Malaysia Employment Act 1955
The Malaysian Employment Act 1955 is an important document that governs the relationship between employers and employees. The Act sets basic regulations for:
- minimum wage
- employee working hours
- overtime pay
- leave entitlements
- employee termination
- hiring foreign employees
As of 1 January, 2023, the Employment Act has been amended to include the following changes:
- The minimum wage limit has been increased to RM4,000 instead of RM2,000.
- Weekly working hours are limited to 45 hours.
- Maternity leave entitlement has been increased to 98 consecutive days.
- Married male employees who have been employed for at least 12 months are entitled to 7 consecutive days of paid paternity leave at their ordinary rate of pay.
- Hospitalisation leave entitlement of 60 days is in addition to the medical leave entitlement.
- New method of calculation for prorate salary.
- Pregnant employees can not be terminated unless on the ground of breach of contract, misconduct or closure of the employer’s business.
The following poster provides a breakdown of the major employment policies that govern employee contracts in Malaysia.
