Leave policy in Malaysia
Get complete details about the leave policy in Malaysia. Learn about leave laws in Malaysia, with statutory leaves, like sick leave, annual leave, and more.
The Employment Act 1955 primarily governs the leave policy in Malaysia. The policy sets out the minimum entitlements that employers must provide to eligible employees.
Along with the Employment Act, leave entitlements are also influenced by collective agreements, individual company policies, and other legislation, such as the Maternity Benefits Ordinance and the Employees Social Security Act.
The Employment Act 1955 covers different types of leave, including sick leave, annual leave, maternity leave, hospitalization leave, and more. The leave entitlements in Malaysia typically increase in proportion to an employee’s length of service.
You must understand the leave laws in Malaysia to stay compliant as per local regulations.
Vacation/annual leave in Malaysia
The following are some annual leaves that employees are entitled to get:
- The statutory annual leave in Malaysia is determined by the tenure of service of the employee in a particular company.
- The paid annual leave for the employee shall be in addition to rest days and paid holidays.
| Employment duration | Number of leave days and other details |
|---|---|
| Less than 2 years | 8 days of leave for every 12 months of continuous service with the same employer |
| 2-5 years | 12 days of leave for every 12 months of continuous service with the same employer |
| More than 5 years | 16 days of leave for every 12 months of continuous service with the same employer |
Employees must use any unused annual leave within the next 12 months of service. Under Section 60E of the Employment Act 1955, any leave not taken within this period will be forfeited.
Public holidays
There is a minimum of 11 gazetted public holidays in Malaysia. However, the holiday calendar in Malaysia varies each year based on government announcements.
Here is a list of the typical public holidays:
- New Year’s Day
- Chinese New Year (Second Day)
- Hari Raya Puasa (Second Day)
- Labor Day
- Hari Raya Haji
- Vesak Day
- Birthday of SPB Yang di-Pertuan Agong
- Awal Muharram
- Maulidur Rasul
- Malaysia National Day
- Malaysia Day
- Deepavali
- Christmas Day
Sick leave in Malaysia
Employees are entitled to sick leave in Malaysia. The statutory minimum mandate for the leave is determined by the tenure of service.
| Employment duration | Number of sick leave days and other details |
|---|---|
| Less than 2 years | 14 days per year |
| 2-5 years | 18 days per year |
| More than 5 years | 22 days per year |
Hospitalization leave
An employee is entitled to 60 days of hospitalization leave in aggregate in each calendar year, in addition to the sick leave, when hospitalization is necessary. This has to be certified by a registered medical practitioner or medical officer.
Maternity leave in Malaysia
Pregnant female employees are eligible for 98 days of paid maternity leave in Malaysia.
Paternity leave in Malaysia
Under Malaysian Law, legally married male employees get 7 consecutive days of paid paternity leave.
Other types of leave in Malaysia
Along with the above-mentioned statutory leaves/paid time off in Malaysia, there are other leaves that employees get in the country. Here are some of them:
Childcare leave
An employee is eligible for a minimum of 6 days’ leave annually as childcare leave. This is applicable when the child is 6 years old or younger.
Compassionate/bereavement leave
There is no mandatory compassionate/bereavement leave in Malaysia. However, organizations often offer 2-5 days of bereavement leave for employees as a practice.
Explore Payoneer Workforce Management in Malaysia
Managing leave policy in Malaysia requires expertise, with different leave entitlements for employees.
By partnering with platforms like Payoneer Workforce Management, you get complete support with payroll, time-off management, statutory compliance, and more seamlessly.
Book a demo with Payoneer Workforce Management today!
FAQs
1. What is hospitalization leave in Malaysia, and how is it different from sick leave?
Employees in Malaysia are entitled to 60 days of hospitalization leave per year. This is applicable when the employee needs hospitalization for treatment and has to be certified by a registered medical practitioner or medical officer. Hospitalization leave is additional and does not reduce the standard sick leave entitlement in the country.
2. Are public holidays counted as part of annual leave in Malaysia?
No, public holidays in Malaysia are separate from the annual leave in the country. Malaysia has a minimum of 11 gazetted public holidays per year, including national and state holidays.
3. Can unused annual leave be carried forward to the next year?
Yes, but only for a limited time. Under Section 60E of the Employment Act 1955, any unused annual leave can be carried forward, but it must be used within the next 12 months. If not taken within that period, the leave will be forfeited.
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