Malaysia Working Hours Regulation 2025: Key Updates

As we head into 2025, it’s important for employers in Malaysia to stay updated on the latest working hours regulations.

These rules affect how you manage your workforce and ensure compliance with the law.

From the maximum number of working hours to overtime policies, there’s a lot to know.

In this article, we’ll break it down for you in simple terms, so you can easily navigate the new regulations and avoid any compliance issues.

Current Working Hours Regulations in Malaysia

Simply put, working hours refer to the total amount of time an employee spends on the job, performing their duties.

This doesn’t include time spent on breaks, rest periods, or lunch breaks.

Working hours are a key element in managing employee schedules and ensuring businesses comply with labor laws. 

According to the Employment Act 1955, the maximum number of hours an employee can work is 8 hours per day (excluding breaks), and 45 hours per week.

This was recently reduced from 48 hours per week to promote a better work-life balance while ensuring employees remain productive. 

Employers must also ensure that employees don’t work more than 5 consecutive hours without taking a break of at least 30 minutes.

 

Who is covered and not covered by the Employment Act?

When it comes to working hours regulations under the Employment Act 1955, the Act applies to most employees in Malaysia, but there are some exceptions:

1. Exemption for high earning employees

Employees earning above RM 4,000 per month (except manual workers) are exempt from certain provisions of the Act, including:

• Overtime rates for rest days,

• Overtime rates for public holidays,

• Overtime rates for work outside regular hours,

• Allowances for shift work,

• Termination, lay-off, and retirement benefits.

 2. Exemption for domestic workers

Domestic workers, such as maids or housekeepers, are not covered by the Employment Act.

This means they are excluded from the standard working hours regulations and other provisions in the Act.

3. Exclusions for Sabah and Sarawak

The Employment Act doesn’t apply to employees in Sabah and Sarawak, as they are governed by their own Labour Ordinances.

 

Changes to Working Hours in 2025

There are some key updates to the Malaysia working hours regulation in 2025 that you need to be aware of. Here’s a breakdown of the changes:

New maximum working hours

Starting in 2025, the maximum weekly working hours will be 45 hours per week.

This remains the same as this year's regulation, but the key focus now is on ensuring a better work-life balance while keeping productivity high. 

Employees will work 8 hours a day, and the total workweek is capped at 45 hours. 

Overtime policies

Overtime is any work done beyond the regular working hours outlined in the Employment Act.

For employees covered by the Act, overtime pay works like this:

• If an employee works beyond normal hours on a regular day, they get paid 1.5 times their usual hourly rate.

• If the work is done on a rest day, the rate jumps to 2 times the normal hourly rate.

• And if an employee works on public holiday, they earn 3 times the usual rate.

Employers are obligated to pay overtime for any work that exceeds the 45-hour weekly limit.

However, there’s a monthly cap of 104 overtime hours to prevent employees being overworked and ensure they have enough time to rest and recharge.

 

Breakdown of working days in Malaysia

In total, there are 248 working days when counting weekends and public holidays in Malaysia. It’s also assuming a standard 5-day workweek (Monday to Friday). 

Here’s a breakdown of the number of working days in each month of the year.

However, the number of working days varies in each state or territory.