Leave laws are designed to ensure that employees are not only compensated for their work but also given the opportunity to take time off to address different personal and professional needs.
In Malaysia, leave laws encompass different types of leave, including annual leave, sick leave, maternity leave, and other types of special leave.
This article explores the key aspects of Malaysia’s leave laws.
This Article Covers:
Non-Mandatory Leave in Malaysia
- Unpaid Leave
- Emergency Leave
- Compassionate Leave
- Marriage Leave
- Disaster Leave
- Birthday Leave
- Childcare Leave
- Hajj Leave
- Replacement Leave
Mandatory Leave in Malaysia
The Employment Act 1955 mandates specific types of leave that employers must grant. Adhering to these leave requirements is crucial for employers to stay compliant with Malaysian laws and avoid legal trouble.
Annual Leave
Section 60E of the Employment Act 1955 grants employees paid annual leave based on their length of service, as long as they’ve worked for at least a year.
| Number of annual days per year | Period of employment |
| 8 days per year | 1 to 2 years |
| 12 days per year | 2 to 5 years |
| 16 days per year | More than 5 years |
If an employee has not completed a full 12 months of continuous service by the time their employment ends, they are entitled to a prorated amount of annual leave. This is calculated based on the number of months worked, with fractions of a day rounded according to specific rules: less than half a day is ignored, while more than half a day is rounded up to a full day.
When an employee’s contract ends, any unused leave can be paid out based on their ordinary pay rate, calculated as their monthly wages divided by 26, or according to a more favourable rate if the employer chooses.
Sick Leave
According to Section 60F of the Employment Act (EA), employees are entitled to paid sick leave based on their length of employment. The annual sick leave entitlements are as follows:
| Days of sick leave | Employment duration |
| 14 days per year | 1 to 2 years |
| 18 days per year | 2 to 5 years |
| 22 days per year | More than 5 years |
Employees who need hospitalization can be granted up to an additional 60 days of sick leave per year.
To receive sick leave, employees must obtain a medical certificate from a registered practitioner or dental surgeon at the employer’s cost and inform their employer within 48 hours of the leave’s start. Sick leave pay is calculated based on the employee’s normal wage, and for those on a monthly salary, the sick leave is covered as part of their monthly pay without any deductions.
Maternity Leave
Under the 2021 amendments to the Employment Act, female employees are now entitled to 98 consecutive days of maternity leave, up from the previous 60 days. This leave is available to all pregnant employees, regardless of their income level, as long as they have been with the organization for at least four months before their due date. Maternity leave can begin up to 30 days before the expected delivery date.
An employer cannot terminate the employment of a pregnant employee or issue a notice of termination due to pregnancy or a related illness, except in cases of:
- Willful breach of a contract condition,
- Misconduct, or
- Closure of the employer’s business.
If termination does occur under these conditions, the employer must demonstrate that the termination was not due to the employee’s pregnancy or related illness.
Paternity Leave
In Malaysia, married male employees are entitled to 7 consecutive days of paid paternity leave. To qualify, the employee must meet the following conditions:
- They must have worked for the employer for at least 12 months prior to requesting paternity leave.
- They must notify their employer of their spouse’s pregnancy at least 30 days before the expected delivery date, or as soon as possible after the birth.
Hospitalization Leave
Besides sick leave, employers must offer employees up to 60 days of hospitalization leave annually. A medical certificate from a doctor is necessary to request this leave. Eligible circumstances include:
- Hospital admission or outpatient surgery.
- Doctor-recommended bed rest for medical issues, including pregnancy-related complications.
- Required rest or continued treatment after hospital discharge.
Public Holidays
Malaysian employees typically receive 11 paid public holidays each year. But there are instances where authorities can establish additional holidays for special events, such as on July 30, 2019, which was declared a holiday to mark the coronation of Yang di-Pertuan Agong Al-Sultan Abdullah Ri’ayatuddin Al-Mustafa Billah Shah.
Employers must provide leave on public holidays. If this isn’t possible, they should offer paid leave on another date. If a public holiday falls during an employee’s sick or annual leave, the employer should grant an additional leave day.
