Employment Contracts: What’s Changing from August 2026?
Published on: August 13, 2026A key update has been announced regarding Stamp Duty and Endorsement requirements for Employment Contracts, particularly for employees earning RM3,000 or below per month.
What is Stamp Duty?
Stamp Duty refers to the duty payable on certain documents, while Stamping refers to the process of submitting the document for stamp duty purposes.
Endorsement refers to the formal confirmation or recording of the document's stamp duty or exemption status by HASiL.
Importantly, being exempt from Stamp Duty does not always mean that Endorsement is unnecessary. However, HASiL has clarified that Employment Contracts for salaries below RM3,000 starting from August 2026 do not require Endorsement.
Salary RM3,000 or Below
For Employment Contracts with a monthly salary of RM3,000 or below, the latest update indicates that:
- Stamping is generally not required
- Endorsement is not required for Employment Contracts commencing from August 2026
- Additional documents relating to the same employment relationship generally do not require separate processing.
What About Contracts Before August 2026?
The latest update applies to Employment Contracts commencing from August 2026. Contracts that commenced before August 2026 may still be subject to the previous Stamping requirements.
Key Takeaway
Employment Contracts commencing from August 2026 with monthly salaries of RM3,000 or below:
No Stamping + No Endorsement required, based on the latest update.
For assistance in reviewing your Employment Contracts or compliance requirements, contact AFA Group.
