Managing employee leave entitlements is a fundamental aspect of human resources and compliance for businesses operating in Malaysia. The country's labor laws stipulate various types of leave that employers must provide, ensuring employee well-being and adherence to statutory requirements. These entitlements cover everything from annual vacation time to specific provisions for illness, public holidays, and family-related needs.
Navigating these regulations is essential for smooth operations and maintaining a positive employer-employee relationship. Understanding the minimum requirements for each leave type helps companies build compliant and competitive compensation and benefits packages.
Annual Leave
Employees in Malaysia are entitled to paid annual leave, with the minimum number of days increasing based on their length of service with the employer. These are statutory minimums, and employers may offer more generous leave policies.
| Length of Service | Minimum Annual Leave Entitlement |
|---|---|
| Less than 2 years | 8 days per year |
| 2 years but less than 5 years | 12 days per year |
| 5 years or more | 16 days per year |
Annual leave must be taken within 12 months of the end of the continuous 12-month period in which the entitlement accrues. If an employee is terminated or resigns, they are typically entitled to payment in lieu of any untaken annual leave days accrued up to the date of termination.
Public Holidays
Malaysia observes a number of public holidays throughout the year. Employees are entitled to paid holidays on these days. The law mandates a minimum of 11 gazetted public holidays per year, which must include:
- The National Day
- The Birthday of the Yang di-Pertuan Agong
- The Birthday of the Ruler or the Yang di-Pertua Negeri, as the case may be, of the State in which the employee is employed
- The Workers' Day
- Malaysia Day
- Any day appointed as a public holiday under the Holidays Act 1951
Employers must display a list of the 11 gazetted public holidays at the beginning of each year. If an employee is required to work on a public holiday, they are entitled to premium pay rates.
Sick Leave
Employees are entitled to paid sick leave when certified by a registered medical practitioner. The number of paid sick leave days depends on the employee's length of service and whether hospitalization is required.
| Length of Service | Minimum Sick Leave (No Hospitalization) | Minimum Sick Leave (Requires Hospitalization) | Total Maximum Sick Leave (Including Hospitalization) |
|---|---|---|---|
| Less than 2 years | 14 days per year | 60 days per year | 60 days per year |
| 2 years but less than 5 years | 18 days per year | 60 days per year | 60 days per year |
| 5 years or more | 22 days per year | 60 days per year | 60 days per year |
The total number of paid sick leave days an employee is entitled to in a calendar year is capped at 60 days if hospitalization is necessary, regardless of their years of service. Sick leave without hospitalization is subject to the lower limits based on service length.
Parental Leave
Malaysia provides statutory leave entitlements for new parents, including maternity, paternity, and adoption leave.
- Maternity Leave: Female employees are entitled to a minimum of 98 consecutive days of paid maternity leave for each confinement, up to a maximum of five confinements. This leave can commence as early as 30 days before the expected confinement date.
- Paternity Leave: Male employees are entitled to 7 consecutive days of paid paternity leave for each confinement, up to a maximum of five confinements, provided they are legally married to the mother and have been employed for at least 12 months immediately before the commencement of paternity leave.
- Adoption Leave: Employees who adopt a child are entitled to 48 consecutive days of paid adoption leave. This leave must commence no later than 30 days from the date the employee officially receives the child, and the child must be less than 13 years old at the time of adoption.
Other Leave Types
Beyond the primary categories, employees in Malaysia may be entitled to other types of leave, though the availability and terms can vary depending on statutory requirements or company policy.
- Bereavement Leave: While not strictly mandated by statute, many employers offer paid or unpaid leave for employees experiencing the death of a close family member.
- Study Leave: Some companies provide leave for employees pursuing further education or training relevant to their role, often subject to specific conditions and duration limits.
- Sabbatical Leave: Typically offered by employers as a benefit for long-serving employees, sabbatical leave is an extended period of absence for rest, travel, or personal development, and is not a statutory entitlement.
- Calenderic Leave: This term is sometimes used informally to refer to leave types tied to specific religious or cultural observances beyond the gazetted public holidays, and is usually granted based on company discretion or collective agreements.
