{"id":2560,"date":"2026-03-09T03:56:12","date_gmt":"2026-03-09T03:56:12","guid":{"rendered":"https:\/\/www.info-tech.com.my\/blog\/?p=2560"},"modified":"2026-03-17T10:16:10","modified_gmt":"2026-03-17T10:16:10","slug":"labour-law-malaysia","status":"publish","type":"post","link":"https:\/\/www.info-tech.com.my\/blog\/labour-law-malaysia\/","title":{"rendered":"Understanding Key Rules Of Labour Law in Malaysia"},"content":{"rendered":"\r\n<p><span data-contrast=\"auto\">Understanding\u00a0Labour\u00a0Law in Malaysia is crucial for both employers and employees.\u00a0Knowing the basic legal rules around it helps prevent disputes and penalties\u00a0in the workplace.\u00a0With recent amendments\u00a0to\u00a0the Employment Act\u00a0of\u00a01955, compliance has become even more important for businesses of all sizes, especially\u00a0for\u00a0SMEs.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">By the end of this guide, you will\u00a0get\u00a0a clear understanding of\u00a0how laws regulate\u00a0important areas\u00a0such as working hours, wages, overtime, leave entitlements, employment contracts, and termination procedures.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2 class=\"wp-block-heading\"><b><span data-contrast=\"none\">What is\u00a0Labour\u00a0Law in Malaysia<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:360,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\r\n<p><span data-contrast=\"auto\">Malaysian\u00a0Labour\u00a0Law is the set of\u00a0rules\u00a0and regulations that\u00a0manages the relationship between the employer and the employee.\u00a0The legal framework for\u00a0entities such as\u00a0working hours, wages, leave entitlements, employment contracts, and termination is\u00a0set\u00a0through\u00a0this law.\u00a0Its main purpose is to<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li><span data-contrast=\"auto\">Protect employee rights<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span style=\"font-size: 1.0625rem\" data-contrast=\"auto\">Ensure fair treatment in the workplace<\/span><span style=\"font-size: 1.0625rem\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559685&quot;:720,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><span data-contrast=\"auto\">Regulate employer responsibilities<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559685&quot;:720,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><span data-contrast=\"auto\">Maintain industrial harmony<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">Regardless of the salary level, the\u00a0Labour\u00a0Law of Malaysia is now applicable to most of the\u00a0employees, although certain provision still\u00a0applies\u00a0to some\u00a0employees based on job scope and wage threshold.\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559685&quot;:0,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"aligncenter wp-image-2564 \" src=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/03\/Labour-Law-In-Malaysia-1024x785.png\" alt=\"Labour Law In Malaysia\" width=\"633\" height=\"485\" srcset=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/03\/Labour-Law-In-Malaysia-1024x785.png 1024w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/03\/Labour-Law-In-Malaysia-300x230.png 300w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/03\/Labour-Law-In-Malaysia-768x589.png 768w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/03\/Labour-Law-In-Malaysia.png 1201w\" sizes=\"auto, (max-width: 633px) 100vw, 633px\" \/><\/p>\r\n<h2><b><span data-contrast=\"none\">Employment Contracts Under Malaysian\u00a0Labour\u00a0Law<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\r\n<p><span data-contrast=\"auto\">An Employment Contract is an agreement between the employer and the employee that legally binds them by\u00a0outlining the terms and conditions of employment. Under the\u00a0labour\u00a0law of Malaysia, employment contracts should\u00a0comply with\u00a0the\u00a0<\/span><a href=\"https:\/\/jtksm.mohr.gov.my\/sites\/default\/files\/2023-11\/Akta%20Kerja%201955%20%28Akta%20265%29_0.pdf\"><b><span data-contrast=\"none\">Employment Act of 1955<\/span><\/b><\/a><span data-contrast=\"auto\">\u00a0and other related legislations.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">An employment contract must include:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li><span data-contrast=\"auto\">Job title<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Salary and payment terms<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Working hours and rest days<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Overtime rates<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Leave entitlements (annual, sick, public holidays, etc.)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Probation period (if applicable)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559685&quot;:720,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><span data-contrast=\"auto\">Notice period<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559685&quot;:720,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><span data-contrast=\"auto\">Benefits and allowances<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h2><strong>\u00a0Written vs Verbal Contracts\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">Employment contracts in Malaysia can be in two forms:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Written<\/span><\/b><span data-contrast=\"auto\">\u00a0\u2013 A formal document signed by both parties.