Annual Leave & Other Leave Policies in Malaysia

Understanding annual leave policies in Malaysia is essential for both employees and employers to ensure compliance with labour laws and foster a balanced work-life environment. This guide provides detailed information on annual leave entitlements, regulations, and best practices in Malaysia.

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:

Length of ServiceAnnual Leave Entitlement
Less than 2 years8 days
2 to 5 years12 days
More than 5 years16 days

 

Public Holidays

In addition to annual leave, employees are entitled to paid leave on public holidays. This includes:

HolidayDate
New Year’s Day1 January
Chinese New Year30 January
Eid Ul Fitri31 March
Eid Ul Fitri (Subject to change)1 April
Good Friday18 April
Easter Monday21 April
Bank Holiday / Labour Day5 May
Spring Bank Holiday26 May
The Yangd di-Pertuan Agong’s Birthday2 June
Eid Ul Adha (Subject to change)7 June
Awal Muharram27 July
Summer Bank Holiday25 August
National Day (Holiday falls on Sat, Sun or a Public Holiday will be observed on the succeeding working day)31 August
Maulidul Rasul5 September
Malaysia Day16 September
Deepavali20 October
Christmas Day25 December
Boxing Day26 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.

Length of ServiceSick Leave Entitlement
Less than 2 years14 days
2 to 5 years18 days
More than 5 years22 days

 

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.

Simplify Asia & the Middle East Expansion with Links' EOR Services!

Effortlessly navigate employment compliance in Asia & the Middle East. Our dedicated EOR experts provide personalised solutions for your hiring needs!

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.

Want to stay up to date with the latest labour laws?

Our publications give you a clear overview of key labour law regulations. We cover major tax, labour law, payroll and visa information. It is designed to get you updated at-a-glance!

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 2025