Not Sure Which Types of Employee Leave You Are Legally Required to Provide?
Talk to the SASCO team to make sure your policy on types of employee leave is fully compliant with the Employment Act 1955 and its latest amendments.
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The Employment (Amendment) Act 2022 changed several leave rules in phases between September 2022 and January 2023. As a result, Malaysian employers now need to relearn the types of employee leave the law requires. Maternity leave and the brand-new paternity leave saw the biggest changes.
For employers and SME owners, these statutory minimums matter for two reasons. First, they keep you compliant. Second, they form the foundation of a fair HR policy that helps you avoid disputes at the Labour Department. This guide walks through every category of statutory leave. You will learn who qualifies, how long each leave lasts, and how employers calculate it. We also distinguish statutory leave from the common “company policy” leave types that many employers offer but the law does not require.
Types of Employee Leave in Malaysia at a Glance
The Employment Act 1955 sets out five main statutory leave categories. Here is a quick overview:
- Annual Leave — 8 to 16 days a year, depending on length of service.
- Sick and Hospitalisation Leave — 14 to 22 days of ordinary sick leave, or up to 60 days if hospitalised.
- Maternity Leave — 98 consecutive days, fully paid.
- Paternity Leave — 7 consecutive days, fully paid. This is new since 2022.
- Public Holidays — at least 11 paid public holidays a year.
Here is what matters most for employers: almost all employees now qualify for these entitlements regardless of monthly salary. The RM4,000 threshold only restricts a narrower set of other provisions, not basic leave eligibility.
Annual Leave
Section 60E of the Employment Act 1955 sets the minimum annual leave employers must grant. The amount depends on the employee’s length of service. Employees with less than 2 years of service get 8 days a year. Those with 2 to less than 5 years get 12 days. Employees with 5 years or more get 16 days.
These figures are statutory minimums. Many employers offer more generous entitlements as part of a competitive benefits package. In most cases, employers must pay out unused annual leave on termination, subject to the employment contract and the Act’s provisions.
Sick Leave and Hospitalisation Leave
Ordinary sick leave (without hospitalisation) also scales with length of service. Employees with less than 2 years get 14 days a year. Those with 2 to less than 5 years get 18 days. Employees with 5 years or more get 22 days.
If an employee needs hospitalisation on medical advice, they can take up to 60 days of hospitalisation leave per calendar year. This figure includes any ordinary sick leave already taken. Sick leave is only valid and payable when a registered medical practitioner or the company doctor certifies it. In addition, the employee must generally notify the employer within 48 hours.
Maternity Leave
This is one of the most significant changes under the Employment (Amendment) Act 2022. The law extended maternity leave from 60 to 98 consecutive days, fully paid throughout. To qualify, a female employee must have worked at least 90 days in the 9 months before confinement, or she must have been employed at some point during the 4 months before confinement.
Leave can begin up to 30 days before the expected delivery date. However, one important cap often gets overlooked: employers no longer need to pay the maternity allowance if the employee already has 5 or more surviving children at the time of confinement. Employers also cannot terminate an employee’s service while she is on maternity leave.
Paternity Leave
Paternity leave is an entirely new entitlement. The 2022 amendment introduced it for the first time; previously, no statutory provision existed at all. Eligible fathers can now take 7 consecutive days of fully paid leave.
To qualify, the employee must be legally married to the child’s mother. He must also have completed at least 12 months of continuous service with the same employer, and he must give advance notice to the employer, typically around 30 days before the expected delivery date, or as soon as reasonably practicable. This entitlement is capped at the first 5 confinements, regardless of how many marriages or spouses are involved.
Public Holidays
The Employment Act requires employers to provide at least 11 paid public holidays a year. Of these, 5 are compulsory and employers cannot substitute them: National Day (Hari Merdeka), the Yang di-Pertuan Agong’s Birthday, the state Ruler’s Birthday or Federal Territory Day (depending on the state), Labour Day (1 May), and Malaysia Day.
Employers can choose the remaining 6 days from the officially gazetted list. For example, many companies pick Chinese New Year, Hari Raya Aidilfitri, Deepavali, Christmas, or Wesak Day, depending on location and workforce composition.
