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Paid leave
in Malaysia.

SALARY PAYMENT IN Malaysian Ringgit (MYR, RM)

CONTRACT LANGUAGES Malay / English

PAYROLL TAX 13.22%

PAYROLL CYCLE Monthly

TIME TO HIRE 24 hours

Annual leave in Malaysia (holiday / vacation)

Paid leave is granted on an annual basis in Malaysia with the total amount of leave determined by the length of time an employee has been employed with a company.

The Employment Act (1955) sets out the minimum paid leave entitlements for employees in Malaysia:

  • less than two years with employer – 8 vacation days per year
  • more than two years, but less than five years – 12 vacation days per year
  • more than five years – 16 vacation days per year 

Employees that haven’t been with an employer for 12 consecutive months receive leave that is proportionate to their time with the company. This is usually computed by dividing the annual leave entitlement by 12 and multiplying by the number of months served. 

Parental leave in Malaysia

The Employment Act (1955) provides for minimum periods of parental leave, for both mothers and fathers (second parents). Employees may also negotiate periods of unpaid leave with their employer. 

Maternity leave in Malaysia

Expectant mothers are entitled to a minimum of 98 days paid maternity leave. The qualifying requirements for maternity leave include;

  • the expectant mother must have been employed within the 4 months prior to her due date;
  • the expectant mother must have been employed for at least 90 days in the nine months prior to her due date. 

Expectant mothers can begin maternity leave no earlier than 30 days before their due date. 

Paternity leave in Malaysia

In Malaysia, the amount of paternity leave granted varies considerably between employers – some employers give the statutory minimum, whilst others give as much as 30 days of paid leave.

 

The Employment Act (1955) entitles new fathers to a minimum of 7 days of paid paternity leave. The qualifying requirements for paternity leave include;

  • the employee must be married to the expectant mother;
  • the employee must be employed for the previous 12 months;
  • the expectant father must notify their employer at least 30 days prior to the due date.

Sick leave in Malaysia

The Employment Act (1955) entitles employees to minimum amounts of paid sick leave based on the length of employment and whether or not hospitalization is required. 

If hospitalization isn’t required:

  • 0 to 2 years employment – 14 days
  • 2 to 5 years employment – 18 days
  • Over 5 years employment – 22 days

If hospitalization is necessary, employees are entitled to 60 days paid sick leave. 

Employees who have been absent for longer than 2 days are required to provide a medical certificate from a registered medical practitioner. 

Bereavement and compassionate leave in Malaysia

The Employment Act (1955) makes no provisions around compassionate or bereavement leave. Although Malaysian employers aren’t required to provide compassionate or bereavement leave to their employees, many companies choose to include some allowance within individual or company-wide employment agreements.

In instances where compassionate or bereavement leave is not mentioned in the employment, employees may negotiate a period of compassionate or bereavement leave with their employer. Typically, Malaysian employers offer two to five days of paid/unpaid compassionate or bereavement leave.

Hiring in Malaysia, Made Easy

Your business can easily hire employees in Malaysia without opening a local entity. We handle local employment law, complex tax regulations, and international payroll in 180+ countries worldwide. All you need to do is focus on your business.

FAQs

In Malaysia the minimum amount of annual leave is set out in the Employment Act (1955). The amount of leave is determined by the length of time an employee has been employed with a company, as follows:

  • less than two years with the employer – 8 days of paid leave per year
  • between two and five years – 12 days of paid leave per year
  • more than five years – 16 days of paid leave per year 

Note that, under the Employment Act (1955), employees are also entitled to 11 public holidays per year. 

The specific amount of paid time off employees in Malaysia are entitled to depends on the length of their employment. On completion of 12 months of continuous employment, employees are entitled to a minimum of 8 days of annual leave. This rises to 12 days for employees who have been employed for between two and five years, rising to a minimum of 16 days for employees with over 5 years of continuous employment. 

The Employment Act (1955) entitles employees to minimum amounts of paid sick leave based on the length of employment and whether or not hospitalization is required. 

Where hospitalization isn’t required:

  • 0 – 2 years employment – 14 days
  • 2 – 5 years employment – 18 days
  • Over 5 years employment – 22 days

If hospitalization is necessary, employees are entitled to 60 days paid sick leave.

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