Problems we solve

Services

Solutions

Why CXC

Resources

Connect

Global Hiring Contact us

Let´s talk

OUTLINE

Annual leave in Malaysia

Parental leave in Malaysia

Adoption leave in Malaysia

Other leave types in Malaysia

Public holidays in Malaysia

Safeguard your employees and business in Malaysia

Leave and time off in Malaysia

When managing employees in Malaysia, understanding the various types of time off available is crucial for ensuring compliance and maintaining employee satisfaction. Time off entitlements in Malaysia includes a combination of statutory and non-statutory leaves, all of which must be clearly outlined in a company leave policy.

Statutory leaves, such as annual leave, are governed by the Employment Act 1955. Employees with less than two years of service are entitled to a minimum of 8 days of annual leave, while those with more than 5 years of service receive up to 16 days. Parental leave, including maternity and adoption leave, is also part of Malaysia’s time off policy. Maternity leave is typically 60 days, while adoption leave may vary, though it is generally at least 60 days, with full salary for the first 30 days. Parental leave allows employees to bond with their child and is an essential part of employee well-being.

In addition to statutory leave, non-statutory leave types are also important to consider. These may include sick leave in Malaysia, compassionate leave, marriage leave, unpaid leave, and study leave. These types of leave are often offered by employers to enhance employee engagement and overall satisfaction. For example, compassionate leave allows employees time off to grieve the loss of a close family member, while marriage leave offers time off for weddings.

Employers should ensure they have a clear and comprehensive time off policy in Malaysia to maintain compliance with legal requirements and create a positive workplace culture. By offering a well-rounded approach to leave, companies can attract and retain talented employees while supporting their personal needs.

Annual leave in Malaysia

Paid time off is an important aspect of employment in Malaysia, and annual leave is a core component of that. Employees expect to be given adequate rest days as part of their overall compensation, and failing to meet this expectation can affect morale and retention. To avoid misunderstandings and remain compliant with local regulations, employers must understand how annual leave in Malaysia is structured and applied.

Annual leave entitlement in Malaysia

Minimum annual leave entitlement in Malaysia is determined by the Employment Act 1955 and is based on the employee’s length of service:

Less than 2 years of service: 8 days per year.
2 to 5 years of service: 12 days per year.
More than 5 years of service: 16 days per year.

These minimum entitlements apply to employees working under a contract of service, including both full-time and part-time workers. It is common for employers to offer more generous leave allowances as part of competitive benefits packages, particularly in industries where talent retention is a priority.

Leave is usually accrued based on the calendar year, from January to December. For new hires or employees who leave mid-year, leave is pro-rated based on the number of completed months of service.

Annual leave rules in Malaysia

There are specific annual leave rules in Malaysia that employers should note. Employees must take their annual leave within 12 months of earning it. Unused leave that goes beyond this period may be forfeited, unless otherwise agreed upon in the employment contract.

In practice, many organisations allow employees to carry forward a limited number of unused leave days, typically up to the first quarter of the following year. However, this is at the discretion of the employer and must be clearly communicated through leave policies.

The annual leave definition in Malaysia strictly refers to paid days off for rest and personal time, exclusive of public holidays and other types of leave such as sick leave or maternity leave.

Employers should ensure their leave policies are clearly documented and shared with all staff, especially where entitlements exceed the legal minimum. Doing so not only promotes transparency but also supports a healthier, more engaged workforce.

Parental leave in Malaysia

Parental leave policies in Malaysia are guided by legislation and company practices, and they continue to evolve to support working parents. Both maternity and paternity leave are now statutory entitlements under the Employment Act 1955. However, there is currently no legal provision for shared or extended parental leave in Malaysia, so it is important for employers to understand what is required by law and what additional benefits they might offer to attract and retain talent.

Maternity leave in Malaysia

Under the Employment Act 1955, female employees are entitled to 98 consecutive days of fully paid maternity leave. The leave period can begin no earlier than 30 days before the expected delivery date. This statutory maternity leave in Malaysia applies only to the employee’s first five surviving children.

A woman may return to work before the end of the 98-day period if she obtains her employer’s consent and is certified fit to work by a registered medical practitioner. Employers are prohibited from terminating a female employee during her maternity leave except under specific legal grounds.

Malaysia’s maternity leave rules ensures that employees covered under the Act, generally those earning up to 4,000 MYR per month or engaged in manual labour, receive this entitlement. However, many employers extend this benefit to all employees regardless of salary or job category, as part of a broader employee benefits programme.

