Leave entitlement in Malaysia is set by the Employment Act 1955. This guide is for SME owners and new employers in Peninsular Malaysia. It explains how many days of annual leave, sick leave, maternity leave and paternity leave your employees get, and what you must pay attention to as an employer.
In short: paid annual leave is 8, 12 or 16 days a year depending on years of service. Sick leave is 14, 18 or 22 days a year, and up to 60 days if the employee must stay in hospital. Maternity leave is at least 98 consecutive days, and paternity leave is 7 consecutive days. We explain each one in plain words below.
Key Takeaways
- Annual leave depends on years of continuous service with the same employer: 8, 12 or 16 days.
- Sick leave without hospitalisation is 14, 18 or 22 days a year. With hospitalisation it is 60 days a year.
- Maternity leave is at least 98 consecutive days. Paternity leave is 7 consecutive days.
- Eleven public holidays a year are paid holidays under the Act. Five are named in the law and the rest are gazetted.
- Normal working hours must not be more than 45 hours a week.
- The Act covers Peninsular Malaysia. Sabah and Sarawak have their own labour laws.
Who Is Covered by the Employment Act 1955
The Employment Act 1955 is the main law for employer and employee relations in Peninsular Malaysia. Sabah and Sarawak have their own labour ordinances, so check with the labour department of your state if your business is there. Some rules may also differ for certain groups of employees, so check with the Labour Department Peninsular Malaysia (JTKSM) if you are not sure about a particular employee.
Your employment contract can give more than the Act, for example more days of annual leave. It cannot give less.
Annual Leave Entitlement in Malaysia by Years of Service
Section 60E of the Act gives paid annual leave for every 12 months of continuous service with the same employer. If an employee has not completed a full year, the leave is worked out pro-rata. Annual leave is on top of rest days and paid public holidays.
| Years of continuous service | Paid annual leave (days per year) |
|---|---|
| Less than 2 years | 8 |
| 2 years to less than 5 years | 12 |
| 5 years or more | 16 |
Sick Leave and Hospitalisation Leave
Section 60F covers paid sick leave. The employee needs a medical certificate from a registered medical practitioner. The employee must tell the employer within 48 hours, or the absence can be treated as absence without leave.
| Years of service | Sick leave without hospitalisation (days per year) | Sick leave if hospitalisation is needed (days per year) |
|---|---|---|
| Less than 2 years | 14 | 60 |
| 2 years to less than 5 years | 18 | 60 |
| 5 years or more | 22 | 60 |
Example: an employee with 3 years of service gets 12 days of annual leave and 18 days of sick leave a year. That is 30 paid days of leave in total, not counting public holidays or any hospitalisation leave.
Maternity and Paternity Leave
Maternity leave under section 37 is at least 98 consecutive days. It may start up to 30 days before the expected confinement. For the maternity allowance, the woman must have worked at least 90 days in the 9 months before confinement. The allowance is not paid if she already has five or more surviving children.
Paternity leave under section 60FA is 7 consecutive days of paid leave for a married male employee. It applies for up to five confinements. He must have worked for the same employer for at least 12 months, and must give notice at least 30 days before the expected confinement, or as early as possible after the birth.
Public Holidays, Working Hours and Overtime
Employees get eleven paid public holidays a year. Five are named in the Act: National Day, the birthday of the Yang di-Pertuan Agong, the birthday of the state Ruler (or Federal Territory Day), Workers' Day and Malaysia Day. You must display a notice before each year listing the other holidays. If a public holiday falls on a rest day, the next working day becomes the paid holiday.
Normal hours are at most 8 hours a day and 45 hours a week. Overtime is paid at not less than 1.5 times the hourly rate. If an employee works on a public holiday, extra pay applies under section 60D, so check the rules before you set the roster. Our guides on employment laws in Malaysia and the minimum wage change give more background.
Leave Entitlement Checklist for Employers
- Check the years of service of each employee and set the right annual leave and sick leave days.
- Write the leave days clearly in every employment contract and staff handbook.
- Display the list of public holidays before the start of each year.
- Keep records of leave taken, medical certificates and notice dates.
- Plan the roster early when an employee goes on maternity or paternity leave.
Conclusion
Knowing the leave entitlement rules helps you avoid disputes with your team and keeps your payroll correct. Start with the Employment Act, then match it with your contracts and your payroll records. If you also deal with staff exits, read our guide on retrenchment benefits in Malaysia, and see what payroll covers for your monthly process.
How Conzlab can help: Conzlab gives compliance support for SMEs, including a check of your employment contracts and staff policies against labour rules. Contact Conzlab if you would like to talk about your situation.
Official Sources
- Employment Act 1955 (Act 265), updated text as at 1 January 2023, JTKSM
- Labour Law, MyGOV Malaysia Government Portal
Last updated: 12 November 2026. This article is general information, not tax or legal advice. Rules can change, so check with the agency before you act.
Frequently Asked Questions
Under section 60E, 8 days a year for less than 2 years of service, 12 days for 2 to less than 5 years, and 16 days for 5 years or more.
Under section 60F, 14, 18 or 22 days a year depending on years of service, and 60 days a year if the employee must be hospitalised.
Maternity leave is at least 98 consecutive days under section 37. Paternity leave is 7 consecutive days under section 60FA, with conditions such as 12 months of service and being married.
The Act applies in Peninsular Malaysia. Sabah and Sarawak have their own labour laws, so check with the labour department there.
Leave Entitlement Malaysia: Annual, Sick and Maternity Leave