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Employee Benefits in Malaysia

Malaysia is situated in Southeast Asia and consists of 13 states and 3 federal territories. As of April 2012, the country’s unemployment rates were at a low rate of 3%, which is one of the many reasons why people choose to relocate to Malaysia for employment purposes.

As an employee in Malaysia you will be entitled to a number of rights and benefits, regardless of your nationality or citizenship. However, it is fundamental that before commencing with employment there, you obtain and submit the relevant documentation that enables you to lawfully work in the country. It is also important that you have a clear understanding of your full rights and benefits as an employee working in Malaysia (under the Employment Act 1955).

The following is a brief outline of the basic benefits offered to employees working in Malaysia:

Annual Paid Leave

The number of days statutory annual paid leave that you are entitled to will vary depending on which company you work for and the hours that you work. Generally speaking, employees are entitled to between 8 and 16 days annual paid leave per year, in addition to 12 days national holidays (with a total of 15 – 16 holidays depending on the state you reside in).

Working Hours

As a full time employee working in Malaysia you will be expected to complete a 48 hour week on a Monday – Friday Basis. However, your hours may vary depending on the type of employment you undertake. In all states, except in the states of Kedah, Kelantan and Terengganu, offices are closed during weekends. On Fridays, workers are given a lunch break from 12.15pm to 2.45pm, in order to enable Muslims to pray.

Health and Sickness Benefits

Employees are entitled to 60 days full pay for sick leave, including 14 – 22 days for non-hospitalisation. Your years of entitlement will vary depending on the number of years of service you have worked.

As operated by the Social Security Organization, the Government of Malaysia provides a social insurance scheme that aims to protect employees and their families in the event of accidents that result in disablement, death or affliction with occupational diseases.

Retirement Benefits

The Employees’ Provident Fund (EPF) is a scheme that provides retirement benefits to employees. These benefits are accrued for employees and employers through contributions from salaries, which are compulsory for all.



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