Published · By Talent Earth Management

Annual Leave and Sick Leave in Malaysia: What Employers Must Provide

Minimum annual leave and sick leave under the Employment Act, how entitlements grow with service, and how to write a clear leave policy.

Leave is the most common source of everyday HR questions. A clear policy, applied consistently, saves your managers a lot of time and avoids disputes.

Annual leave

For employees covered by the Employment Act, the minimum paid annual leave depends on length of service:

  • Under 2 years of service: 8 days
  • 2 to 5 years: 12 days
  • More than 5 years: 16 days

Many employers give more than the minimum. If your contract promises more, that higher figure applies.

Sick leave

Paid sick leave also increases with service. It starts at 14 days a year for employees with under two years of service and rises to 22 days for those with more than five years. Where an employee is hospitalised, a longer period of paid leave of up to 60 days a year can apply. Check the Act for the exact tiers and how hospitalisation leave interacts with ordinary sick leave.

Sick leave normally requires a medical certificate from a registered practitioner, and your policy should state how soon staff must notify you.

Write the policy clearly

  • Entitlements by years of service, and when the leave year starts.
  • How to apply, who approves and the notice required.
  • Rules on carry-forward, encashment and unused leave at resignation.
  • Medical certificate requirements and the process for sudden absences.
  • How blackout periods or peak seasons are handled.

Keep good records

Track leave balances monthly, include them on payslips or a leave system, and reconcile before year-end. Accurate records make final pay calculations and audits straightforward.

Be consistent

Approve or decline requests using the same criteria for similar roles, and document the reasons.

This article is general information, not legal advice. Check the latest official guidance (HRD Corp, Ministry of Human Resources, Labour Department) for your situation. Sabah and Sarawak have their own labour ordinances.

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