support |
4. Kakitangan
Kakitangan has long been a favourite among small Malaysian businesses for its simplicity and focus on local compliance. It handles payroll, leave, and claims efficiently, and is ideal for companies that want a straightforward solution.
- Pricing: From RM 30/month for up to 10 employees + RM 3 per employee.
- Best For: Micro and small businesses that want a no-fuss payroll tool.
| Pros | Cons |
|---|---|
| Very easy to set up and use | Limited integration with accounting tools |
| Tailored for Malaysian SMEs | Basic reporting and analytics |
| Affordable for small teams |
3. Talenox Malaysia
Talenox is a cloud-based solution that automatically updates statutory rates and integrates with accounting tools like Xero and QuickBooks. It’s sleek, simple, and reliable for companies that want a straightforward online payroll system.
- Pricing: From RM 10/employee/month (minimum RM 60/month).
- Best For: SMEs using cloud accounting software.
| Pros | Cons |
|---|---|
| Simple and efficient to use | Limited HR customisation |
| Seamless integration with accounting tools | Reporting features are basic |
| Reliable compliance automation |
2. Employment Hero Malaysia
Employment Hero is a global HR platform that includes payroll, benefits, performance tracking, and more. It’s a powerful all-in-one system, though its pricing may be higher for small businesses.
- Pricing: From RM 8 per employee per month + RM 50 base fee.
- Best For: Mid-sized companies with larger HR and compliance needs.
| Pros | Cons |
|---|---|
| Comprehensive HR and payroll solution | Higher pricing for smaller companies |
| Good analytics and reporting | Advanced features locked behind premium plans |
| Suitable for regional or multi-entity businesses |
1. AutoCount HRMS
At the top of the list is AutoCount HRMS, Malaysia’s most comprehensive and future-ready payroll solution. It automates every step from payroll and leave management to e-submissions for EPF, SOCSO, EIS, and PCB, all while syncing seamlessly with AutoCount Accounting. It gives SMEs total flexibility and control.
Beyond automating payroll, leave, claims, and statutory submissions, AutoCount HRMS leverages AI-driven analytics to simplify decision-making. It can intelligently detect payroll anomalies, suggest corrections, and provide predictive insights such as overtime cost projections, absenteeism trends, and more.
- Pricing: FOC for small teams + RM44 per month for larger teams.
- Best For: SMEs that want a full HR and payroll ecosystem built for Malaysia’s business landscape.
| Pros | Cons |
|---|---|
| Built specifically for Malaysian statutory compliance | Initial setup may need onboarding support |
| End-to-end HR + payroll ecosystem | |
| Excellent value and integration for SMEs | |
| Scalable and secure for long-term growth |
The Future of Payroll Management in Malaysia
Looking ahead, payroll management will continue to evolve with new technologies and compliance demands. In the coming years, we can expect:
- AI-assisted payroll analytics to provide insights on HR performance.
- Real-time statutory updates synced directly with Malaysian authorities.
- Integrated e-Invoicing and payroll reporting for complete financial transparency.
SMEs that adopt modern payroll systems today will be well-positioned to handle tomorrow’s challenges effortlessly.
With AutoCount HRMS, Malaysian SMEs can simplify payroll processes, eliminate manual errors, and future-proof their HR operations, all while staying fully compliant with local regulations. Simplify your payroll today and stay ready for tomorrow.