Teach in Malaysia: Salary, Taxation & Cost of Living

Let’s explore some typical salaries you can expect to earn if you decide to teach in Malaysia. We’ll also break down how the complex tax system works for international teachers, and the average cost of living for a family.

Salaries vary significantly depending on school reputation, curriculum, and teacher experience. Malaysia is known for having a wide salary spread between schools.

Packages at most international schools in Malaysia will include return flights to your home country (or equivalent) at the beginning and end of contract. Many top schools in Kuala Lumpur will also include annual flights. You can expect to receive housing stipends as part of your contract (or built into your contract as part of a benefit of your expat package).

Schools offer health insurance, though the quality of cover varies depending on your school. Some health plans don’t offer things like dental and optometry.

Many international schools will cover tuition costs for your children. The number of kids covered will depend on the individual school.

Tax System & Deductions

Malaysia’s tax system applies to everyone working in Malaysia. But, there are some specific rules for expats that you’ll want to get your head around before arriving. Your school should help you navigate this. They should also be able to help you with filing your annual tax returns with the Malaysian tax office (LHDN).

Tax Residency and Income Tax:

Malaysia determines tax residency by presence in Malaysia for 182 days or more in a calendar year (January–December). If you’re tax resident, you pay progressive Malaysian tax rates (0%–30%) on Malaysian-sourced income. If you’re a non-resident you’re subject to the non-resident tax rules and a flat 30% rate on employment income sourced in Malaysia.

Schools typically deduct tax from payroll (PAYE), but you should confirm how your school handles withholding and filing. If you expect split residency or double taxation issues, check whether your home country has a tax treaty (DTA) with Malaysia and consider speaking to a tax advisor.

Withholding tax: Your school should automatically deduct tax from your monthly salary, which keeps you compliant throughout the year. If you have any questions or you’re worried about paying the right amount of tax – speak to your HR department straight away.

Pension/retirement savings: From October 2025 employers are required to register and make EPF contributions for non-Malaysian employees who hold valid work passes. Previously, expat participation was optional in many cases – but that’s no longer the case for most foreign employees.

Foreign employees may be able to withdraw their EPF savings under the EPF “Leaving Country Withdrawal” procedure if they permanently leave Malaysia (there are eligibility rules depending on member type and date of registration), so you should factor that in when comparing long-term retirement outcomes. Ask HR for details on how your school will implement EPF contributions and what that means for net salary.

These rules apply to foreign employees with active Employment Passes—not dependants or short-term work visa holders.

Tax treaties: Malaysia has an extensive network of double-taxation agreements (DTAs) with many jurisdictions (roughly 70–75 comprehensive agreements and several limited DTAs). If your home country has a DTA with Malaysia you may be able to claim relief or credits — check the official LHDN/HASiL treaty list and ask a tax advisor about your individual situation.

Benefits: The tax treatment of your school benefits can vary. If your school provides housing directly, that’s usually tax-free (within limits). But if they give you cash for housing, that’s likely taxable. Same deal with flights – if the school books them for you, usually no tax. If they give you money to book your own, that’s probably taxable income. Professional development expenses and some moving costs might be deductible too.

Getting help: Malaysian tax rules can be pretty confusing. Start by talking to your school’s HR team if you have questions. For anything complicated or if you want to make sure you’re getting all the deductions you’re entitled to, it’s worth chatting to a tax advisor who specialises in helping expats.

Our first year working in Malaysia was tough financially. With only one income and a 30% tax rate we had to frequently use our savings at home for day to day living. That said, the cost of living depends on the size of your family, whether you want to spend more to have imported goods you’re used to and how much rent you want to pay. There are ways to help spend less – but it all depends on the quality of life you’re after.

trailing spouse living in malaysia with three kids

Housing in Malaysia

• Housing is very affordable compared to Western countries, with modern condos starting from RM 1,500-4,000 ($350-900 USD) per month for a 2-3 bedroom unit
• Rental deposits are typically two months rent and many landlords want expats to sign a two year contract
• Many expats live in modern condominiums with extensive facilities including swimming pools, gyms, 24-hour security, and playground areas
• Most rental properties come fully furnished with air conditioning, appliances, and basic furniture

