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Getting leave entitlements wrong is one of the most common ways Malaysian employers accidentally breach the Employment Act 1955 — usually not out of bad intent, but because the rules changed with the Employment (Amendment) Act 2022 and many HR policies were never updated. This guide covers the statutory minimums every employer in Malaysia needs to know.
Annual Leave
| Length of Service | Minimum Annual Leave |
|---|---|
| Less than 2 years | 8 days |
| 2–5 years | 12 days |
| More than 5 years | 16 days |
For an employee who hasn’t completed a full year of service, leave is pro-rated as (months of service ÷ 12) × annual entitlement.
Sick Leave
- Non-hospitalisation (paid): 14 days (under 2 years of service), 18 days (2–5 years), or 22 days (over 5 years).
- Hospitalisation: up to 60 days per year, combined with normal sick leave entitlement.
- Requirements: the employee must notify the employer within 48 hours and provide a medical certificate from a registered doctor or dentist.
Maternity Leave
98 consecutive paid days per confinement, following the Employment (Amendment) Act 2022. Eligibility requires the employee to have been employed for at least 90 days within the 9 months before confinement, and to have fewer than 5 surviving children.
Paternity Leave
7 consecutive paid days per confinement, for up to 5 confinements. Eligibility requires at least 12 months of service with the same employer before the birth. Notice must be given 30 days before the expected confinement, or as soon as possible after the birth.
Compassionate / Bereavement Leave
The Employment Act does not set a statutory number of days for compassionate leave — this is left entirely to company policy and the employee’s relationship to the deceased. Most Malaysian employers offer between 3 and 5 days for immediate family, though this is a matter of internal policy, not a legal requirement. Spelling this out clearly in your employee handbook avoids confusion and inconsistent treatment across staff.
Public Holidays
Employees are entitled to 11 paid public holidays a year. An employee who works on a public holiday must be paid an additional two days’ wages on top of their regular pay for that day.
Rest Days and Weekly Off: Often Confused With Leave
Rest days are not the same as annual or sick leave — every employee is entitled to at least one rest day per week under the Employment Act 1955, typically unpaid unless the employee is required to work on it. If an employee works on a rest day, they’re entitled to overtime-equivalent pay, usually at a higher rate than normal overtime, with the exact rate depending on whether it’s a full or half day worked. Employers sometimes mistakenly deduct a rest day from an employee’s annual leave balance, which is not correct under the Act.
Common Mistakes Employers Make With Leave
- Applying the pre-2022 maternity leave figure (60 days) instead of the current 98 days.
- Forgetting paternity leave applies even to companies without a written policy covering it — it’s a statutory right, not a perk.
- Not pro-rating annual leave correctly for employees who join or leave mid-year.
- Treating compassionate leave as mandatory under the Act when it’s actually a matter of company policy.
- Failing to update the staff handbook after the 2022 amendments took effect.
Unpaid Leave and Study Leave: What the Act Doesn’t Cover
The Employment Act 1955 doesn’t mandate unpaid leave, study leave, or sabbatical leave — these are entirely discretionary and should be documented in company policy if offered. Many SMEs informally approve these on a case-by-case basis, but writing a clear policy avoids disputes over consistency between employees, which is a common source of complaints to the Department of Labour (JTK).
How Leave Entitlements Interact With SOCSO and EIS
During paid sick leave or hospitalisation leave, an employee’s SOCSO and EIS contributions continue as normal based on their regular salary. If an employee is unable to work due to a workplace accident, they may be eligible for SOCSO’s temporary disablement benefit, which operates alongside (not instead of) their normal paid sick leave entitlement under the Employment Act. Make sure your payroll system correctly distinguishes between Employment Act sick leave and a SOCSO-covered injury claim, as they’re governed by different rules.
Setting Up a Compliant Leave Policy: Practical Steps
- Audit your current staff handbook against the 2022 amendments — particularly maternity (98 days) and paternity (7 days) figures.
- Make sure annual leave pro-ration calculations are built into your payroll system for employees joining or leaving mid-year.
- Clearly separate statutory leave (annual, sick, maternity, paternity, public holidays) from discretionary leave (compassionate, unpaid, study) in your handbook.
- Train HR/payroll staff on the current figures, since outdated training materials are a common source of compliance gaps.
- Review leave records periodically to confirm entitlements are being tracked and granted correctly per employee.
Read This Guide in Bahasa Malaysia
A Malay-language version of this guide covering the same statutory leave entitlements is also available: Jenis-Jenis Cuti Pekerja di Malaysia.
How SASCO Can Help
Our team can help review your HR policies and payroll setup against current Employment Act requirements, so your leave entitlements, EPF/SOCSO contributions and statutory filings stay aligned and compliant.
Note: These are statutory minimums under the Employment Act 1955 as amended in 2022. Company policy may offer more generous terms. Confirm current figures with the Labour Department (JTKSM) for your specific situation.
Frequently Asked Questions
How many days of annual leave must an employer give?
A minimum of 8 days for under 2 years of service, 12 days for 2 to 5 years, and 16 days for more than 5 years of service.
How many days of maternity leave are employees entitled to?
98 consecutive paid days per confinement, under the Employment (Amendment) Act 2022, subject to eligibility requirements.
Is paternity leave mandatory in Malaysia?
Yes. Eligible male employees are entitled to 7 consecutive paid days per confinement, for up to 5 confinements, provided they’ve completed at least 12 months of service.
Is compassionate leave a legal requirement?
No. The Employment Act does not mandate compassionate leave — it’s entirely at the employer’s discretion and should be set out in company policy.
Does the Employment Act require unpaid or study leave?
No, these are entirely discretionary and should be documented in company policy if offered.
Do SOCSO contributions continue during paid sick leave?
Yes, contributions continue as normal based on the employee’s regular salary during paid sick or hospitalisation leave.
What’s the difference between Employment Act sick leave and a SOCSO injury claim?
Employment Act sick leave is a general paid leave entitlement, while a SOCSO injury claim covers inability to work due to a workplace accident and is governed by different rules.
How often should a company review its leave policy for compliance?
At least annually, or immediately after any amendment to the Employment Act, to ensure the staff handbook reflects current statutory figures.