Leave entitlements are one of the most common sources of employee questions, and employer mistakes. Here’s what Malaysian employees are actually entitled to under the Employment Act, current as of 2026.
Annual Leave
Minimum annual leave under the Employment Act is tied to length of service:
- Less than 2 years of service: 8 days per year
- 2 to less than 5 years of service: 12 days per year
- 5 years or more of service: 16 days per year
These are legal minimums. Many employers offer more generously, but falling below these figures is a compliance breach.
Sick Leave
Paid sick leave entitlement also scales with service length:
- Less than 2 years of service: 14 days per year
- 2 to less than 5 years of service: 18 days per year
- 5 years or more of service: 22 days per year
Sick leave requires certification from a registered medical practitioner. Without a valid medical certificate, an absence is generally treated as unpaid or subject to company disciplinary policy, not automatic paid sick leave.
Hospitalisation Leave
Separate from ordinary sick leave, employees are entitled to up to 60 days of paid hospitalisation leave per year if hospitalisation is medically necessary. This is inclusive of, not stacked on top of, the standard sick leave entitlement in most interpretations, confirm the exact interaction with your legal advisor if this comes up in practice.
Maternity and Paternity Leave
Paid maternity leave is 98 consecutive days, and paid paternity leave is 7 days, both effective since 1 January 2023. See our full breakdown of maternity leave entitlement in Malaysia for eligibility conditions.
Common Employer Mistakes
- Applying a flat leave entitlement regardless of service length, instead of the tiered structure the Act requires
- Rejecting sick leave claims without understanding the medical certificate requirement
- Not tracking hospitalisation leave separately from ordinary sick leave
- Using outdated maternity/paternity leave figures still referencing pre-2023 entitlements
Frequently Asked Questions
How many annual leave days are employees entitled to in Malaysia?
8 to 16 days per year depending on length of service, under Employment Act minimums.
Is a medical certificate required for paid sick leave?
Yes, certification from a registered medical practitioner is generally required for sick leave to be paid.
How many days of hospitalisation leave are employees entitled to?
Up to 60 days per year if hospitalisation is medically necessary.
Related Reading
- Employment Act Malaysia: Key Updates Employers Need to Know
- Maternity Leave Malaysia: 98 Days Entitlement
Getting Leave Entitlements Right
Leave miscalculations are one of the most common compliance gaps we see, often from outdated policy documents rather than intentional error. If you’d like your leave policies reviewed against current Employment Act requirements, talk to Righthouse’s HR outsourcing team.