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"2\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><b><span data-contrast=\"auto\">Verbal<\/span><\/b><span data-contrast=\"auto\">\u00a0\u2013 An agreement\u00a0that is\u00a0orally\u00a0made.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">Tip:\u00a0For\u00a0the\u00a0contracts lasting\u00a0<\/span><span data-contrast=\"auto\">more than one month, it is legally safer to have a written contract clearly\u00a0<\/span><span data-contrast=\"auto\">stating\u00a0the employment terms,\u00a0in order to\u00a0avoid\u00a0any sort of\u00a0issues.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">A well-drafted employment contract helps:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li><span data-contrast=\"auto\">Prevent misunderstanding<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Reduce legal risk<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Ensure compliance with Malaysian Labour Law\u00a0<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Create transparency and workplace professionalism<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h2><strong>\u00a0Working Hours and Overtime Rules\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">Rules for working hours and overtime can protect employees from working excessively, while ensuring\u00a0they are appropriately compensated for their extra time at work.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2><b><span data-contrast=\"none\">Standard Working Hours in Malaysia<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\r\n<p><span data-contrast=\"auto\">According to the Employment Act, employees<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li><span data-contrast=\"auto\">Should <\/span><b><span data-contrast=\"auto\">not\u00a0<\/span><\/b><span data-contrast=\"auto\">work\u00a0<\/span><b><span data-contrast=\"auto\">more than 8 hours per day<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><b><span data-contrast=\"auto\">Not <\/span><\/b><span data-contrast=\"auto\">work\u00a0<\/span><b><span data-contrast=\"auto\">more than\u00a045 hours\u00a0per week<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Must be given at least <\/span><b><span data-contrast=\"auto\">one rest day per week<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><b><span data-contrast=\"auto\">Cannot <\/span><\/b><span data-contrast=\"auto\">work more than\u00a0<\/span><b><span data-contrast=\"auto\">5 consecutive hours without a break<\/span><\/b><span data-contrast=\"auto\">\u00a0(minimum 30 minutes break\u00a0enititled)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h2><b><span data-contrast=\"none\">Overtime Rules and Calculation<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\r\n<p><span data-contrast=\"auto\">Overtime (OT) is applicable when an employee works beyond normal work hours.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><b><span data-contrast=\"none\">Rules\u00a0for OT<\/span><\/b><span data-contrast=\"none\">:<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li><span data-contrast=\"auto\">Overtime must be paid at\u00a0<\/span><b><span data-contrast=\"auto\">not less than 1.5 times<\/span><\/b><span data-contrast=\"auto\">\u00a0the normal hourly rate<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Working\u00a0on a\u00a0<\/span><b><span data-contrast=\"auto\">rest day<\/span><\/b><span data-contrast=\"auto\">\u00a0should\u00a0be paid at a higher rate (depending on hours worked)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Working\u00a0on a\u00a0<\/span><b><span data-contrast=\"auto\">public holiday<\/span><\/b><span data-contrast=\"auto\">\u00a0should\u00a0be paid\u00a0<\/span><b><span data-contrast=\"auto\">2 times or more<\/span><\/b><span data-contrast=\"auto\">\u00a0than the\u00a0normal\u00a0pay<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Total overtime should not exceed\u00a0a total of\u00a0<\/span><b><span data-contrast=\"auto\">104 hours\u00a0per month<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">Employers cannot simply offer \u201ctime off\u201d instead of overtime pay unless it\u00a0complies with\u00a0legal requirements.<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<p><b><span data-contrast=\"auto\">To calculate overtime<\/span><\/b><span data-contrast=\"auto\">:<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<ol>\r\n<li><span data-contrast=\"auto\">Determine\u00a0the employee\u2019s\u00a0<\/span><b><span data-contrast=\"auto\">hourly rate<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Multiply it by the overtime rate (e.g., 1.5x)<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">Multiply by the hours of overtime worked<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ol>\r\n<p><b><span data-contrast=\"none\">Example<\/span><\/b><span data-contrast=\"none\">:\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">Consider<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li><span data-contrast=\"auto\">Monthly salary:\u00a0<\/span><b><span data-contrast=\"auto\">RM3,000<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span data-contrast=\"auto\">OT hours worked: <\/span><b><span data-contrast=\"auto\">2 hours<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li><span style=\"font-size: 1.0625rem\" data-contrast=\"auto\">OT rate (normal day):\u00a0<\/span><b style=\"font-size: 1.0625rem\"><span data-contrast=\"auto\">1.5x<\/span><\/b><span style=\"font-size: 1.0625rem\" data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">Steps\u00a0to calculate overtime pay:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ol>\r\n<li data-leveltext=\"%1.