Employees required to work on a public holiday are eligible for holiday pay plus an extra 200% of their normal wage, regardless of the number of hours worked that day.
Non-Mandatory Leave in Malaysia
In addition to the mandatory leave entitlements, there are several types of leave that employers may choose to offer at their discretion. These non-mandatory leaves are not required by law but can enhance employee satisfaction and well-being.
Unpaid Leave
For employees who have used all their paid leave and still need time off for personal reasons, unpaid leave offers a flexible alternative. The terms and procedures for unpaid leave differ by organization, so employees should speak to their Human Resources department for the specifics.
Learn more about unpaid leave in this Guide to Unpaid Leave in Malaysia.
Emergency Leave
While employers are not required to offer emergency leave, they may choose to provide 2 to 3 days of such leave each year to support employees with urgent personal needs. Any further absences should be classified as unpaid leave or deducted from the employee’s allocated leave days. Employees must provide a reasonable explanation for their absence and notify their employer of any unforeseen circumstances as quickly as they can.
Compassionate Leave
Although Malaysian law does not require compassionate or bereavement leave, it is a common benefits included in many companies’ employment agreements. Typically, employees are granted 2 to 5 days of either paid or unpaid leave for bereavement purposes, depending on the company’s specific policies.
Marriage Leave
Marriage leave, also known as matrimonial leave, is a type of leave that employees can use to take time off work for their own wedding or the weddings of close family members. While it is not mandated by law, it is a common benefit provided by many Malaysian companies. If marital leave is available, the number of days provided will vary based on the company’s internal policies.
Disaster Leave
In Malaysia, there is no statutory obligation for employers to provide disaster leave. However, the National Center for Disaster Management (NCDM) issues guidelines for managing emergencies, and many employers offer disaster leave as part of their internal policies. This leave can be paid or unpaid and is intended for situations such as severe floods or public safety emergencies.
Study Leave
Study leave is normally granted when an employee is taking a short course that is regarded as beneficial to the organization. Such leave may also be granted if the employee is taking examinations towards a certification that will upgrade their expertise and/or professionalism in their career.
There is no legal entitlement for study leave.
Birthday Leave
Birthday leave is a special day off that employees can use to celebrate their birthday. It is a discretionary benefit that allows employees to take a break from work on or around their birthday.
Childcare Leave
In Malaysia, childcare leave is an optional benefit that some employers offer to support employees with young children. While not legally mandated, this type of leave can provide valuable time for parents to care for their children, especially for new fathers who receive only seven days of paid paternity leave under current regulations.
Hajj Leave
Hajj leave is not a statutory requirement in Malaysia but is a popular benefit provided by many employers. This leave, which typically lasts 30 to 40 days, allows Muslim employees to perform the Hajj pilgrimage and is often either paid or unpaid based on the employer’s discretion. To be eligible, employees generally need to have served a minimum period with the company.
Replacement Leave
Replacement leave in Malaysia, or time off in lieu, is offered to employees who work during their scheduled rest days or public holidays. Instead of overtime pay, employees are given a day off at a later time. This practice is allowed under the Employment Act of 1955 and is a common benefit among employers.
Unused Annual Leave
Under Malaysian employment regulations, employees are expected to utilize their annual leave within a 12-month period. At the end of this period, if there are unused leave days, employees typically have three options depending on the company’s leave policy:
- Carry Forward: Employees might be able to extend unused leave into the following year based on employer regulations.
- Encashment: Employers have the option to reimburse employees for any unused annual leave days. If leave is unpaid, it should be compensated at the employee’s standard wage.
- Forfeiture: Some employers may enforce a “use it or lose it” policy, meaning any unused annual leave at the end of the year is forfeited. In this case, employees will lose their remaining leave days if they do not use them before the year ends.
These alternatives are not mandated by Malaysian law but are subject to company policies and the employer’s decision.
Learn more about Leave Entitlement in Malaysia and Malaysia labour laws.
Important Cautionary Note
This content is provided for informational purposes only. While we make every effort to ensure the accuracy of the information presented, we cannot guarantee that it is free of errors or omissions. Users are advised to independently verify any critical information and should not solely rely on the content provided.
