Understanding your sick leave entitlements under the Employment Act 1955 is essential for every employee in Malaysia. The Act sets out minimum standards that apply to all workers earning RM2,000 and below per month, as well as to all manual labourers regardless of salary. For employees earning above RM2,000, the same provisions usually apply unless a more favourable contract exists. This article explains the legal framework, eligibility conditions, duration of paid sick leave, medical certification requirements, and what happens when disputes arise. It also connects sick leave to broader social protections such as SOCSO and the Employees Provident Fund.

The Employment Act 1955 (Akta Kerja 1955) is the primary legislation governing employment conditions in Peninsular Malaysia and the Federal Territory of Labuan. Sabah and Sarawak have separate ordinances, but the principles are largely similar. The Act is enforced by the Department of Labour (Jabatan Tenaga Kerja) under the Ministry of Human Resources. This article focuses on the Act as amended up to 2025, including changes introduced by the Employment (Amendment) Act 2022 which took effect on 1 January 2023.

Who Is Covered by the Employment Act Sick Leave Provisions

The sick leave provisions in the Employment Act apply to two categories of employees. First, any employee whose monthly wages do not exceed RM2,000. Second, all employees engaged in manual labour regardless of wage level. Manual labour includes construction workers, factory operators, plantation workers, delivery riders who are hired as employees (not independent contractors), and similar roles. Employees earning more than RM2,000 who are not manual labourers are still covered if their contract of service expressly adopts the Act, but in practice most employers extend the same minimum benefits.

The Act does not cover domestic servants such as maids, gardeners, or drivers unless specifically stated in their contract. It also excludes self-employed individuals, freelancers, and independent contractors. For these groups, sick leave is a matter of private agreement or insurance. If you are unsure about your status, check your employment contract or consult the Jabatan Tenaga Kerja. The complete guide to navigating daily life in Malaysia includes a section on employee rights that can help you verify your coverage.

Entitlement to Paid Sick Leave: Duration and Conditions

Under Section 60F of the Employment Act, an employee who has been employed for at least one month is entitled to paid sick leave. The amount of paid sick leave depends on the length of continuous service with the same employer.

  • Less than 2 years of service: 14 days per calendar year.
  • 2 years to less than 5 years: 18 days per calendar year.
  • 5 years or more: 22 days per calendar year.

These are the minimum statutory entitlements. Many employers offer more generous sick leave as part of their benefits package. For example, companies in the banking and technology sectors often provide 20 to 30 days of paid sick leave regardless of tenure. However, the Act does not require employers to provide more than the statutory minimum.

It is important to note that sick leave is calculated on a calendar year basis, not from the date of hire. If you join in the middle of the year, your entitlement is pro-rated based on the remaining months. For instance, if you start work on 1 July, you would be entitled to half of the annual sick leave days for that year (7 days if you have less than 2 years of service).

Medical Certification Requirement

To be eligible for paid sick leave, you must provide a medical certificate (MC) issued by a registered medical practitioner or dentist. The Act requires that the employee informs or attempts to inform the employer of the absence within 48 hours. If you fail to do so without a reasonable excuse, the employer may treat the absence as unpaid leave or as misconduct.

The medical certificate must state that you are unfit to work. It must be issued by a government hospital or clinic, or by a private clinic registered under the Private Healthcare Facilities and Services Act 1998. Some employers accept MCs from traditional medicine practitioners, but they are not legally obliged to do so. If you need to see a doctor, you can find affordable options at government and private clinics.

Hospitalisation Leave

If you are hospitalised, the sick leave entitlement increases. For employees with less than 2 years of service, hospitalisation leave is 60 days in a calendar year. For those with 2 to 5 years, it is 60 days. For those with 5 years or more, it is 60 days. In all cases, the total of ordinary sick leave and hospitalisation leave cannot exceed 60 days per year. For example, if you have 5 years of service and take 10 days of ordinary sick leave, you can still take up to 50 days of hospitalisation leave, but the combined total cannot exceed 60 days.