Common Non-Statutory Leave Types
Beyond the five statutory leave types above, many Malaysian companies also offer additional leave as a matter of company policy. Examples include compassionate or bereavement leave, marriage leave, study or exam leave, and unpaid leave for personal matters. It is important to be clear here: the Employment Act 1955 does NOT mandate these leave types. Instead, they simply reflect common market practice and internal policy. As a result, the number of days varies from one organisation to another.
Summary Table: Types of Employee Leave in Malaysia
| Leave Type | Statutory Minimum | Eligibility Notes |
|---|---|---|
| Annual Leave | 8–16 days/year | All employees under a contract of service |
| Sick Leave | 14–22 days/year | Requires medical certificate; notify within 48 hours |
| Hospitalisation Leave | Up to 60 days/year | Inclusive of ordinary sick leave taken |
| Maternity Leave | 98 consecutive days | ≥90 days worked in 9 months pre-confinement; capped at 5 children |
| Paternity Leave | 7 consecutive days | Legally married, ≥12 months service, capped at 5 confinements |
| Public Holidays | Minimum 11 days/year (5 compulsory) | Applies to all employees |
| Non-Statutory Leave | At employer’s discretion | No legal requirement |
Further Reading on Types of Employee Leave in Malaysia
Leave interacts closely with payroll obligations. For example, see our article on How to Calculate Net Salary With Statutory Deductions, since salary paid during maternity, sick, or annual leave still needs correct EPF, SOCSO, and EIS deductions. If you have just hired a new employee, you may also need to handle the CP22/CP22A tax forms; we cover that obligation in a separate guide.
If you want to understand medical and work-injury protection alongside sick leave, read our piece on SOCSO Contribution. And if your company plans to offer study or training leave as an added benefit, our article on HRDF Contribution explains how employee training gets funded. You can also check the official Malaysian Government Portal on Labour Law for the latest official guidance.
How Can SASCO Help With Types of Employee Leave?
Aligning your leave policy with the Employment Act 1955 can get complicated, especially while you also stay compliant on EPF, SOCSO, EIS, and tax obligations. This is often hard for employers who manage HR and payroll in-house. However, a qualified payroll and HR advisor can help. We can help you build a fully compliant leave policy, correctly calculate pay during leave periods, and keep your HR records up to date as employment law continues to evolve.
Our services include:
- Payroll Management & HR Compliance
- Leave Policy & Employment Act Advisory
- EPF, SOCSO & EIS Contribution Calculations
- Accounting and Tax Services for Businesses
Need help setting up a legally compliant employee leave policy?
Contact SASCO for a free payroll and HR consultation.
Frequently Asked Questions About Types of Employee Leave
What are the main types of employee leave in Malaysia that employers must provide?
The five core statutory leave types under the Employment Act 1955 are annual leave, sick leave (including hospitalisation leave), maternity leave, paternity leave, and paid public holidays.
Do all employees qualify for these leave types even if they earn more than RM4,000 a month?
Yes. Since the Employment (Amendment) Act 2022 took effect, annual leave, sick leave, maternity leave, paternity leave, and public holidays apply to almost all employees regardless of salary. The RM4,000 threshold now only limits eligibility for a narrower set of other provisions, such as overtime pay and certain termination benefits.
How many days of maternity leave are employees entitled to in Malaysia now?
98 consecutive days, fully paid – up from 60 days before the 2022 amendment. The maternity allowance is not payable if the employee already has 5 or more surviving children at the time of confinement.
Are fathers entitled to paternity leave in Malaysia?
Yes. Since 2022, legally married fathers who have completed at least 12 months of service with their employer are entitled to 7 days of paid paternity leave, capped at the first 5 confinements.
Can an employer refuse an employee’s annual leave request?
Employers can manage the scheduling of annual leave based on operational needs, but they cannot deny an employee the statutory minimum number of leave days within the year.
Are bereavement leave or marriage leave required by law in Malaysia?
No. These leave types are not mandated under the Employment Act 1955 – they are additional benefits offered at each company’s discretion as a matter of internal policy.
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