Malaysia Holiday & Leave Entitlement Policy: A Complete Overview

Welcome to the Malaysia Holiday & Leave Entitlement Policy. As a worker in Malaysia, it's important to know your rights and entitlements when it comes to taking time off from work. The Employment Act 1955 sets out the minimum requirements for annual leave, sick leave, and public holidays for employees in Malaysia, but companies may also have their own policies and practices for leave entitlements.

Under the Employment Act, employees who have worked for a minimum of 12 months with the same employer are entitled to a minimum of 14 days of paid annual leave for each completed year of service. Employees are also entitled to 14 days of paid sick leave per year, which can be accumulated up to a maximum of 60 days. In addition to these basic entitlements, there are 11 public holidays in Malaysia, which are observed nationwide.

It's important to note that while the Employment Act sets out these minimum leave entitlements, companies may offer more generous leave benefits. This could include additional leave benefits such as compassionate leave, maternity leave, paternity leave, and study leave.

Public Holiday 

​​In Malaysia, employees are entitled to 11 paid public holidays throughout the year. These holidays include:

  • New Year's Day - 1st January
  • Chinese New Year - 2 days (dates vary based on the lunar calendar)
  • Federal Territory Day - 1st February
  • Labour Day - 1st May
  • Wesak Day - 1 day (dates vary based on the lunar calendar)
  • Hari Raya Aidilfitri - 2 days (dates vary based on the lunar calendar)
  • Yang di-Pertuan Agong's Birthday - 1st Saturday of June
  • Hari Raya Haji - 1 day (dates vary based on the lunar calendar)
  • National Day - 31st August
  • Malaysia Day - 16th September
  • Deepavali - 1 day (dates vary based on the lunar calendar)
  • Christmas Day - 25th December

Leave Entitlement Policy in Malaysia

The leave entitlement policy in Malaysia aims to balance the needs of employees with the operational requirements of businesses. By providing employees with a range of leave entitlements, employers can help to support their employees in managing their work and family commitments.

Types of Leave

Annual leave 

Employers are required to provide their employees with a minimum of 10 days of annual leave for employees with less than two years of service, and a minimum of 14 days of annual leave for those with two or more years of service.

In addition to the minimum requirements set by law, many employers offer their employees more than the minimum number of days of annual leave, typically based on the length of service of the employee. Some companies also allow employees to carry forward unused annual leave to the following year or provide cash compensation in lieu of unused leave. 

Medical leave 

Employers are to provide a minimum of 14 days of paid medical leave per year. During the medical leave period, employees are entitled to receive their usual salary and benefits from their employer. Employees may be required to provide a medical certificate or other proof of their illness to their employer to qualify for medical leave.

If an employee exhausts their entitlement to paid medical leave, they may be entitled to unpaid sick leave, subject to their employer's approval.

Maternity leave 

Female employees are entitled to a minimum of 14 weeks of maternity. This includes a mandatory period of 14 days of maternity leave, which must be taken before or after the delivery of the baby. In addition to the minimum requirements set by law, some companies offer longer maternity leave periods, with some even offering up to six months of paid maternity leave. Some employers may also offer flexible work arrangements, such as part-time or work-from-home, to help new mothers balance work and childcare responsibilities.

Paternity leave 

Under the Amendment Act, married male employees are entitled to take up to seven consecutive days of paid paternity leave for each confinement, up to five confinements, regardless of the number of spouses. This means that male employees can take paternity leave for each child they have, up to a maximum of five children.

To qualify for paternity leave, male employees must have been employed for a continuous period of at least 90 days with their employer. Male employees must provide their employer with a written notice of their intention to take paternity leave at least one week before the expected delivery date of their child.

Study leave 

Though it is not compulsory, some companies may offer study leave as part of their employee benefits package to encourage their employees' professional development and to enhance their skills and knowledge.

If an employer offers study leave, the terms and conditions of the leave entitlement should be clearly stated in the employment contract or company policy. Some employers may require employees to sign a bond to ensure that they return to work after completing their studies. The bond may require the employee to repay the cost of the study leave or other related expenses if they fail to return to work after completing their studies.

Special leave 

Special leave in Malaysia is a type of non-compulsory leave that is granted to employees for special reasons or circumstances , such as participating in a sports event, attending a conference, or performing Hajj pilgrimage, that are not covered by other types of leave entitlements. 

Emergency leave 

Emergency leave in Malaysia is a type of leave that is given to employees who need to attend to an emergency situation that cannot be postponed or rescheduled. The number of days of emergency leave entitlement varies depending on the employment contract and the employee's length of service.

Replacement leave 

In Malaysia, replacement leave is a form of leave given to employees who work on a public holiday. The purpose of replacement leave is to provide compensation to employees for working on a day that is usually considered a day off for most employees, such as a public holiday. The replacement leave must be taken within 30 days after the public holiday, or at a later time mutually agreed upon by the employee and employer.

Sabbatical leave 

Sabbatical leave is not a mandatory entitlement under the Employment Act 1955, and the availability and duration of sabbatical leave may vary depending on the company policy, employment contract, and the agreement between the employee and employer. Some companies in Malaysia offer sabbatical leave as part of their employee benefits package, typically ranging from one to six months of unpaid leave.

Childcare leave 

Some companies provide childcare leave to employees, allowing them to take time off work to attend to their child's needs, as part of their employee benefits package. The aim of this leave is to help employees maintain a balance between their work and family responsibilities. It's important to note that while female employees are entitled to maternity leave and male employees are entitled to paternity leave under Malaysian labor law, there is no specific legal provision for childcare leave.

Personal leave 

Some companies in Malaysia offer personal leave as part of their employee benefits package, typically ranging from one to five days of paid leave per year. During the personal leave period, employees are entitled to receive their usual salary and benefits from their employer.

Family care leave 

Family care leave is intended to support employees in balancing their work and family responsibilities. It is a type of leave that is granted to employees to attend to the needs of their immediate family members who require care or support due to illness, injury, or other personal emergencies. Some employers provide family care leave to their employees as a component of their benefits package, which usually consists of one to five days of paid leave per year.

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