Hospitalisation leave requires a medical certificate from a registered medical practitioner confirming that the employee was admitted as an inpatient. Outpatient treatment does not qualify as hospitalisation leave even if it involves a day procedure.

Employer Obligations and Payment During Sick Leave

During paid sick leave, the employer must pay the employee their ordinary rate of pay. This includes basic salary, fixed allowances, and any contractual bonuses that are not dependent on attendance. However, the employer is not required to pay for overtime, shift allowances, or other variable payments that would only be earned if the employee had worked.

The payment must be made on the usual pay day. If the sick leave spans multiple pay periods, the employer must pay for the days worked and the sick days separately but within the same cycle. Failure to pay sick leave wages is an offence under the Employment Act and can result in a fine of up to RM10,000 per offence.

Employers are also required to maintain a record of sick leave taken by each employee. This record must be kept for at least 6 years and be available for inspection by the Director General of Labour. If an employer disputes the validity of a medical certificate, they may request a second opinion from a government medical officer. The cost of the second opinion is borne by the employer.

When Sick Leave Can Be Refused or Deducted

There are specific circumstances where an employer may refuse to grant paid sick leave or may deduct wages. The most common is when the employee fails to provide a valid medical certificate within 48 hours of the absence. Another is when the employee is absent without informing the employer, even if they later produce an MC. The employer may also refuse sick leave if the employee is on a period of notice of termination, unless the sick leave is due to a work-related injury or disease.

If an employee takes sick leave but is found to be working elsewhere or engaging in activities inconsistent with being unfit for work, the employer can treat the absence as misconduct and may take disciplinary action, including termination. However, the employer must have clear evidence and follow due process.

Employers cannot deduct wages for sick leave that is covered by the Act. Any deduction must be authorised by the employee in writing or permitted by the Act itself, such as for housing, amenities, or recovery of advances. Unauthorised deductions can be challenged at the Labour Court.

Interaction With SOCSO and Other Benefits

Paid sick leave under the Employment Act is separate from benefits provided by the Social Security Organisation (SOCSO or PERKESO). If you are absent due to a work-related injury or disease, you may be entitled to SOCSO's Temporary Disablement Benefit (TDB). The TDB is paid from the first day of absence and is calculated at 80% of your daily wage for up to 24 months. During this period, your employer is not required to pay your salary under the Employment Act, but you must claim from SOCSO.

For non-work-related illnesses, you rely on your employer's sick leave entitlement first. If you exhaust your statutory sick leave, you may apply for unpaid sick leave or annual leave. Some employees also have personal accident or hospitalisation insurance provided by the employer. You should check your benefits booklet or ask your HR department.

Contributions to SOCSO are mandatory for all employees earning RM5,000 and below per month, and for manual labourers regardless of salary. If you are covered, you can also claim SOCSO's medical benefits and rehabilitation services. For more details on SOCSO contributions and claims, see PERKESO contributions explained and how to claim PERKESO benefits.

Your sick leave entitlement does not affect your contributions to the Employees Provident Fund (KWSP). KWSP contributions continue to be deducted from your salary even when you are on paid sick leave, because sick leave pay is considered wages. However, if you are on unpaid sick leave, there are no contributions for that period. For more on KWSP rules, read KWSP withdrawal at age 55 and KWSP i-Saraan.

Common Disputes and How to Resolve Them

Disputes over sick leave often arise from misunderstandings about eligibility, certification, and payment. The most frequent complaints received by the Jabatan Tenaga Kerja include:

  • Employer refuses to accept a medical certificate from a private clinic.
  • Employer demands that the employee see a company-appointed doctor.
  • Employer deducts wages for sick leave even though a valid MC was provided.
  • Employer treats sick leave as annual leave without the employee's consent.
  • Employer terminates the employee for taking sick leave.

