Malaysia Employment Guide

Malaysia is in Southeast Asia, spanning the Malay Peninsula and northern Kalimantan, with a superior location as a key Southeast Asian economic and transportation hub. It has ~33 million people from diverse groups, including Malays, Chinese and Indians. Its economic pillars cover manufacturing, electronics, oil and gas, palm oil, tourism and services, with Kuala Lumpur (the capital) as the political and commercial center. Malaysia’s labor laws are mainly regulated by the 1955 Labour Ordinance. It stipulates a 48-hour standard workweek, written contracts for employment relations, and requires employers to provide minimum wages, overtime compensation and statutory benefits. Dismissals need valid reasons and legal procedures, and employees are entitled to paid annual and sick leave.

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Currency

Malaysian Ringgit (MYR)

Capital

Kuala Lumpur

Official language

Malay (Bahasa Malaysia)

Salary Cycle

Monthly

Our Employment Guide in Malaysia

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Paid Time Off (PTO) Entitlements

Both full-time and part-time employees in Malaysia are entitled to Paid Time Off (PTO), with the number of days determined by their length of service. Employees can utilize their PTO once they have accumulated sufficient days.

Public Holiday Framework

Malaysia recognizes 5 national public holidays. However, under Section 60D of the Employment Act and Section 8 of the Holidays Act, every employee is entitled to 11 paid statutory public holidays annually. This allocation comprises 5 mandatory holidays and 6 optional holidays, which employers can select from the official government list. Additionally, numerous regional and unofficial holidays may be granted at the employer's discretion. For detailed information on 2023 regional holidays, consult the official Malaysian government portal.

Mandatory Public Holidays

Labour Day: May 1
Yang di-Pertuan Agong's Birthday: June 5
Independence Day: August 31
Malaysia Day: September 16
State Ruler's Birthday (varies by state)

Practical Implications for Employers

Effectively managing this holiday structure requires careful planning. For instance, SailGlobal's Kuala Lumpur office implements a transparent holiday selection process each November, allowing for smooth operational continuity. Companies must ensure compliance while balancing business needs, as non-compliance can lead to legal penalties and employee dissatisfaction.

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