Selecting the right payroll software Malaysia for your business can feel a bit like exploring a tech-filled treasure trove. There are many options to choose from, and each different software offers distinctive benefits (and drawbacks) that could have a major impact on your business operations.
Keeping your team engaged and your operations on track is of utmost importance. Finding the right tool to support your payroll effort are key components to employee satisfaction and management strategy.
That’s why we’re looking deeper than simple number crunchers and considering the lifeblood of your organization—your people, and the pay that they earn. Finding the right payroll software Malaysia means you’ll be able to compensate them accurately, efficiently, transparently and on time.
The stakes are high when it comes to employee payment and the processes are delicate. As a company prioritizing its employees, you should consider all essential factors before bringing any payroll software on board.
We’ve compiled a list to help you make informed choices, here’s what you need to know about handling your workforce’s most important transaction.
Why Use Payroll Software?
Payroll is a standard and routine occurrence across any company, yet it’s one that is rife with pain points. Traditional methods such as manual processes and spreadsheets aren’t just time-consuming, they open a door to errors and compliance issues.
This is why payroll software can be a game changer for HR teams—it not only sidesteps the pitfalls of manual calculations, but helps your HR team make meaningful contributions to strategic initiatives.
Malaysian employment law is filled with complexities that require close management and careful calculations, a reality that can add hours onto routine HR practices, and minor errors have the potential to snowball into larger compliance issues and even government fines.
Payroll software Malaysia helps teams to navigate complex tax laws and regulations, and maintain meticulous records to ensure compliance.
Beyond mere efficiency, using the latest payroll software empowers HR professionals with real-time insights. Instant access to accurate labor cost data means you’re not just managing finances, you’re strategically optimizing them. Instead of calculators, these tools become strategic partners, offering data-driven decision-making capabilities.
Payroll Software Malaysia: Why Malaysian Companies are Leveraging HR Technology
As your Malaysian business navigates the recent changes in regulations and workforce management, the adoption of payroll software Malaysia stands out as a needed move and a quick-win to give your business a boost and grab a competitive advantage.
The question isn’t “why use technology” but rather, why are Malaysian companies already extensively integrating HR technology into their payroll processes?
Navigating complex regulations
The Malaysian business environment is characterized by intricate labor laws and tax regulations. Payroll software Malaysia offers a streamlined approach, ensuring accuracy and adherence to the latest legal requirements. It not only helps you avoid penalties, using payroll software Malaysia is a strategic move towards sustained compliance.
Relevant reading: The Employer’s Handbook to EPF Contributions in Malaysia
Real-time adaptability
Running a business in Malaysia requires changes that puts your brand at the top of the curve. The latest payroll software Malaysia ensures that businesses stay agile. Payroll software is often backed by a team of experts, keeping organizations up to date and compliant by promptly adjusting to changes in tax structures, employment laws, or other regulatory shifts.
For instance, if a newly implemented law affects how much Malaysia tax was deducted, the payroll software should be able to make an organizational-wide adjustment quickly, easily and accurately. This flexibility not only increases efficiency but also provides a competitive edge among businesses.
Enhanced employee experience
Beyond the boardroom, there’s a direct impact on the employee experience. Streamlined payroll processes mean accurate and timely salary disbursements, reducing errors and building trust among employees. This contributes significantly to employee satisfaction and retention, crucial factors for long-term business success.
As companies embrace the advantages of payroll software Malaysia, the adoption of HR tools isn’t just a trend—it’s becoming the status-quo for companies looking to remain competitive and relevant in 2024 and beyond.
Top 10 Payroll Software Malaysia Companies are Using in 2024
Choosing the right payroll software can significantly impact how businesses operate, and in Malaysia, where the business landscape is particularly vibrant and diverse, having the right tools means your organization can keep up with shifting regulations, and take advantage of new opportunities as they arise.
Here, we’ll take a look at some of the options you have for payroll software Malaysia and offer an understanding of each option’s strengths, and when they might not be a perfect fit for certain organizations.
Omni
Omni is a comprehensive payroll solution that caters to both local and international businesses. It streamlines payroll management across various countries, making it easy to pay employees in various currencies (such as MYR, HKD, SGD, and more) and manage multiple tax and compliance laws. With automated processes and secure, digital records management, HR leaders can store records, run payroll reports, and reconcile employee data in a matter of minutes. Our intuitive user interface simplifies complex payroll processes, accurately managing employee timesheet calculations and time off allowances, making payroll seamless and timely.
