Paid Versus Unpaid Internships in Malaysia — Which Should You Choose?

Disclaimer: This article should not be considered to be legal advice, and altHR is not liable for any actions taken based on this article.‍‍

Internships are an essential part of training and education, and a well-constructed programme that offers students a chance to gain experience and exposure in a real-world professional setting — something that simply can’t be replicated in a classroom. 

For employers, interns can also provide fresh perspectives, enhance employer branding, and support the workforce in many ways. This, however, doesn’t mean that interns should be looked at as cheap (or even free) labour for companies to exploit. 

While some organisations offer healthy allowances to interns to offset their costs, there are still some internship programmes that do not include any form of remuneration for interns. 

So, is a paid internship better than an unpaid programme? 

Does the law require pay for interns in Malaysia?

Technically, interns aren’t covered by the Employment Act 1955 in Malaysia — which means that they do not qualify for the stipulated minimum wage (now at RM1,500) in Malaysia. This is because “employees” are defined as: 

• Employees who have entered into a contract of service with monthly wages of RM2,000 or less.
• Employees who — regardless of monthly wage — are engaged in manual labour.
• Domestic servants. 
• And other categories of employees within the First Schedule of the EA 1955.

There are also apprenticeship contracts in the Act, but to qualify as an apprentice, interns need to have a written contract for at least 2 years. As such, benefits like minimum wage, or even leave entitlements aren’t legally required for interns. Read more about that here.

So, should you pay interns in Malaysia?

The cost of living in the capital city of Kuala Lumpur is estimated to be nearly RM3,600 — this is something employers should keep in mind when making internship remuneration decisions. While an internship is an opportunity for aspiring individuals to gain industry experience (and are hence paid “in experience”), it’s important to understand the challenges students may face in this regard. 

Remember: internships aren’t simply affordable labour. Instead, internships are a great opportunity for students to gain experience, while even offering potential future talents for employers. 

Are there any benefits to unpaid internships?

For students that might be struggling to find the right internship programme, an unpaid internship may be an option. You’ll still gain experience in the right field, and it will help with the early stages of your resume building process. 

Unpaid internships might even have less time restraints or more flexibility in certain cases, so it might still be a useful opportunity for some — particularly if the organisation is one that will offer a great internship experience, remuneration aside. 

However, as employers, it is still highly advised to offer some sort of remuneration or allowance to your interns. With costs of living, transport, and even food rising, you should consider the financial implications, too.