Are Part-time Employees Entitled to Benefits in Malaysia?

Part-time employees may work fewer hours, but their rights under Malaysian labour law remain protected. Here are the main statutory benefits employers must provide to ensure fair and compliant employment practices.

What is a Part-Time Employee?

Under Malaysia’s Employment (Part-Time Employees) Regulations 2010, a part-time employee is defined as someone who:

Works between 30% and 70% of a full-time employee’s normal 48-hour week, i.e., up to 31.5 hours per week.
Has a contract of service (not freelance) with the employer.
May work on a fixed schedule, shift basis, or flexible rotation.

Part-time employees are covered by Malaysian labour law, meaning they are entitled to several of the same protections and benefits as full-time workers, but just on a proportional (pro-rated) basis.

Do Part-Time Employees Receive Benefits in Malaysia?

Yes. Part-time employees are legally entitled to statutory benefits, though most are calculated proportionally based on hours worked compared to full-time employees.

For example, if a full-time employee receives 14 days of annual leave, a part-time employee working half the full-time hours may receive 7 days per year.

With this, the company can ensure fairness and prevent discrimination while allowing employers to scale benefits appropriately.

Statutory Benefits for Part-Time Employees

Even though part-timers work fewer hours than full-time employees, they are still protected under Malaysian labour law.

Below are the statutory benefits that every part-time employee is legally entitled to and what employers must provide to stay compliant.

Employees Provident Fund (EPF)

Under the Employees Provident Fund Act 1991, all employees earning more than RM10 per month, including part-timers, must be registered for EPF contributions. Both employer and employee contribute monthly, with rates based on actual wages earned.

Employers can use the official KWSP contribution table to calculate exact monthly amounts.

Social Security Organisation (SOCSO)

Part-time employees are also protected under SOCSO (PERKESO), which covers workplace accidents, disability, and medical claims. All employees, regardless of working hours, must be registered under the Employees’ Social Security Act 1969.

Employment Insurance System (EIS)

If a part-timer contributes under SOCSO, they are automatically eligible for EIS, which provides income replacement if they lose their job. EIS helps protect part-timers from sudden unemployment, offering short-term financial assistance while they search for new work.

Annual Leave and Sick Leave (Pro-Rated)

Part-time employees are entitled to annual leave, sick leave, and public holidays on a pro-rated basis, depending on the number of working hours or days per week. For example:

A full-time worker entitled to 14 days of annual leave may translate to 7 days for a part-timer working 50% hours.
Sick leave and public holiday pay also follow this ratio.

Record attendance accurately to calculate these entitlements fairly.

Overtime Pay

If part-timers work beyond their agreed hours, they are entitled to overtime pay as outlined in Regulation 5, Employment (Part-Time Employees) Regulations 2010:

Beyond agreed hours but ≤ full-time hours, employee will get 1 time hourly rate
Beyond full-time hours, employee will get 1.5 times hourly rate

Formula:

Overtime Pay = Overtime Hours × Hourly Rate × Overtime Rate

Employers who fail to pay proper overtime may face penalties under the Employment Act 1955.

Optional Benefits (Company-Provided)

Beyond statutory benefits, employers may choose to offer additional perks to improve motivation and retention, especially in competitive industries like retail, hospitality, and logistics.

Common optional benefits include:

Meal or transport allowances for shifts ending late or requiring travel.
Attendance or performance incentives
Medical coverage or insurance
Festive or sales bonuses
Training opportunities

Why Employers Should Offer Benefits to Part-Time Workers

While not every benefit is legally required, providing fair and transparent benefits brings tangible advantages to your company.

Builds Loyalty and Motivation

When part-timers feel valued, they are more committed and less likely to switch jobs frequently.

Attracts Better Candidates

Competitive benefits help employers stand out, especially in high-demand industries like retail, F&B, and customer service.

Reduces Absenteeism and Turnover

Fair benefits create stability and lower recruitment costs caused by constant rehiring.

Enhances Employer Reputation

Companies known for fairness and compliance enjoy stronger branding and better employee referrals, both online and offline.

FAQs

1. Do part-time employees get EPF and SOCSO in Malaysia?

Yes. All employees earning more than RM10/month, including part-timers, must be registered under EPF and SOCSO.

2. Are part-time workers eligible for medical or insurance benefits?

Medical benefits are optional. Employers may offer insurance coverage or clinic access voluntarily through company policy.

3. How do employers calculate annual leave for part-time staff?

Leave entitlements are pro-rated based on working hours or days per week. Example: If a full-time employee gets 14 days, a half-time worker gets about 7 days.

4. Can part-time workers get overtime pay?

Yes. If they work beyond agreed hours, overtime applies under the 2010 Regulations, 1 time up to full-time hours and 1.5 time beyond.

5. What is the minimum working hour for part-time employees to receive benefits?

There is no fixed minimum; benefits like EPF/SOCSO apply to all employees earning above RM10/month. However, leave is prorated based on actual hours worked.

6. Are employers legally required to give benefits to part-time workers?

Yes, for statutory benefits like EPF, SOCSO, EIS, and prorated leave. Other benefits are discretionary but strongly recommended for fairness and retention.

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