Paternity leave in Malaysia

As of 2023, statutory paternity leave in Malaysia entitles married male employees to seven consecutive days of paid leave per birth. To qualify, the employee must have at least 12 months of continuous service with the same employer, and he must notify his employer at least 30 days before the expected delivery date.

The paternity leave entitlement under Malaysia’s Employment Act applies regardless of whether the employee is on probation. However, employers are encouraged to clarify leave policies for probationary employees in their contracts and handbooks.

Additional time off for parents in Malaysia

Currently, there is no legal requirement for additional parental leave in Malaysia, such as shared or extended leave between parents. However, some companies voluntarily provide additional benefits like unpaid parental leave, childcare leave, or even flexible working arrangements for new parents.

Employers aiming to position themselves as family-friendly workplaces may find it worthwhile to offer these supplementary benefits. Doing so not only supports employee well-being but also contributes to retention and morale in the long term.

While statutory entitlements set the minimum benchmark, companies that go beyond compliance in areas like maternity leave, paternity leave, and broader family policies often stand out in a competitive job market.

Adoption leave in Malaysia

While parental leave in Malaysia is primarily framed around maternity and paternity entitlements, employers should also be aware of adoption leave in the country and how it supports employees building families through adoption. Though not explicitly regulated under the Employment Act 1955, adoption leave is increasingly being included in company policies, especially within multinational organisations and progressive local firms.

In general, adoption leave grants eligible employees time off to care for and bond with their adopted child. Policies vary by employer, but it is common to see at least 60 days of leave granted for child adoption in Malaysia leave. Typically, employees receive full salary for the first 30 days, while the remainder of the leave may be either unpaid or paid at a reduced rate, depending on the company’s internal policy or any applicable collective agreement.

Eligibility often requires a minimum period of continuous employment. Companies may also request documentation of the adoption process, in line with Malaysia’s adoption law, to process the leave request.

Although Malaysia does not currently mandate adoption leave under national legislation, providing such leave is an important step in aligning workplace policies with the evolving needs of modern families. It helps create a more inclusive and supportive work environment, while also reinforcing an employer’s commitment to employee wellbeing.

To remain competitive and compassionate, Malaysian employers are encouraged to formalise their adoption leave policies and communicate them clearly. Doing so not only supports employees during a significant life transition but also contributes to higher levels of retention and job satisfaction.

Employers unsure how to structure adoption-related leave can benefit from working with experts like CXC, who can help design compliant and compassionate policies aligned with global best practices.

Other leave types in Malaysia

Paid time off isn’t limited to annual or parental leave. Employers in Malaysia often offer a range of other leave types to support employee wellbeing, respond to personal events, and enhance overall job satisfaction. While some of these leave types are mandatory under Malaysian law, others are discretionary and vary between organisations. Familiarity with different kinds of leave in Malaysia can help employers build a more supportive and competitive work environment.

Sick leave in Malaysia

Employees are entitled to paid sick leave in Malaysia if certified by a registered medical practitioner. The Employment Act 1955 sets out the statutory entitlement as follows:

Less than 2 years of service: 14 days per calendar year.
2 to 5 years of service: 18 days per calendar year.
More than 5 years of service: 22 days per calendar year.

This entitlement applies only if hospitalisation is not necessary. If hospitalisation is required, employees are entitled to up to 60 days of paid sick leave, inclusive of ordinary sick leave.

Medical and hospitalisation leave in Malaysia

Beyond standard sick leave, medical leave in Malaysia also covers hospitalisation. Hospitalisation leave is granted when a doctor determines the employee needs inpatient treatment or extended medical supervision. The total number of paid sick and hospitalisation days combined may not exceed 60 days in a year.

Employers are encouraged to ensure that employees know their entitlements and that policies are communicated clearly.

Marriage leave in Malaysia

While not required by law, marriage leave in Malaysia is a popular discretionary benefit. Employers typically offer between 1 to 3 days of paid leave for an employee’s wedding. Some also extend it to weddings of close family members. These policies depend on company guidelines and should be outlined in employment contracts or handbooks.

Bereavement leave in Malaysia

In Malaysia, bereavement leave entitlement is not covered under statutory law, but many employers offer compassionate leave entitlement for the death of close family members. This typically ranges from 2 to 5 days of paid leave. Relationships covered often include parents, siblings, spouses, or children, though some employers may include extended family depending on the situation.