Location Considerations

• If you’re in Kuala Lumpur, Mont Kiara, TTDI, and Bangsar are popular expat neighborhoods with international schools nearby. Subang Jaya and Petaling Jaya offer good value with excellent connectivity to schools
• Public transport is excellent in Kuala Lumpur with LRT, MRT, and bus networks, but a car may be necessary for teachers working in other parts of Malaysia
• Many international schools in regional areas provide onsite accommodation
• If you’re living in Penang, there are many options available to choose from that are within a short commute to most of the international schools (e.g. Tanjung Bungah and Tanjung Tokong are popular with expats)
• Grab ride-sharing is widely available and affordable throughout Malaysia (RM 10-25 for most city trips)

Practical Advantages

• No language barrier: English is widely spoken throughout Malaysia and most property agents are fluent
• Online platforms: PropertyGuru, iProperty, and expat Facebook groups make house hunting easier
• Quick setup: Utilities and internet can typically be connected within 1-2 weeks
• Maintenance support: Many condos have management offices that handle repairs and maintenance issues relatively quickly

Cost of Living

Malaysia offers good value for money, with living costs significantly lower than many Western countries while still maintaining a high quality of life.

Kuala Lumpur is the most expensive region, but it’s still about 60-70% cheaper than major Western cities. Penang isn’t far behind in terms of cost of living. Due to the large expat population, it has pushed prices up significantly. Johor Bahru provides great value, especially if you’re working near Singapore, while East Malaysia (Sabah & Sarawak) offers the lowest cost of living, but with fewer imported goods available.

Savings Potential: With typical teacher salaries and benefits packages, some international teachers can save $10,000-25,000 USD annually while enjoying a comfortable lifestyle. Like all things, it depends on the package provided by your school and the type of lifestyle you want to lead.

Food & Dining: Local Malaysian cuisine from hawker centres can cost just RM 5-12 ($1-3 USD) per meal (if you avoid tourist locations). You’ll get a diverse selection with lots of local specials. A meal at an international restaurant can range from RM 25-50 ($6-12 USD) per person, while Western/imported groceries cost 2-3x local prices but are widely available in expat areas.

Transportation: Grab rides cost RM 8-25 ($2-6 USD) for most city trips. KL has excellent public transport with monthly passes from RM 100-200 ($23-45 USD). You can purchase a decent car (example – Hyundai Tuscon 2010 model with low mileage and one previous single owner) for around RM 20,000 ($5,000 USD). Insurance is relatively cheap (around RM 1,000 per year) and fuel is inexpensive.

Utilities: Electricity, water, and high-speed internet typically cost RM 200-400 ($45-95 USD) monthly. Internet is reliable and fast throughout the country.

Healthcare: Private health insurance costs RM 150-500 ($35-115 USD) monthly for comprehensive coverage. Private clinic visits are RM 50-100 ($12-23 USD), and most international schools provide health insurance benefits.

Visa & Work Permits to Teach in Malaysia

Most international school teachers work in Malaysia on an Employment Pass (EP) which must be sponsored and applied for by the employing school via the Expatriate Services Division (ESD) of Malaysian Immigration.

EPs are usually issued for 24–36 months for teachers, depending on contract length, though some categories can be approved for up to 60 months. Though from conversations with school leaders the process is becoming more difficult (and expensive), so some schools are considering longer contract options, especially for senior leaders. Employers usually obtain conditional approval before your arrival and handle most of the paperwork. Dependants (spouses and children) may be eligible for Dependant or Long-Term Social Visit passes linked to the EP.

Always confirm the employer’s process (how/when they collect passports, expected timelines and whether you’ll need a Social Visit pass on arrival) because administrative steps and timing can vary by employer.

