Stamp duty refers to a government levy applied to legal documents which are enacted under a Stamp Act 1949 of Malaysia. In terms of employment this encompasses employment agreements- that is, a contract binding to an employer and worker.
On the part of employment, Lembaga Hasil Dalam Negeri (LHDN) requires that all signed employment contracts shall be stamped with a sum of RM10 with no respect of salary, position held and period of contract. Stamping ensures the validity and power of the document in the court of law particularly in case of labour disputes or law suits.
A penalty and restrictions imposed due to not having stamped the document within the timeframe required (30 days) might include a penalty and legal restrictions on the admissibility of the contract in the court of law.
This faq is based on the original Bahasa Malaysia document titled “Soalan Lazim (FAQ) Penyeteman Kontrak Penggajian di Malaysia”, which was last updated by the Inland Revenue Board of Malaysia (LHDN) on 3 July 2025.
For the official and most authoritative reference, please refer to the original document:
https://www.hasil.gov.my/media/jpxbp2oj/20250703-pkpe_faq-penyeteman-kontrak-penggajian-di-malaysia.pdf
Yes. According to Subsection 4(1) of the Stamp Act 1949 (SA 1949), all instruments listed in the First Schedule must be stamped according to the specified rates. Under Section 2 of the SA 1949, “instrument” refers to any written document, including legal, commercial, and financial documents. Employment contracts are considered instruments and must be stamped accordingly.
Stamping ensures compliance with the law under Section 36 of the SA 1949. Unstamped instruments are inadmissible as evidence in court (Section 52 SA 1949).
• Clearly identifies both the employer and the employee
• Guarantees regular salary payments
• Specifies working hours and work location
• Requires following company policies
• Includes statutory benefits such as EPF, SOCSO, and annual leave
• Involves working under the supervision and direction of the employer
• Prohibits employment with third parties
Yes. All written employment contracts must be stamped per Subsection 4(1), SA 1949.
Yes. Each new employment contract is a separate instrument and must be stamped.
Yes, if it’s the only binding document between the employer and employee.
If it indicates an employer-employee relationship, then it is subject to stamp duty.
Yes, an addendum signed by both parties is considered an instrument and is subject to stamp duty. Examples include:
• IT Usage Policy – subject to stamp duty as it constitutes a binding agreement
• Letter of Benefits – subject to stamp duty as it constitutes a binding agreement
• Study Sponsorship Offer – subject to duty under sub-item 22(4) of the First Schedule of the Stamp Act 1949
Yes, but must include line-by-line certified translation in the same document by certified translators such as:
• Malaysian Translators Association
• Institute of Translation & Books Malaysia (ITBM)
The first party signing the contract is liable. Typically, the employer signs first and is responsible.
• Within 30 days if the contract is signed in Malaysia
• Within 30 days of receiving the contract in Malaysia if signed overseas
• Stamp duty must be paid within 14 days from the date of assessment
• RM10 per original copy (if classified as an employment contract)
• For service contracts (i.e., not involving an employer-employee relationship), different rates apply under item 22(1)(a) of the First Schedule
• Duplicate copies: RM10, provided the original was properly stamped
A fine can be imposed under Section 63. Late penalties:
• Within 3 months: RM50 or 10% of duty (whichever is higher)
• After 3 months: RM100 or 20% of duty (whichever is higher)
A fine can be imposed under Section 63. Late penalties:
• Within 3 months: RM50 or 10% of duty (whichever is higher)
• After 3 months: RM100 or 20% of duty (whichever is higher)
• Contracts signed before 1 Jan 2025 – exempt from both stamp duty and penalty
• Contracts signed between 1 Jan and 31 Dec 2025 – penalty exempted if stamped by 31 Dec 2025)
• From 1 Jan 2026 onward – full stamp duty and penalties apply if stamping is done late
Yes, for endorsement and issuance of exemption certificate.
No, unless duty exceeds RM10 (then RM10 fee applies).
Yes, in accordance with Subsection 4(1) SA 1949.
Only if not stamped by 31 Dec 2025. Penalties apply afterward.
Yes, through the STAMPS system.
They are subject to RM10 duty and late penalties if not stamped on time.
• Register an account at https://hasil.gov.my
• Log in → Go to Forms → Select General Stamping → Choose Office and Date → Select "Employment Contract" → Upload your document → Submit
• Processing time is approximately 5–7 working days
• Pay the assessed stamp duty once the assessment is issued
• Download the digital stamp certificate and attach it to the original contract
Via STAMPS:
• FPX (online banking)
• Virtual Account (VA) – for high amounts, non-FPX banks, or overseas payments
Submit a feedback form at https://maklumbalaspelanggan.hasil.gov.my/Public/ to request the XML specification for bulk stamping.
Contact:
• Hasil Contact Centre: 03-8911 1000
• HASiL Live Chat
• Feedback form: https://maklumbalaspelanggan.hasil.gov.my/Public/
• STAMPS FAQ & user manual: https://stamps.hasil.gov.my
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