MY HR OUTSOURCE SOLUTIONS

As of 2025, under the Stamp Act 1949. all employment contracts are required to be stamped. This applies to all types of employment arrangements, including full-time, part-time, fixed-term, and internship contracts.

WHY NOW?

• Stamp duty serves as a source of revenue for the government
• In case an employer is involved in a court case involving employees, i.e. claims or termination issue, only stamped contracts will be accepted in court

Here’s an updated stamp duty requirement by Lembaga Hasil Dalam Negeri (LHDN).

Contract Date

Stamp Duty Requirement

Penalty Conditions

Before 1 Jan 2025

✅ Exempt – no stamp duty or penalties for late stampinghasil.gov.my+11dnh.com.my+11ajobthing.com+11

Not applicable

Signed between 1 Jan 2025 – 31 Dec 2025

🛑 Must be stamped (RM10).

Not applicable

No penalty if stamped by31 Dec 2025

Late penalty waived only if stamped before 31 Dec 2025

From 1 Jan 2026 onwards

✅ Stamp mandatory (RM10) + penalties if late at any time

Standard penalty regime resumes

FAQ:

• If you had a simple variation of terms in your existing contract, like salary increase, change in duties, bonus clause within the existing entity – No need to stamp (even if the change was made in 2025)
• If the amendment forms a new or renewed fixed-term contract, or involves transfer to a new employing entity in 2025, it needs to be stamped (RM10) before 31 December 2025 to avoid penalty

NEXT STEPS:

If you have employees hired anywhere in Malaysia, regardless of nationality, do this to start with:

• Assign a person or team to start the process of sorting and stamping all employment contracts in your organization (HR / Legal team)
• This can be done easily online here at: https://stamps.hasil.gov.my/stamps/
• Even if you are providing a revised employment letter (eg. change in entity/ job etc) the stamping has to be done based on the original hire date
• Moving ahead, always stamp employment contracts within 30 days after signing.

TIPS

Some organizations have taken this opportunity to review their existing employment contracts. They want to ensure these contracts are “well protected” in the eyes of law. This happens before they reissue them and pay the stamp duty.

If you need help with this, do reach out to us today!