[HR Alert] Stamping of Employment Contracts Will Be Mandatory Starting 1 January 2025
As an SME owner or HR decision-maker, it’s important to stay on top of employment regulations — and there’s a key update you need to know.
Starting 1 January 2025, all employment contracts in Malaysia must be stamped under Section 47A of the Stamp Act 1949. Failure to comply can result in penalties.
What is Contract Stamping?
Stamping is a process where you officially endorse documents (like employment contracts) with the Inland Revenue Board (LHDN). This makes the document legally recognised and enforceable.
Although this requirement has existed under the Stamp Act 1949, many companies have not been practicing it. However, enforcement is now confirmed — and it’s crucial to get ready.
What’s the Cost?
Stamp duty is RM10 per contract copy.
No extra cost unless your contract includes other chargeable items like staff loans or tenancy clauses.
What SMEs Need to Do?
To comply with this new requirement, your company will need to submit contracts through LHDN’s online portal called STAMPS.
Ask yourself:
Does your company already have a STAMPS login?
If not, don’t worry — Intune Outsourcing can help set this up and manage the stamping process for you.
Why It Matters
Penalties for non-compliance will apply starting 1 January 2025. As your trusted HR outsourcing partner, we highly recommend getting this sorted out in advance to avoid any legal issues or delays in employment processing.
Need Help?
At Intune, we specialise in making HR simple for SMEs. We’ll guide you step-by-step through the process and ensure your company is 100% compliant.
Reach out to our team today to get started or ask any questions you may have.
How InTune Outsourcing Can Support SME Business Owners?
InTune Outsourcing is one of the Malaysia’s Most Advanced and Top Outsourced Accounting, Finance, HR and Payroll services providers.
We have served more than 400 clients todate and InTune offer full-range services from start up to small to medium-sized companies.
InTune takes away the stress and pains from managing Accounting, Finance, Payroll and HR, including Bookkeeping, Payment Services, Accounts Payable, Accounts Receivable, Payroll and more, by providing an expert team of CPAs and other accounting professionals who understand the special accounting needs of growing businesses