Other additional leave types in Malaysia

In addition to the above, Malaysian employers frequently offer other types of leave to support employee needs. These are not required under the Employment Act but are increasingly common in competitive benefits packages:

Compulsory leave: Employers may require staff to use their annual leave during company shutdowns or festive seasons.
Compensation leave: Offered when employees work on public holidays or rest days. Also known as replacement leave, this compensates employees with another paid day off.
Hajj leave: Muslim employees may be granted 30–40 days of unpaid or partially paid leave to perform the pilgrimage. This is not mandated by law but is a widely respected benefit.
Emergency leave: Granted for urgent personal matters. Usually deducted from annual leave.
Unpaid leave: Permits time off without salary, often used when statutory or contractual leave has been exhausted.
Birthday leave: Some employers offer a paid day off on or around the employee’s birthday.
Childcare leave: Time off to care for a sick child or attend to school-related needs. Commonly included in progressive HR policies.
Study leave: Encourages professional development by allowing time off for exams, coursework, or training.

Offering these types of leave in Malaysia can help employers attract and retain top talent, while also promoting a more balanced and humane workplace culture.

Public holidays in Malaysia

Public holidays are a significant part of work culture in Malaysia. They are designated by the government and may be observed nationwide (federal holidays) or at the state level. Because holidays are legislated at both federal and state levels, and several are based on lunar calendars, the exact dates and total number of holidays vary by state and year.

For employers, understanding Malaysia’s public holiday structure is essential for workforce planning, payroll accuracy, and legal compliance.

National (federal) public holidays in Malaysia

Malaysia observes 11 federal public holidays that apply nationwide. These typically include:

New Year’s Day (not observed in some states).
Chinese New Year (2 days).
Labour Day.
Wesak Day.
Hari Raya Aidilfitri (2 days).
Hari Raya Haji.
Merdeka Day (Independence Day).
Malaysia Day.
Prophet Muhammad’s Birthday.
Deepavali (not observed in Sarawak).
Christmas Day.

Employees are generally entitled to paid leave on applicable federal public holidays if they fall on a normal working day.

State and regional public holidays in Malaysia

In addition to federal holidays, each state observes its own public holidays, which may include:

Birthdays of state rulers or governors.
State foundation or heritage days.
Additional religious observances.

These holidays vary significantly between states such as Selangor, Johor, Penang, Sabah, Sarawak, and others. As a result, the total number of public holidays per employee often ranges between 18 and 20 days per year, depending on location.

Employees are entitled to observe state-specific holidays applicable to the state in which they work.

Paid public holidays in Malaysia

Under the Employment Act 1955, employees are entitled to paid public holidays that fall on their normal working days.

If an employee is required to work on a public holiday, the employer must provide one of the following:

A substitute day off, or
Double the employee’s daily rate of pay, depending on contractual terms.

These rules apply to both federal and applicable state holidays.

Safeguard your employees and business in Malaysia

As an employer in Malaysia, it is crucial to understand your employees’ rights and entitlements under local labour laws. However, keeping up with the constantly evolving regulations can be challenging.

When you partner with CXC, we ensure that your employment engagements comply with all local and national labour laws and regulations. This way, your employees will receive the benefits they are entitled to, and your business will be protected from potential risks.

Read about EoR services

FAQ's

How does paid time off work in Malaysia?

Paid time off in Malaysia includes annual leave, sick leave, hospitalisation leave, maternity and paternity leave, and paid public holidays, with minimum entitlements set by law.

For employees in Peninsular Malaysia and Labuan, these minimum rights are mainly covered by the Employment Act 1955. Sabah and Sarawak have their own labour ordinances, so employers with teams across Malaysia need to check where each employee works rather than applying one leave policy without reviewing the local rules. Both ordinances were substantially amended with effect from 1 May 2025, so employers should ensure that their policies reflect the amended requirements.

Employers can offer more leave than the statutory minimum. This is common where a company has a regional or global leave policy in Malaysia that provides additional annual leave or company-specific benefits such as compassionate, marriage or study leave.

Statutory leave types also need to be kept separate. For example, annual leave is additional to paid public holidays, and if an employee becomes entitled to sick or maternity leave while taking annual leave, those days should not be deducted from their annual leave entitlement.

What is the statutory leave entitlement in Malaysia?