If you face any of these issues, the first step is to raise the matter with your employer in writing. Keep copies of all correspondence, medical certificates, and pay slips. If the issue is not resolved, you can file a complaint at the nearest Jabatan Tenaga Kerja (Labour Department). The department will attempt mediation. If mediation fails, the case may be referred to the Labour Court (Mahkamah Perusahaan) for adjudication.

Employees who are wrongfully dismissed for taking sick leave can claim reinstatement or compensation. The Labour Court can order the employer to pay back wages and compensation for loss of employment. In serious cases, the employer may be prosecuted and fined.

It is also worth noting that the Employment Act does not cover every situation. For example, if you are a contract worker with a fixed-term contract that ends while you are on sick leave, your entitlement ceases on the contract end date. Similarly, if you are on probation, you are still entitled to sick leave, but the employer may extend your probation period to account for the absence.

Practical Tips for Employees

To ensure you receive your full sick leave entitlements, follow these practical steps:

  1. Always obtain a medical certificate from a registered doctor or dentist. Keep the original for your records and submit a copy to your employer.
  2. Notify your employer as soon as possible, preferably within 24 hours, and confirm in writing if required by company policy.
  3. Know your company's sick leave policy. Some employers require you to call a specific HR hotline or submit an online form.
  4. Track your sick leave balance throughout the year. Many HR systems allow you to check online.
  5. If you are hospitalised, request a hospitalisation letter from the hospital to support your claim for hospitalisation leave.
  6. If you have a chronic condition that requires frequent medical visits, discuss with your employer whether flexible work arrangements or additional sick leave can be arranged.
  7. Keep a personal file of all medical certificates, pay slips, and any correspondence with your employer regarding sick leave.

If you are a low-income earner, you may also be eligible for other forms of government assistance. The Bantuan Sara Hidup (BSH) provides cash transfers to eligible households, and the Bantuan OKU supports persons with disabilities. These benefits can help cover expenses during extended illness.

Recent Amendments and 2025 Updates

The Employment (Amendment) Act 2022, which came into force on 1 January 2023, made several changes to sick leave provisions. The most significant change was the increase in hospitalisation leave from 60 days to 60 days (previously 60 days was the combined limit, but the amendment clarified that the 60 days is a combined limit of ordinary and hospitalisation leave). The amendment also introduced a requirement for employers to provide a medical certificate if the employee is absent for more than 2 consecutive days. Prior to the amendment, the requirement was only for absences of more than 2 days.

As of 2025, there are no further amendments to sick leave provisions. However, the Ministry of Human Resources has indicated that it is reviewing the Act to address gig economy workers and platform employees. If you are a gig worker, such as a delivery rider or e-hailing driver, you are not covered by the Employment Act. You should consider purchasing private health insurance or joining a union that offers group insurance.

For employees in Sabah and Sarawak, the Labour Ordinance (Sabah Cap. 67) and the Labour Ordinance (Sarawak Cap. 76) contain similar sick leave provisions. The main difference is that the wage threshold for coverage in Sabah is RM2,500 per month, and in Sarawak it is RM2,500 per month as well. Manual labourers are covered regardless of wage in both states. If you work in East Malaysia, check with the local Labour Department for specific rules.

Conclusion

Sick leave entitlements under the Employment Act 1955 provide a basic safety net for employees who are unable to work due to illness or injury. The law guarantees paid time off, requires medical certification, and sets limits on employer discretion. While the minimum entitlements are modest, they are enforceable through the Labour Department and the Labour Court. Employees should familiarise themselves with their rights, keep proper documentation, and seek advice if they face unfair treatment.

Beyond sick leave, employees in Malaysia have access to a broader social protection system including SOCSO, KWSP, and various government assistance programmes. Understanding how these interact with your employment rights can help you make informed decisions about your health and finances. For a broader overview of living and working in Malaysia, refer to the complete guide to navigating daily life in Malaysia.

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