Articles
Learn how to start and properly operate a business in Malaysia. These articles are also useful for new business owners.
Customer Testimonials
Hear what our valuable clients have to say about their experience with Bossboleh.
BB e-Learning School
Education should be accessible to all. This platform breaks barriers with curated video lessons at your fingertips.
Malaysia Sick & Medical Leave
Paid Sick Leave in Malaysia: Legal Rights & Key Insights
Paid sick leave is more than just a perk in Malaysia. It’s a legally protected right under Section 60F of the Employment Act 1955. This crucial legislation ensures financial security for employees who are medically unfit to work. It applies mainly to non-managerial employees in Peninsular Malaysia, Sabah and Sarawak especially those earning below RM2,000 per month (as of 2023).
In this article, we’ll break down your entitlements, explain who qualifies and answer one of the most common questions should sick leave be prorated?
Statutory Sick Leave Entitlement
Under Section 60F(1) of the Employment Act, employees are entitled to a fixed number of paid sick leave days per year based on their length of service with the same employer:
- Less than 2 years of service: 14 days per year
- Between 2 to less than 5 years of service: 18 days per year
- 5 years or more of service: 22 days per year
In addition, Section 60F(1)(a) provides up to 60 days of paid hospitalisation leave annually, separate from ordinary sick leave. The combined total of ordinary and hospitalisation leave cannot exceed 60 days, unless a certified medical practitioner or dentist recommends a longer recovery period. These are the minimum statutory requirements employers may offer more generous benefits through company policies.
Conditions for Paid Sick Leave
To be entitled to paid sick leave, employees must comply with Section 60F(2):
- Medical Certificate (MC): A valid MC issued by a registered medical practitioner or dentist is required to certify the inability to work due to illness.
- Timely Notification: The employer must be informed within 48 hours of the sick leave. Failure to notify without a valid reason may result in the leave being treated as unexcused absence.
- Absence Limit: Employees who are absent without permission or valid reason for more than 10% of their total working days in a year may lose their sick leave entitlement for that year.
During paid sick leave, employers are required to pay full wages and are not allowed to penalize employees for using this entitlement. However, if the employer doubts the legitimacy of the sick leave, they may request the employee to be examined by a company-appointed doctor.
Is Sick Leave Prorated?
A common question is whether sick leave should be prorated if an employee works for less than a year (e.g., only 3 months). Under Section 60F of the Employment Act, the answer is no. The law does not require prorated sick leave, unlike annual leave (which is governed by Section 60E and must be prorated).
Sick leave entitlements are based on years of service, not the number of months worked. For example, an employee who joins on 1 January 2025 and works until 31 March 2025 (only 3 months) is still entitled to the full 14 days of paid sick leave if they fall under the “less than 2 years” category. This ensures health coverage even for new hires. This also applies to employees under probation, unless specifically restricted by their employment contract.
Balancing Legal Requirements & Practical Policies
Although Section 60F of the Employment Act sets a clear baseline, several practical considerations remain:
- Company Policies: Employers may offer better benefits than those required by law. If an employment contract includes prorated sick leave, it is valid as long as it does not fall below the statutory minimum.
- High-Income Employees: Those earning above the legal salary threshold or in managerial roles are not covered by the Employment Act. Their sick leave entitlements are governed by individual contracts.
- Abuse Prevention: Employers may investigate frequent sick leave usage to prevent abuse and protect productivity.
In recent years, such as during the COVID-19 pandemic, some companies voluntarily increased sick leave or provided isolation allowances, highlighting growing awareness of employee wellbeing.
According to Section 60F of the Employment Act 1955, paid sick leave entitlements are tied to years of service: 14 days (less than 2 years), 18 days (2– less than 5 years), and 22 days (≥5 years), with an additional 60 days for hospitalisation if needed. Sick leave is not prorated, meaning even employees who work only 3 months are still entitled to the full 14 days if eligible.
Both employees and employers should carefully review employment contracts and company policies and consult with the Labour Department (Jabatan Tenaga Kerja) if needed. This system not only safeguards employee health but also reflects the Malaysian legal framework’s commitment to worker protection.
💡 Want to ensure your company stays compliant with Malaysia’s latest employment laws?
Join FREE webinar tailored for Sdn Bhd employers! Discover how to manage paid sick leave, hospitalisation entitlements, and other key labour law updates with confidence.
For more details, feel free to WhatsApp us!
📲 WhatsApp :018-7678055