Employees in Peninsular Malaysia and Labuan are entitled to paid annual leave, sick leave, hospitalisation leave, maternity or eligible paternity leave, and paid public holidays under the Employment Act 1955.

The main minimum entitlements are:

Annual leave: 8, 12 or 16 days based on length of service.

Sick leave: 14, 18 or 22 days based on length of service.

Hospitalisation leave: 60 days per calendar year, separate from ordinary sick leave.

Maternity leave: 98 consecutive days.

Paternity leave: 7 consecutive days for eligible married male employees.

Public holidays: 11 paid gazetted public holidays, plus any public holiday specifically declared for that year under section 8 of the Holidays Act 1951.

The Employment Act applies these protections to private-sector employees regardless of salary, although some provisions elsewhere in the Act have separate salary-based exclusions.

Sabah and Sarawak should be checked separately because their leave entitlements are governed by their respective labour ordinances. Both ordinances have applied in substantially amended form since 1 May 2025.

How many annual leave days do employees get in Malaysia?

Employees in Peninsular Malaysia and Labuan receive at least 8, 12 or 16 paid vacation days in Malaysia each year, based on how long they have worked for the same employer.

The statutory entitlement is:

Less than 2 years: 8 days.

2 to less than 5 years: 12 days.

5 years or more: 16 days.

If employment ends before an employee completes a full 12 months, annual leave is calculated in proportion to the completed months of service. Employers can provide more generous annual leave through the employment contract or company policy.

Employees generally need to take statutory annual leave within 12 months after the end of the 12-month period in which it was earned. Payment instead of taking the leave is allowed where the employer asks the employee not to take it and the employee agrees in writing. Unused statutory leave must generally be paid when employment ends, except in certain misconduct dismissals.

How does sick leave work in Malaysia?

Paid sick leave in Malaysia is 14 days for employees with less than two years of service, 18 days for two to less than five years, and 22 days for employees with at least five years of service. Employees can also receive up to 60 days of paid hospitalisation leave per calendar year. Since January 2023, this is separate from ordinary sick leave, giving a total annual entitlement of 74, 78 or 82 days based on length of service.

The illness generally needs to be certified by the employer’s appointed registered doctor. If that doctor is not available within a reasonable time or distance, another registered medical practitioner or medical officer can certify the leave. Certification by a dental surgeon can also qualify.

Employees must inform or try to inform their employer of the sick leave within 48 hours after it begins. A doctor can also certify that hospitalisation is necessary even if the employee is not actually admitted to hospital.

What maternity and paternity leave are employees entitled to in Malaysia?

Employees in Peninsular Malaysia and Labuan are entitled to 98 consecutive days of maternity leave and, for eligible married male employees, seven consecutive days of paid paternity leave.

For paid maternity leave in Malaysia, an employee must generally have worked for the employer for at least 90 days during the nine months before giving birth and have been employed by that employer at some point during the four months immediately before the birth. The Employment Act has separate eligibility rules for the maternity allowance, including a restriction where the employee has five or more surviving children.

For paternity leave, the employee must be married and have worked for the same employer for at least 12 months. He must also notify the employer at least 30 days before the expected birth or as soon as possible afterwards. The entitlement is limited to five confinements, irrespective of the number of spouses, and starts on the date the employee’s wife gives birth.

When can maternity leave start in Malaysia, and can an employee begin maternity leave before the expected confinement date?

Maternity leave in Malaysia can start up to 30 days before the expected confinement date and must start no later than the day immediately after the employee gives birth.

Yes, an employee can therefore begin maternity leave before the expected birth, but the statutory maternity leave period cannot normally begin more than 30 days beforehand. If she stops working earlier than that, those additional days are not treated as statutory maternity leave and do not qualify for maternity allowance under the Employment Act.

There is also a specific medical provision. If a doctor appointed by the employer certifies that the employee is unable to perform her duties because of the advanced stage of pregnancy, she may be required to start maternity leave during the 14 days before the expected confinement date.

The employee should notify the employer of the pregnancy and intended maternity leave start date during the 60 days before the expected confinement date, subject to the detailed statutory notification rules, so HR and payroll can prepare for the leave.

What other leave and time-off rights exist in Malaysia?

Beyond annual, sick, maternity and paternity leave, employees in Malaysia have rights to weekly rest days and paid public holidays, while other types of leave such as compassionate, marriage, Hajj, study and childcare leave are generally provided through company policy rather than the Employment Act.

