Most Wanted Employee Benefits for Retention in Malaysia

What are the Major employee benefits usually offered?

Employee benefits in Malaysia typically include a mix of mandatory legal entitlements and optional perks. Together, this combination not only meets employees’ financial and legal expectations, but also boosts satisfaction, engagement, and retention.

Mandatory Employee Benefits

As required by Malaysian labor law, employers must provide key benefits such as:

• Employees Provident Fund (EPF): Retirement savings contributions for long-term financial security.
• SOCSO (Social Security Organisation): Coverage for social security protection in cases of injury or illness at work.
• Paid Leaves: Annual leave, maternity leave, and statutory holidays.
• Overtime Pay and Statutory Entitlements: Ensuring fair remuneration for working beyond standard hours.

Optional Employee Benefits

Beyond legal requirements, many employers offer a range of non-cash benefits (“benefits in kind”) that serve as valuable perks to enhance employee well-being, engagement, and loyalty. For example, these include

• Medical insurance
• Mental health programs
• Flexible working arrangements, and more

To explore a broader range of popular benefits, see our comprehensive guide.

Employee Benefits Evolution: Adapting Employee Benefits for Multi-Generational Workforce

By 2025, Millennials and Gen Z will make up over 70% of Malaysia's workforce, marking a significant rise in the multi-generational workforce. This diverse mix of age groups brings together employees with vastly different experiences, values, and mindsets. As a result, expectations and factors driving job satisfaction vary widely across generations.

According to the Randstad Malaysia 2025 Employer Brand Research Report: Older generations prioritise financial stability, job security, and long-term career growth, whereas Gen Z values a positive work environment over salary and advancement.

To remain competitive, HR leaders must offer benefits that are flexible, inclusive, and personalised—catering to the needs of every generation.

What Benefits Attract and Retain Employees in Malaysia?

To understand what truly attracts and retains talent in Malaysia, it’s insightful to examine the employee benefits provided by the top five winners of the Best Employers in Malaysia 2024, as recognised by HR Asia Rewards. These companies are:

• Accenture
• Arvato Systems Malaysia Sdn Bhd
• AICPA (The Association)
• BAT Digital Business Solutions Kuala Lumpur
• Baxter Healthcare (Malaysia) Sdn Bhd

Perks and Benefits Offered by Malaysia’s Leading Employers

1. Accenture
   • Financial well-being: Share purchase plans, performance bonuses, equity
   • Health & medical: Comprehensive insurance (life, health, dental, vision)
   • Mental well-being: Employee Assistance Program (EAP), wellness resources
   • Family support: Parental, adoption, dependent care leave
   • Career development: Training and upskilling programs
   • Work flexibility: Remote and hybrid options
2. Arvato Systems Malaysia
   • Health & medical: Insurance and health check-ups
   • Mental wellness: Employee Assistance Program (EAP) support
   • Flexibility: Hybrid work, flexible hours, birthday leave
   • Family care: Childcare, parental leave
   • Company culture: Equity, inclusion, team trips, in-office perks
3. AICPA (The Association)
   • Health: Medical and dental coverage
   • Flexibility: Flexible hours
   • Training: Ongoing learning programs
   • Lifestyle: Parking allowance
4. BAT Digital Business Solutions
   • Health: Insurance, screenings, vaccinations
   • Mental health: Wellness initiatives
   • Financial: Performance bonuses
   • Flexible/hybrid work, online learning, diversity, family leave, transportation support
5. Baxter Healthcare
   • Health & protection: Life and disability insurance, travel accident cover
   • Mental wellness: Support programs
   • Financial: Stock purchase plans, bonuses
   • Development: Training and learning
   • Flexibility: Adaptable hours
   • Family focus: Parental leave
   • Culture: Inclusive environment

What employee benefits do these companies have in common?

Together, these benefits help foster happier, healthier, and more engaged teams, ultimately giving companies a competitive edge in recruitment and retention.

Attractive Benefits Aren’t Just for Big Companies

You might think that only large corporations with massive budgets can offer impactful employee benefits. However, small and medium-sized businesses can create attractive, cost-effective packages by taking advantage of tax-exempted medical benefits and smart budgeting.

Furthermore, solutions like Mednefits offer automated, affordable plans starting from as low as MYR0 per employee.

Therefore, the key to long-term talent retention is understanding what your employees value most, and customising your benefits package to meet those needs.

Start building a benefits plan today that supports your team—and your business—without breaking the bank.