Employee Benefits in Malaysia

It is a mandatory requirement for all employers in Malaysia to follow the Employment Act 1955 guidelines. These guidelines ensure that all employees are given their fundamental care and rights. Employers are encouraged to create even more benefits that exceed the requirements outlined in the Act. The act is there to serve as a framework.

Under the Employment Act 1955, an employee is entitled to the following benefits:

• Annual leave – Annual leaves in Malaysia are calculated based on the days of service by the employee. For example, the employee would get 8 days of annual leave for every 12 months of service (continually) with the same employer.
• Public holidays – Employees are entitled to paid public holidays here in Malaysia. If you require that your staff works on a public holiday, then the staff must be compensated. Payment on public holidays is double the usual daily rate. If the employee is required to work overtime during the public holiday, they are entitled to receive triple pay.
• Maternity leave – As of Malaysia’s Budget 2020, 90-days of maternity leave was proposed by the Government for employees working in the private sector. This came into effect on 1 January 2021.

Other mandatory benefits outlined in the Act include:

• Sick leave
• Hospitalisation leave
• Lay-off benefits

Aside from the benefits above which are listed in the guideline, employees are encouraged to offer the following benefits too:

• Medical insurance
• Dental cover
• Personal accident insurance
• Optical coverage
• Travel allowance
• Parking allowance
• Internet allowance
• Professional training and personal development
• Remote working benefits
• Relocation assistance (if needed)
• Travel incentives
• Education assistance
• Employment injury coverage (SOCSO)