📌 Annual Leave Entitlement Under Malaysia’s Employment Act 1955

Annual leave is one of the minimum statutory benefits provided under the Employment Act 1955. Here’s what every employer and employee should know:

📅 Minimum Annual Leave Entitlement

Based on years of service:

• Less than 2 years: 8 days
• 2 years to less than 5 years: 12 days
• 5 years and above: 16 days

Employers may offer more than the statutory minimum, but not less.

📌 Pro-rated Leave

Employees who join partway through the year are generally entitled to pro-rated annual leave, calculated based on their completed months of service.

📌 Unused Annual Leave

Annual leave should generally be taken within 12 months after the end of the leave entitlement year.

Employers may also have policies on:

• Leave carry forward
• Leave forfeiture
• Encashment of unused leave

📌 Resignation or Termination

If an employee leaves the company with earned but unused annual leave, they are generally entitled to be paid for those unused days, subject to the Employment Act and their employment contract.

📌 Annual Leave vs Other Leave

Annual leave is different from:

• Public Holidays
• Sick Leave
• Hospitalisation Leave
• Maternity Leave
• Paternity Leave
• Unpaid Leave

Each type of leave has its own eligibility and legal requirements.

💡 HR Tip

The Employment Act 1955 sets the minimum standard. Many employers provide additional annual leave as part of their employee benefits package to attract and retain talent.

Understanding your leave entitlement helps both employers and employees stay compliant while promoting a healthier work-life balance.