In Malaysia, employers must provide certain types of leave by law. While companies can offer more leave, many are mindful of maintaining balance. With 50% of employees saying they’d leave their job for better work-life balance, it’s important to get leave policies right.
Here’s a simple guide to the types of leave that are required by law and some optional ideas for employers who want to go the extra mile.
Types of Mandatory Leave
These are the leave types all employers must provide according to the law.
Paid Annual Leave
Everyone needs a break! Employees are entitled to paid days off to rest while still earning their salary. The number of days depends on how long they’ve been with the company:
| Years of Service | Annual Leave Entitlement |
| 1–2 years | 8 days |
| 2–5 years | 12 days |
| >5 years | 16 days |
If someone’s worked less than a year, their leave is worked out based on how many months they’ve been there. Note that annual leave is separate from sick days, public holidays, and rest days.
Paid Sick Leave
If an employee gets sick and provides a doctor’s note, they’re entitled to paid sick leave. The amount of sick leave depends on their length of service:
| Years of Service | Sick Leave Entitlement |
| 1–2 years | 14 days |
| 2–5 years | 18 days |
| >5 years | 22 days |
Employees need to tell their employer they’re sick within 48 hours, or they may be marked absent without reason.
Hospitalisation Leave
If someone needs to be hospitalized, they’re entitled to an extra 60 days of leave on top of their regular sick leave.
74 days annually if employed for 1 – 2 years
78 days annually if employed for 2 – 5 years
82 days annually if employed for more than 5 years
Maternity Leave
Female employees who meet certain requirements are entitled to 98 days of paid maternity leave. They must have worked at least 90 days in the nine months before childbirth and been employed in the four months leading up to it.
Paternity Leave
New dads get 7 days of paid paternity leave if they’re legally married to the child’s mother. This was introduced in the 2023 update to the Employment Act.
Public Holidays
Employees are entitled to 11 paid public holidays each year. Five of these must be:
- National Day
- The Yang di-Pertuan Agong’s Birthday
- The Ruler of the State’s Birthday or Federal Territory Day
- Workers’ Day
- Malaysia Day
Final Thoughts
By knowing what leave is mandatory, employers can make sure their workplace is following the law. But why stop there? Offering more types of optional leave is a great way to improve employee satisfaction and promote a healthy work-life balance.