Malaysia Employment Act 1955

The Malaysian Employment Act 1955 is an important document that governs the relationship between employers and employees. The Act sets basic regulations for:

• minimum wage
• employee working hours
• overtime pay
• leave entitlements
• employee termination
• hiring foreign employees

Under the Employment Act, employees may not be required to work more than 8 hours a day or 45 hours a week. Any work beyond these limits qualifies as overtime and must be compensated according to statutory overtime rates.

As of 1 January, 2023, the Employment Act has been amended to include the following changes:

• The minimum wage limit has been increased to RM4,000 instead of RM2,000.
•  Weekly working hours are limited to 45 hours.
• Maternity leave entitlement has been increased to 98 consecutive days.
• Married male employees who have been employed for at least 12 months are entitled to 7 consecutive days of paid paternity leave at their ordinary rate of pay.
• Hospitalisation leave entitlement of 60 days is in addition to the medical leave entitlement.
• New method of calculation for prorate salary.
• Pregnant employees can not be terminated unless on the ground of breach of contract, misconduct or closure of the employer’s business.