Leave Entitlement in Malaysia

Leave Entitlement in Malaysia

July 16, 2015 Blog

This article walk you through on employee compulsory and optional leave entitlement in Malaysia.

Annual Leave (Compulsory under Employee Act 1955)

  • Employee are entitled to annual leave of
    Year in Service Minimum Entitlement
    1st to 2nd 8
    3rd to 4th 12
    5th and above 16
  • The employee shall take such leave not later than 12 months, after the end of every 12 months continuous service and any employee who fails to take such leave at the end of such period, balanced remaining will lapse.
  • Where an employee who is on annual leave becomes entitled to sick leave or maternity leave while on such annual leave, the employee shall be granted the sick leave or the maternity leave. The annual leave shall be deemed to have not been taken in respect of the days for which sick leave or maternity leave is so granted.
  • If the contract of service has been terminated by either party before an employee has taken the annual leave to which he is entitled, the employer shall pay the employee his ordinary rate of pay in respect of every day of such leave. Example one day’s rate is deemed to be (1 / 26) x (monthly base salary).

Sick Leave (Compulsory under Employee Act 1955)

  • Employee are entitled to sick leave where no hospitalization is necessary of
    Year in Service Minimum Entitlement
    1st to 2nd 14
    3rd to 4th 18
    5th and above 22

Hospitalisation (Compulsory under Employee Act 1955)

  • Employee are entitled up to 60 days hospitalisation in aggregate with sick leave. Meaning total sick leave + total hospitalisation = 60 days.
  • Example: Mr A entitled 14 sick leave, then he is entitled 46 hospitalisation.

Maternity Leave (Compulsory under Employee Act 1955)

  • As a working mother, you are entitled for a period of not less than 60 consecutive days maternity leave in respect of each confinement with full pay which may commence before the date of confinement as is medically advised. At the end of the 60 calendar days, they are normally required to return to work.
    Update – Malaysia’s Budget 2018 proposed the increment from 60 to 90 days for maternity leave. Read more on the update here.
  • Benefit is applied in case of miscarriage or medical termination of pregnancy (provided that at least 22 weeks of pregnancy).
  • Benefits is not applied if it is a voluntary termination.
  • Any rest day or public holiday and sick leave that falls due during maternity leave is counted as part of the maternity leave and will not give rise to any additional leave or payment.

Marriage Leave (Optional)

  • A properly authenticated certificate of such marriage shall be provided by the employee.
  • Normally 3 days.

Paternity Leave (Optional)

  • As a working father, you are eligible paternity leave for the birth of his child.
  • Normally 1 or 2 days.

Adoption Leave (Optional)

  • As the mother who wishes to adopt a child either from recognized adoption agency, blood related child or step child following all the legal procedures and she is the primary care taker of the child may apply for Adoption leave.
  • Normally 1 or 2 days.

Childcare Leave (Optional)

  • As a working parents, you are allowed to take childcare leave to look after their sick children aged below 12 years.
  • Normally 1 – 5 days.

Study / Examination Leave (Optional)

  • A study leave refers to a period for which an employer has released an employee from the performance of the duties pertaining to the latter’s employment, to enable him/her to pursue training, study or examination.

Compassionate Leave (Optional)

  • This could be anything . Example: death of a member of immediate family.

Unpaid Leave / Leave Without Pay

  • Under exceptional circumstances like serious illness, the employee can avail of such a leave after approval from the approval authority. This may be sanctioned only when all other forms of leave are exhausted.


Want improve your company leave management?

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