Starting 1 January 2026, the stamp duty exemption threshold for employment contracts will increase from RM300 to RM3,000 per month.

Simply put, if your employment contract states a monthly salary of RM3,000 or below, no stamp duty is required.

Previously, only contracts with salaries below RM300 qualified for exemption. That amount was long outdated, considering the current minimum wage is RM1,700.

Now, this change finally reflects today’s economic reality. It’s a welcomed move.

Employers can formalise contracts without worrying about small, unnecessary costs or the trouble of stamping every junior-level agreement.

Important details :

1. Contracts signed from 1 January 2026 with wages above RM3,000 must still be stamped.
2. Contracts signed in 2025 are subject to RM10 stamp duty, but no penalty will be imposed if stamped by 31 December 2025.
3. Contracts signed before 1 January 2025 remain fully exempt from stamp duty, with no late penalty.

It’s a small reform with a big impact, simplifying compliance for SMEs and promoting fairness for all.

Happy stamping, Malaysia.