Stamp Duty Exemptions raised for employment contracts

   

This change, announced under the Malaysian Budget 2026, aims to reduce administrative burdens and provide cost savings for businesses when formalising employment agreements.

     

Currently, employment contracts are subject to a RM10 stamp duty under Item 4, First Schedule of the Stamp Act 1949, unless the employee earns RM300 monthly or less​.

    

Employers will no longer need to pay the RM10 stamp duty for employment contracts where the employee earns up to RM3,000/month. This is a significant improvement from the previous RM300 threshold, making the exemption applicable to a much larger workforce.

    

Our earlier article highlighting on the mandatory stamping of employment contracts can be read here​.​​​