How annual leave works under the Employment Act 1955
Section 60E of Malaysia's Employment Act 1955 sets paid annual leave at 8 days for every 12 months of continuous service for an employee…
Section 60E of Malaysia's Employment Act 1955 sets paid annual leave at 8 days for every 12 months of continuous service for an employee employed for less than 2 years, 12 days for an employee employed for 2 years or more but less than 5 years, and 16 days for an employee employed for 5 years or more.
| Years of service | Annual leave (days/year) |
|---|---|
| Less than 2 years | 8 |
| 2 years to less than 5 years | 12 |
| 5 years or more | 16 |
The Act's proviso to section 60E(1) states that where an employee has not completed 12 months of continuous service in the year in which their contract terminates, their entitlement "shall be in direct proportion to the number of completed months of service", and that "any fraction of a day of annual leave so calculated which is less than one-half of a day shall be disregarded, and where the fraction of a day is one-half or more it shall be deemed to be one day". This calculator applies the same proportional method to a new hire's first, still-incomplete year of service.
The 2022 amendment: leave now applies regardless of salary
Before 1 September 2022, the Employment Act's general coverage (First Schedule) applied only up to a set monthly wage.
Before 1 September 2022, the Employment Act's general coverage (First Schedule) applied only up to a set monthly wage. The Employment (Amendment of First Schedule) Order 2022, effective 1 September 2022, added every person with a contract of service to the First Schedule. A new paragraph 1A then carves out employees earning more than RM4,000 a month from specific provisions only: certain overtime-pay subsections and section 60J (termination, lay-off and retirement benefits). Sections 60E (annual leave) and 60F (sick leave) are not on that exclusion list, so both entitlements apply to employees earning above RM4,000 a month as well.
Sick leave and hospitalisation leave
Section 60F sets paid sick leave, where hospitalisation is not necessary, at 14 days a year for under 2 years of service, 18 days for 2 to…
Section 60F sets paid sick leave, where hospitalisation is not necessary, at 14 days a year for under 2 years of service, 18 days for 2 to under 5 years, and 22 days for 5 years or more. Separately, up to 60 days a year is available in aggregate if hospitalisation is certified as necessary by a registered medical practitioner or medical officer, regardless of length of service.
| Years of service | Sick leave, no hospitalisation | If hospitalisation is necessary |
|---|---|---|
| Less than 2 years | 14 days | 60 days |
| 2 years to less than 5 years | 18 days | 60 days |
| 5 years or more | 22 days | 60 days |
Who this does not cover
The Act's First Schedule excludes domestic employees from sections 60E and 60F entirely, and sets separate provisions for certain seafarers under the Merchant Shipping Ordinance 1952. This calculator is for employees covered by the Act's general leave provisions.
FAQ
How many days of annual leave am I entitled to in Malaysia?
Under the Employment Act 1955 (section 60E), you are entitled to 8 days a year if you have been employed for less than 2 years, 12 days a year if you have been employed for 2 years or more but less than 5 years, and 16 days a year if you have been employed for 5 years or more.
Does my annual leave depend on how much I earn?
No, not since 1 September 2022. Before that date, only employees earning up to a set monthly wage were covered by the Employment Act's leave provisions.
The Employment (Amendment of First Schedule) Order 2022 extended coverage of the Act's leave sections to every employee with a contract of service, regardless of wage. Employees earning more than RM4,000 a month are only excluded from certain overtime and termination/retirement-benefit provisions, not from annual leave (section 60E) or sick leave (section 60F).
How is annual leave calculated if I have not completed a full year?
The Act's own wording covers the year in which your contract of service terminates: your entitlement for that year is 'in direct proportion to the number of completed months of service'. A fraction of a day that works out to less than one half is disregarded, and a fraction of one half or more is treated as a full day. Employers commonly apply the same proportional method to a new hire's first partial year, which is what this calculator does.
What happens to annual leave if my contract ends partway through the year?
Section 60E requires your employer to pay out annual leave accrued up to termination in direct proportion to your completed months of service in that year, using the same half-day rounding rule.
How much paid sick leave do I get?
Section 60F sets paid sick leave (where no hospitalisation is needed) at 14 days a year if you have been employed for less than 2 years, 18 days a year for 2 years or more but less than 5 years, and 22 days a year for 5 years or more.
What if I need hospitalisation?
Section 60F provides up to 60 days a year of paid sick leave in aggregate if hospitalisation is certified as necessary by a registered medical practitioner or medical officer, regardless of your length of service.
Do domestic employees or seafarers get the same entitlement?
No. The Employment Act's First Schedule excludes domestic employees from sections 60E (annual leave) and 60F (sick leave) entirely, and sets separate rules for certain seafarers under the Merchant Shipping Ordinance. This calculator is for employees covered by the general provisions of the Act.
Is this calculator legal advice?
No, this tool applies the Employment Act 1955 minimums to the details you enter, for general information only. It is not a substitute for your employment contract, your payslip, or advice from the Ministry of Human Resources (Jabatan Tenaga Kerja).
Sources
2 official sources
- Employment Act 1955 (Act 265), consolidated text, Ministry of Human Resources: section 60E (annual leave, quoted above), section 60F (sick leave), and the First Schedule paragraphs 1, 1A and item 5 (RM4,000 coverage threshold and domestic-employee exclusion).
- First Schedule amendment: Employment (Amendment of First Schedule) Order 2022, P.U.(A) 262/2022, in force 1 September 2022 (listed in the Act's own amendment history, reproduced in the consolidated text above).
Figures checked against the consolidated Employment Act 1955 text published by the Ministry of Human Resources. Last verified: September 2026.