To qualify for a Teaching Employment Pass, you generally need:

• A Bachelor’s degree minimum in education or your teaching subject area from a recognised university.
• Teaching qualification such as PGCE, B.Ed, or equivalent teaching certification.
• Clean criminal background checks from your home country and any countries where you’ve lived for more than 6 months.
• Medical examination from an approved panel clinic (can be done in Malaysia after arrival).
• Passport with at least 18 months validity remaining.

Important points about the visa process:

• Your school acts as your sponsor and submits the Employment Pass application on your behalf before you arrive.
• Initial approval typically takes 2-4 weeks, allowing you to enter Malaysia and begin the full application process.
• You’ll receive a Social Visit Pass on arrival, giving you time to complete medical checks and final paperwork.
• The complete Employment Pass process takes 1-3 months after arrival, during which you can legally work.

Legal notes on visa status:

• You cannot enter Malaysia as a tourist and then apply for work permits from within the country.
• Always ensure your school has submitted your EP application and received initial approval before you arrive (they should send you the letter to confirm approval of the application).
• Employment Pass holders can work only for their sponsoring school – changing employers requires a new application.

Family members:

• Most international schools assist with family visa applications as part of their teacher recruitment packages.
• Spouses and children can apply for Dependent Passes linked to your Employment Pass.
• Spouses may be able to work in Malaysia but will need their own Employment Pass with a separate sponsor.
• School-age children of EP holders can attend local or international schools without additional student visas.

Getting our visas sorted for our arrival to Malaysia was very easy. Our school organised everything for us and on arrival collected our passports to ensure the visa was inserted. It was incredibly stress free and straightforward compared to other countries we’ve worked in.

current teacher at international school in malaysia

Malaysia’s Unique Multicultural Society

Malaysia’s official multiculturalism gives it a very distinct feel from other Asian countries. The three main communities are:

• Malay/Bumiputera (approximately 60%): Predominantly Muslim, speak Bahasa Malaysia, hold political majority
• Chinese Malaysian (approximately 23%): Mix of Buddhist, Christian, Taoist; speak various Chinese dialects plus English
• Indian Malaysian (approximately 7%): Mainly Tamil-speaking Hindus, plus Sikhs and Christians

There are also indigenous groups throughout Sabah and Sarawak with their own distinct culture and languages.

Impact of Multiculturalism at School

• Diverse student bodies: Reflecting Malaysia’s demographics along with international students
• Multiple holidays throughout the year: Chinese New Year, Hari Raya, Deepavali, Christmas, plus regional festivals
• Food considerations: Halal requirements for Muslim students, vegetarian options for Hindus, diverse dietary options available
• Parent community diversity: Most PTA are very multicultural – even more so at international schools

Malaysia’s Tuition Culture

If you choose to teach in Malaysia, it’s important to realise that Malaysia does have tuition centres. But, the culture differs slightly from other regions in Asia (such as China or South Korea).

Some students at international schools will attend tuition centres to supplement classroom learning, especially for subjects like Mathematics, Science, and languages. Some also attend for exam preparation.

While international school students have much less pressure and participation in the traditional tuition culture, some kids still attend tuitions. This is especially true for students from countries where the tuition centre culture is deeply embedded.

Some schools (especially newer less established schools with largely local student populations) will tailor their approach to suit parent requirements (e.g. more academic rigour and testing than is necessary, particularly in younger years). See Sam’s story for an insight into this as an expat mum.

What This Means for Expat Families:

• School choice matters: Top international schools maintain and encourage a balanced approach between academic and social pursuits
• Peer pressure varies: In international school environments, extracurriculars and social activities remain important
• Academic support available: If your child needs help, quality tutoring exists without extreme pressure
• Cultural exposure opportunity: Some expat families choose selective tutoring to help children learn local languages

Practical Advice for International Teachers:

• Ask schools directly about their philosophy on additional tutoring and homework policies
• Enquire (and observe if you can) student stress levels – healthy international schools maintain student well-being focus
• Connect with current expat families to understand real experiences
• Consider it as an option, but most expat kids thrive without any additional tuition

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Teach in Malaysia: Tips for Families