Employees covered by the Employment Act are generally entitled to one whole rest day each week. This is different from annual leave and public holidays.

There is no general statutory entitlement under the Employment Act 1955 to paid compassionate or bereavement leave, marriage leave, adoption leave, Hajj leave or study leave. Employers can choose to provide these as additional benefits and should state the entitlement, eligibility and whether the leave is paid in their company policy.

Malaysia also gives employees a statutory right to request a flexible working arrangement, including changes to their hours, days or place of work. This is not an additional leave entitlement, but it can be relevant when employees need more flexibility for caring or personal responsibilities. The request must be made in writing, and the employer must generally approve or refuse it within 60 days. A refusal must be accompanied by written reasons.

Are public holidays in Malaysia separate from annual leave?

Yes. Paid public holidays in Malaysia are separate from annual leave and should not be deducted from an employee’s annual leave entitlement. The Employment Act specifically states that paid annual leave is additional to rest days and paid holidays.

Employees in Peninsular Malaysia and Labuan are entitled to 11 paid gazetted public holidays each calendar year. Five are fixed by law: National Day, the Yang di-Pertuan Agung’s Birthday, the relevant State Ruler or Governor’s Birthday or Federal Territory Day, Workers’ Day and Malaysia Day. Employers select the remaining six from the applicable gazetted holidays and must notify employees before the start of the calendar year.

Malaysia also has state-specific holidays, which is important for employers with employees in different locations.

If a statutory public holiday falls while an employee is already on annual or sick leave, or during a qualifying period of temporary disablement, another paid holiday must be provided in its place.

How do employers manage leave policies in Malaysia?

Employers should manage a leave policy in Malaysia by setting out each type of leave, who qualifies, how much leave employees receive, how requests are made and what documents HR needs.

The policy should distinguish between annual leave, ordinary sick leave, hospitalisation leave, maternity and paternity leave and public holidays. This is particularly important since ordinary sick leave and the 60-day hospitalisation entitlement are now separate.

HR should also track length of service because annual and ordinary sick leave increase after two and five years. Maternity and paternity leave have their own eligibility and notice requirements, while public holidays can vary based on the state where the employee works.

For businesses with employees across Malaysia, one policy may also need different local rules for Peninsular Malaysia, Sabah and Sarawak. Policies covering Sabah or Sarawak should reflect the labour-ordinance amendments in force since 1 May 2025. Employers can provide benefits above the statutory minimum, but the policy should make it easy for employees and managers to see which leave is required by law and which additional leave is provided by the company.

How does CXC help businesses create compliant leave policies in Malaysia?

CXC helps businesses create leave policies in Malaysia that include the statutory entitlements employees must receive and any additional leave the company chooses to offer.

We can help employers set out the correct rules for annual leave, sick and hospitalisation leave, maternity and paternity leave, and paid public holidays. The policy can also cover how leave is requested, what documents employees need to provide, how unused leave is handled and which additional benefits, such as compassionate or marriage leave, are offered by the company.

CXC can also help international employers account for local differences. The Employment Act 1955 applies in Peninsular Malaysia and Labuan, while Sabah and Sarawak have their own labour ordinances. Public holidays can also vary by state.

This gives your HR team a leave policy that fits Malaysian requirements while still working with your wider company policies and benefits.

Speak to our team to learn more about managing leave and time off in Malaysia with CXC.

Compliantly hire employees anywhere with CXC

With our EoR solution, you can engage workers anywhere in the world, without putting your business at risk. No more worrying about local labour laws, tax legislation or payroll customs — we’ve got you covered.

Our EoR solution

DISCLAIMER: The information contained on this website is provided for general informational purposes only and should not be construed as legal, tax, or other professional advice on any subject matter. While we endeavor to ensure that the content is accurate and up to date, we make no warranties or representations of any kind regarding the completeness, accuracy, reliability, suitability, or availability of the information contained herein. The content on this site is not intended to be a substitute for professional advice. Users should not act or refrain from acting based on any information on this website without seeking the appropriate legal, tax, or other professional advice tailored to their specific circumstances from qualified professionals. We expressly disclaim all liability in respect to actions taken or not taken based on any or all of the contents of this website. Use of the information on this site does not create an attorney-client, tax advisor-client, or any other professional-client relationship between the user and the website or its authors.

BLOG

Helping businesess to compliantly engage talent since 1992