HR tools & guides for Malaysia

Since 1 January 2023, the Act applies to all employees under a contract of service. Some benefits (overtime, rest day and public holiday pay, and termination and lay-off benefits) apply only to employees earning RM4,000 or less a month, and to manual workers and certain other groups listed in the First Schedule regardless of salary.

The national minimum wage is RM1,700 a month. The government announced in Budget 2027 that it will rise to RM2,000 from June 2027, with micro, small and medium enterprises exempt. Check the gazetted Minimum Wages Order for final details.

• Maximum 45 hours a week, and normally no more than 8 hours a day (or 9 hours on a five-day week).
• Overtime on a normal working day is paid at least 1.5× the hourly rate.
• Overtime on a rest day: 2×. Overtime on a public holiday: 3×.
• Overtime is generally capped at 104 hours a month.

Hospitalisation leave: up to 60 days a year, in total with the sick leave above.

• Maternity leave: 98 consecutive days with pay, for eligible female employees.
• Paternity leave: 7 consecutive days with pay for married male employees with at least 12 months’ service, for up to five births.
• An employer may not terminate a pregnant employee, except for misconduct, breach of contract or closure of business.

• At least 11 paid public holidays a year, 5 of which are compulsory: National Day, the Agong’s Birthday, the Ruler’s or Federal Territory Day, Labour Day and Malaysia Day.
• One rest day each week. Working on a rest day earns extra pay (half-day or full-day rate, depending on hours worked).

If the contract does not say otherwise, the minimum notice is:

Either party may pay salary in lieu of notice instead.

For covered employees with at least 12 months’ service who are retrenched or laid off, the minimum benefit for each year of service is:

• Wages must be paid no later than the 7th day after the end of each wage period.
• Employees can apply in writing for a flexible working arrangement (hours, days or place of work). The employer must reply in writing within 60 days, with reasons if it refuses.