Employment Act Leave Entitlements in Malaysia
Under the Employment Act 1955, employees earning RM2,000/month or less, or involved in manual labour regardless of salary, are entitled to the following statutory leave types:
✅ 1. Annual Leave
Less than 2 years: 8 days per year
2 to 5 years: 12 days per year
More than 5 years: 16 days per year
Note: Leave entitlement accrues after 12 months of service.
What if the employee hasn’t completed 12 months?
Annual leave accrues monthly, starting from the second month of employment. However, under the Employment Act:
Leave can only be claimed after completing 12 months of continuous service, unless the company allows early usage.
If the employee resigns or is terminated before 12 months, they are entitled to pro-rated annual leave based on the months they’ve worked.
Example:
An employee with 8 days/year entitlement who resigns after 6 months is entitled to 4 days of pro-rated annual leave.
Employers may allow employees to take "advance leave" before reaching 12 months, but this is not mandatory under the law.
✅ 2. Sick Leave (Medical Leave)
<2 years: 14 days
2–5 years: 18 days
>5 years: 22 days
Hospitalisation: Up to 60 days (inclusive of outpatient)
✅ 3. Public Holidays
11 paid public holidays annually (5 chosen by the employer)
✅ 4. Maternity Leave
98 consecutive days
For all female employees, regardless of income level
Must have been employed for at least 90 days before delivery
✅ 5. Paternity Leave
7 consecutive days
For married male employees (effective January 2023)
Applicable for 5 births with the same employer
Other Common Leave Types (Subject to Company Policy)
The following types of leave are not covered under the Employment Act but are commonly practiced by Malaysian employers. They fall under internal HR policy and are granted at the discretion of the employer.
🆘 6. Emergency Leave
Not a statutory entitlement.
Often deducted from annual leave balance.
Some companies allocate specific "emergency leave" days as a benefit.
Always clarify if prior or post-approval is required in your leave system.
🔁 7. Replacement Leave
Granted when employees work on public holidays or weekends.
Usually applied on a one-for-one basis (e.g. 1 extra day off for 1 extra day worked).
Should be clearly tracked and approved within your HRMS or leave management system to avoid disputes.
🚫 8. Unpaid Leave
Leave taken without salary, often due to:
Exhausted paid leave
Extended travel or personal issues
Family emergencies
Approval is discretionary and should be documented in writing.
Why Manual Leave Tracking Doesn’t Cut It Anymore
Managing leave balances and entitlements manually invites:
Calculation errors
Policy misalignment
Conflicts with payroll
Poor employee experience
This is where an integrated leave management system within your HRMS or HRIS comes in.
Choosing the Right Leave System in Malaysia
When selecting a leave module within your HRM system, ensure it:
Is Employment Act compliant
Handles part-time and contract staff
Supports multi-location holiday calendars
Integrates with time tracking and payroll
Final Thoughts
Understanding and applying Malaysia’s leave entitlements isn’t just about compliance, it’s about building a fair and efficient workplace. A robust leave management system ensures accuracy, saves HR time, and improves employee satisfaction.
Whether you’re upgrading from spreadsheets or replacing a legacy system, ByteHR offers a seamless experience for managing leave, payroll, HRMS, and HRIS functions—all in one platform.
⚠️ Important Cautionary Note
We’ve made every effort to ensure the accuracy of this article based on publicly available information and industry practice in Malaysia. However, we do not guarantee that the information is complete, up-to-date, or suitable for all situations. We strongly advise businesses and HR professionals to consult qualified legal or payroll experts before acting on any content provided here.
ByteHR does not accept any liability for actions taken or losses incurred based on the use of this article.
