9 Types of Paid Leave in Malaysia

Managing leave entitlements is one of the most important parts of HR and payroll. Understanding the different types of paid leave in Malaysia helps ensure compliance with the Employment Act 1955 (as amended in 2022), while also supporting employees’ well-being and work-life balance. Some leaves are mandatory under law, while others are provided at the company’s discretion as part of competitive benefits.

Below, we break down the key types of paid leave in Malaysia, both compulsory and optional, and highlight what employers need to know.

1. Annual Leave

Employees are entitled to paid annual leave based on their years of service with the same employer:

Less than 2 years: 8 days
2–5 years: 12 days
More than 5 years: 16 days

Unused leave should ideally be taken within 12 months, but employers may allow carry-forward or encashment. Pro-rata leave applies to employees who have not yet completed 12 months.

Annual leave is crucial for rest and productivity. Employers should also establish clear policies on carry-forward limits and encashment to avoid disputes.

2. Sick Leave & Hospitalisation Leave

Under Section 60F of the Employment Act, sick leave entitlements vary by years of service:

Less than 2 years: 14 days
2–5 years: 18 days
More than 5 years: 22 days

In addition, employees are entitled to up to 60 days of hospitalisation leave per year. To qualify, employees must provide a medical certificate (MC) from a registered medical practitioner. Employers should ensure that HR policies specify reporting timelines (within 48 hours) to manage leave properly.

3. Maternity Leave

Since the 2022 amendment, maternity leave in Malaysia has been extended to 98 days for each confinement.

Eligibility requires:

At least 90 days of employment in the past 9 months, and
Employment with the same employer within 4 months before delivery.

Maternity allowance is paid at the employee’s ordinary monthly wages. Employers cannot dismiss pregnant employees due to pregnancy-related illness, except for valid reasons such as misconduct or business closure.

4. Paternity Leave

Married male employees are entitled to 7 consecutive days of paid paternity leave per childbirth, capped at five confinements regardless of the number of spouses.

Eligibility:

At least 12 months of continuous service, and
Written notice to the employer at least 30 days before the expected confinement (or as soon as possible after birth).

5. Public Holidays Leave

Employees are entitled to 11 gazetted public holidays each year, at their ordinary rate of pay.
Five must include:

National Day
Yang di-Pertuan Agong’s Birthday
Ruler/State Governor’s Birthday or Federal Territory Day
Workers’ Day
Malaysia Day

Employers must display the remaining six holidays at the start of the year. If a public holiday falls on a rest day, the next working day becomes a replacement holiday. Employees required to work on a public holiday must be paid double wages in addition to holiday pay.

6. Emergency Leave (Part of Annual Leave Policy)

The Employment Act does not define emergency leave, but employers often allow employees to take time off without prior notice for urgent matters (such as family illness or accidents). These are usually deducted from annual leave. Having a clear leave management policy helps prevent misuse.

7. Marriage Leave (Optional, Company Policy)

Not mandated by law, but many employers provide 2–3 days of paid leave for marriage. Some extend this to employees attending the weddings of immediate family members. Offering marriage leave is considered a goodwill practice that improves employee morale.

8. Compassionate/Bereavement Leave (Optional)

Also not legally required, but widely offered. Employers typically grant 2–5 days of paid leave when an employee loses an immediate family member

Recognising compassionate leave is an important part of employee well-being, especially in industries where retention and loyalty are critical.

9. Other Special Paid Leaves (Company Discretion)

Some employers extend additional discretionary leave types:

Adoption Leave: granted when legally adopting a child.
Quarantine Leave: introduced during the COVID-19 pandemic as precedent.
Hajj Leave: common for Muslim employees, usually once in a lifetime.
Replacement Leave: when employees work on rest days or optional public holidays instead of receiving overtime pay.

These discretionary benefits can make a company more attractive to talent in a competitive job market.

FAQs

How many types of paid leave are compulsory in Malaysia?

Annual leave, sick leave (including hospitalisation), maternity leave, paternity leave, and 11 public holidays are mandatory under the Employment Act 1955. Other leaves are optional.

Can employers refuse paid sick leave?

No. As long as the employee provides a valid MC and follows reporting rules, employers must approve paid sick leave.

Is compassionate leave mandatory in Malaysia?

No, it is not mandated by law, but many employers grant 2–5 days as a best practice.

What happens if a public holiday falls on an off day?

The next working day will be treated as the replacement public holiday.

Do all employees get the same number of annual leave days?

No. Entitlement depends on years of service: 8, 12, or 16 days.

Can unused annual leave be carried forward?

Yes, but it depends on company policy. Employers may allow carry-forward or encashment of unused leave at their discretion.

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