Omni’s holistic, all-in-one HRIS solution serves as a single source of truth for your employee management. Meaning payroll is just one of our many functions. When you update employee information within Omni, it’s automatically reflected in your payroll, reducing the occurrence of human error and outdated records. The robustness of Omni makes it a top choice for businesses dealing with intricate international operations. Omni’s flexibility and adaptability is one of many areas that sets us apart in the competitive payroll software arena.
Kakitangan
Kakitangan is another widely used payroll software in Malaysia designed to simplify HR and payroll management for small and medium businesses. It automates payroll processing and ensures compliance with labor laws. It also offers reporting and HR analytics tools, providing valuable insights.
Despite their amazing features and a free plan available for 3 employees, for some larger organizations, Kakitangan’s usability and implementation of some complex features can make their system feel complicated.
Papaya Global
Papaya Global is a go-to solution for enterprises with a widespread global workforce. Hosted in the cloud, it excels in ensuring compliance with various international payroll regulations, making it a powerful payroll system Malaysia.
While its strength lies in global payroll management, businesses with a more localized focus might find the interface designed for larger enterprises a bit overwhelming. The time zone differences may also impact turnaround time for customer support.
Employment Hero
Employment Hero is a popular HR and payroll software for businesses across multiple regions, including Australia, New Zealand, Singapore, and Malaysia. It has a range of payroll management features and enables users to handle payroll tasks from anywhere via their mobile app.
Although Employment Hero has a lot of amazing features, some users have pointed out a few areas for improvement. For one, they wish there was more flexibility in customizing the payroll system Malaysia to fit specific needs.
Oyster Payroll
Oyster Payroll is also one of the best payroll software Malaysia and it stands out for its cloud-based simplicity. Designed for businesses looking for straightforward solutions, Oyster is user-friendly and scalable with needed payroll functionalities that benefits their users.
But while small to medium-sized enterprises might benefit from its ease of use, for those seeking more advanced features, especially if complex payroll situations are a concern, Oyster might not offer the depth that some competitors do.
SQL Payroll
Another popular payroll system in Malaysia is SQL payroll, a system that doubles as accounting software. It’s a downloadable software users have to pay for and it pretty much does everything related to payroll features created into modules.
Although this can be a good idea for businesses who don’t want to go through a much more complex interface of other software, it might not be optimum for companies looking to automate their entire HR processes in a unified platform.
Gusto
Gusto positions itself as a payroll solution for small to medium-sized businesses. Like Oyster, its simplicity and user-friendly interface make it an attractive option for those starting their payroll journey, this is an advantage for users who love an intuitive interface.
However, Gusto lacks the features for businesses with complex payroll needs, international operations, or are looking for a comprehensive solution.
HR2eazy
HR2eazy is a human resources management software (HRMS) that offers payroll processing and other HR features for small businesses in Malaysia. This online payroll system offers benefits management, analytics, and a self-service portal to its users.
While small to medium businesses can benefit with this payroll system Malaysia, users have noted that it was tricky to navigate when you first start using the system.
Payroll Panda
Payroll Panda is a payroll software in Malaysia designed to simplify and streamline payroll processing for businesses.
One of the standout features of Payroll Panda is its ease of use, with an intuitive interface that makes it easy to navigate and manage payroll tasks. Also, Payroll Panda can automate many routine payroll tasks, such as calculating salaries, deductions, and benefits, which saves time and reduces errors.
However, some users have reported that Payroll Panda’s features and reporting options can be limited, particularly for larger businesses with more complex payroll needs.
Zoho Payroll
Zoho Payroll, a part of the broader Zoho suite, is known for its budget-friendly approach. It integrates well with other Zoho applications, providing a consistent experience for users already within the Zoho ecosystem.
However, when compared to more comprehensive HR softwares, it may fall short for those looking for a comprehensive suite of features. Zoho Payroll is ideal for smaller businesses seeking a straightforward and cost-effective payroll solution.
While each of these payroll software options brings its strengths to the table, Omni stands out for its advanced features, user-friendly interface, and adaptability to various business sizes and structures.
Streamline Your Operations with Payroll Software Malaysia
Tracking and calculating hours, managing employee records, and administering payroll requires a clear, secure, and accurate system to ensure compliant and timely payouts for your employees.
Omni’s all-in-one HR software helps make these tasks streamlined and free of manual error to reduce the administrative burden on HR. With secure and centralized employee records, HR teams can easily store, update, and communicate employee information across departments and with employees.
Our payroll software Malaysia solution makes it easier than ever to calculate accurate employee payments and tax calculations through automation that saves time and reduces errors. And with automated payroll information synchronization, end of month processing becomes a streamlined and seamless effort.
Book a demo with our team to learn how our automation can help you remain compliant and reduce your administrative workload for all of your People management needs.
