Annual Leave Entitlement
An employee is entitled to a certain number of paid annual leave days in addition to rest days and paid holidays. Citing Section 60E(1) from the Employment Act 1955, they are entitled to paid annual leave as stated below:
- Employed less than 2 years: Not less than 8 days per year.
- Employed between 2-5 years: Not less than 12 days per year.
- Employed for more than 5 years: Not less than 16 days pear year.
2026 Public Holidays
In addition to annual leave, employees are entitled to paid leave on public holidays. This includes:
| Holiday | Date |
|---|---|
| New Year’s Day | 1 January |
| Chinese New Year | 17 February |
| Chinese New Year (Second Day) | 18 February |
| Eid Ul Fitri | 21 March |
| Eid Ul Fitri (Second Day) | 22 March |
| Labour Day | 1 May |
| Eid al-Adha | 27 May |
| Wesak Day | 31 May |
| The Yangd di-Pertuan Agong’s Birthday | 1 June |
| Awal Muharram | 17 June |
| Prophet Muhammad’s Birthday | 25 August |
| National Day (Holiday falls on Sat, Sun or a Public Holiday will be observed on the succeeding working day) | 31 August |
| Malaysia Day | 16 September |
| Deepavali | 8 November |
| Christmas Day | 25 December |
Sick Leave
With a medical certificate (MC) from a registered medical practitioner or officer, an employee is entitled to a certain number of paid sick leaves depending on how long they’ve been working for the company.
- Employed less than 2 years: 14 days per year.
- Employed between 2-5 years: 18 days per year.
- Employed for more than 5 years: 22 days per year.
Hospitalization Leave
Where hospitalization is required, employees are entitled to 60 days of hospitalization leave per year.
Maternity and Paternity Leave
- Maternity leave = 98 consecutive days of maternity leave at full pay.
- Paternity leave = 7 consecutive days for up to 5 births for married male employees.
Best Practices for Employers
To effectively manage annual leave, employers should:
- Clear Policies: Establish clear policies on leave accrual, usage, and approval processes.
- Leave Planning: Encourage employees to plan their leave in advance to ensure adequate staffing levels.
- Record-Keeping: Maintain accurate records of leave accrual and usage to ensure compliance with legal requirements.
Employee Rights
Employees have the right to take annual leave and should not be discouraged from taking it. Employers must ensure that leave policies comply with the Employment Act 1955 and relevant agreements.
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Understanding and implementing annual leave policies in Malaysia is essential for creating a positive and compliant work environment. By prioritizing employee well-being and adhering to leave regulations, employers can foster a motivated and productive workforce.
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Please note that all the information listed below are to be used as a general guideline. For more detailed accounts of Malaysia employment laws and regulations, please visit the official governmental websites.
Updated on: April 2026
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