• Research Curriculum Options: Malaysia offers a huge number of international schools with various curricula. Consider your options and whether you’re looking for British, International Baccalaureate (IB), Cambridge International Examinations (CIE), or American systems. 
• Embrace Cultural Diversity: Malaysia’s multicultural society means your children will be exposed to Malay, Chinese, Indian, and international communities.
• Plan for Adjustment Period: While Malaysia is very welcoming to expat families, moving to another country can take a toll on kids as they adjust to diverse cultures and new academic experiences. Chat regularly to your kids about their experience and any challenges or issues they’re having.
• Connect with Expat Communities: Kuala Lumpur and other regions have established expat communities. Connecting with other international families can provide valuable support networks and practical advice.
• Understand Religious Calendar Impact: There are a LOT of different religious celebrations in Malaysia! If travelling during Ramadan month, remember that some hotels and restaurants may be closed during the day if they are Muslim owned and operated. Plan school and family activities around major religious holidays like Hari Raya, Chinese New Year, and Deepavali, as these can impact schedules and availability of services.
• Choose Expat-Friendly Areas: Popular expat-friendly areas in Malaysia include Kuala Lumpur, Penang, Johor Bahru, and Kota Kinabalu, each offering its own unique lifestyle and amenities. Areas like Mont Kiara in KL have established international communities with easier access to Western amenities and services.

The savings potential long term in Malaysia is excellent with the Malaysian National Pension Fund.

current international teacher with trailing spouse and 1 child

Challenges & Things to Know

• Air Quality & Haze Season: Air pollution can be a public health and environmental concern in Malaysia, especially in cities. The annual haze season (typically June to October) can cause air pollution from Indonesian forest fires. Monitor air quality apps and consider air purifiers.
• Tropical Climate Adjustment: Malaysia’s year-round hot and humid climate with frequent rainfall can be challenging if you’re used to cooler weather. Air conditioning costs can be high if you’re a frequent user, and with so much humidity in some areas, you need to be conscious of mould prevention.
• Bureaucratic Processes: Opening bank accounts, obtaining work permits, registering kids for school, and other admin tasks can require multiple visits and lots of documentation. Always make sure you’ve got all the necessary documentation, such as passports, work visas, and identification, ready whenever required.
• Driving & Transportation: Malaysia drives on the left side of the road, which can be challenging if you’re used to driving on the right. Traffic congestion in major cities can be severe, and motorcycles are everywhere.
• Seasonal Travel Disruptions: Plan family travel and school breaks well in advance around Malaysian holidays. Try to avoid travelling on busy holidays to avoid being stuck in traffic for hours!

We took a road trip during Hari Raya and didn’t do enough research to realise that travelling around that time was going to be incredibly busy. We were driving from Kuala Lumpur to Melaka, which should take around 2 hours. Instead it took us over 4 hours. To top it off our air conditioning in the car stopped working. I would definitely recommend doing some research about which holidays are best to avoid being on the roads!

current teaching family in penang, malaysia

Teach in Malaysia: Is It Right for You?

Choosing to teach in Malaysia offers a blend of multicultural living, moderate living costs, and easy access for travel. With excellent international schools, decent packages (especially in KL), and a mix of Malay, Chinese, and Indian cultures, it’s a popular spot for international educators and expats in general..

Malaysia is a top choice if you:

• Want good value for money with a comfortable lifestyle
• Appreciate cultural diversity
• Enjoy year-round tropical weather and easy access to Southeast Asia for weekend trips, family holidays, and exploring new cultures
• Prefer English for easier integration (widely spoken particularly in expat friendly areas)

Many families love Malaysia’s welcoming, family-oriented society. The country offers everything from pristine beaches and rainforest adventures to modern cities like Kuala Lumpur, all while maintaining political stability and excellent healthcare systems.

The main considerations include adapting to a humid tropical climate year-round and occasional bureaucratic processes, though most international families find the transition pretty smooth. Many educators extend their contracts because Malaysia delivers an authentic Asian experience without sacrificing comfort or convenience.