\" data-font=\"Aptos Display\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span style=\"text-decoration: underline\">Find daily pay:\u00a0<\/span><br \/><span data-contrast=\"auto\">RM3,000 \u00f7 26 = RM115.38<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li data-leveltext=\"%1.\" data-font=\"Aptos Display\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span style=\"text-decoration: underline\">Find hourly pay:<\/span>\u00a0<br \/><span data-contrast=\"auto\">RM115.38 \u00f7 8 = RM14.42 per hour<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<li data-leveltext=\"%1.\" data-font=\"Aptos Display\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span style=\"text-decoration: underline\">Find OT hourly pay (1.5x):\u00a0<\/span><br \/><span data-contrast=\"auto\">RM14.42 \u00d7 1.5 = RM21.63 per OT hour<\/span><\/li>\r\n<li data-leveltext=\"%1.\" data-font=\"Aptos Display\" data-listid=\"8\" data-list-defn-props=\"{&quot;335552541&quot;:0,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769242&quot;:[65533,0],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;%1.&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span style=\"text-decoration: underline\">Calculate total OT\u00a0(2 hours):\u00a0<\/span><br \/><span data-contrast=\"auto\">RM21.63 \u00d7 2 = RM43.26<\/span><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/li>\r\n<\/ol>\r\n<p><span data-contrast=\"auto\">\u2705\u00a0<\/span><b><span data-contrast=\"auto\">OT Pay = RM43.26<\/span><\/b><span data-ccp-props=\"{&quot;134233117&quot;:false,&quot;134233118&quot;:false,&quot;335559738&quot;:240,&quot;335559739&quot;:240}\">\u00a0<\/span><\/p>\r\n<h2><b><span data-contrast=\"none\">Minimum Wage Requirements in Malaysia<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\r\n<p><span data-contrast=\"auto\">The minimum wage in Malaysia refers to the lowest salary an employee is entitled to be paid by the employer under the minimum wages order. The current minimum wage of 2026 is <\/span><b><span data-contrast=\"auto\">RM1,700 per month<\/span><\/b><span data-contrast=\"auto\">\u00a0effective 1 February 2025 for employers with more than or equal to 5 employees, and 1 August 2025\u00a0for all employees.\u00a0Most\u00a0employees,\u00a0including foreign employees under a contract of service\u00a0as a full-time,\u00a0part-time\u00a0or hourly worker, are covered under this.\u00a0But this\u00a0generally does\u00a0not apply to domestic workers of Malaysia.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">Non-compliance may lead to fines, penalties, or even imprisonment, for repeated\u00a0breaches. This minimum wage rule\u00a0essentially\u00a0protects\u00a0the\u00a0welfare\u00a0of the employee and promotes\u00a0fair pay across sectors.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2><b><span data-contrast=\"none\">Leave Entitlements Under\u00a0Labour\u00a0Law Malaysia<\/span><\/b><span data-contrast=\"none\">\u00a0<\/span><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\r\n<p><span data-contrast=\"auto\">Various leaves entitled under the\u00a0labour\u00a0law\u00a0ensure\u00a0proper rest, medical\u00a0well-being\u00a0and family support of the employee.\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ol>\r\n<li><b><\/b><a href=\"https:\/\/www.info-tech.com.my\/blog\/annual-leave-malaysia-rules-forecasts\/\"><b><span data-contrast=\"none\">Annual Leave<\/span><\/b><\/a><span data-contrast=\"auto\">: depends on the employee\u2019s length of service- less\u00a0than 2 years: minimum 8 days per year;\u00a02 to 5 years: minimum\u00a012 days\u00a0per year; more than 5 years: minimum\u00a016 days\u00a0per year. Unused leave may be carried forward depending on\u00a0the\u00a0company policy.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<li><b><span data-contrast=\"auto\"> Sick Leave<\/span><\/b><span data-contrast=\"auto\">:service years less than 2 years:14 days;2 to 5 years:18 days,\u00a0more than 5 years:\u00a022 days<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<li><b><\/b><a href=\"https:\/\/www.info-tech.com.my\/blog\/hospitalisation-leave-malaysia\/\"><b><span data-contrast=\"none\">HospitalisationLeave<\/span><\/b><\/a><span data-contrast=\"auto\">:\u00a0<\/span><span data-contrast=\"auto\">60 days\u00a0of paid leave per year,\u00a0apart\u00a0from normal sick leave.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<li><b><\/b><a href=\"https:\/\/www.info-tech.com.my\/blog\/maternity-and-paternity-leave-in-malaysia\/\"><b><span data-contrast=\"none\">Maternity and Paternity Leave<\/span><\/b><\/a><span data-contrast=\"auto\">: <\/span><b><\/b><span data-contrast=\"auto\">98 consecutive days of paid maternity leave (subject to eligibility conditions).<\/span><span data-ccp-props=\"{}\"> While <\/span><span data-contrast=\"auto\">7 consecutive days of paid paternity leave (for up to 5 births).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<li><b><\/b><a href=\"https:\/\/www.info-tech.com.my\/blog\/malaysia-public-holidays-2026\/\"><b><span data-contrast=\"none\">Public Holidays<\/span><\/b><\/a><span data-contrast=\"auto\">: <\/span><span data-contrast=\"auto\">11 paid public holidays per year<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ol>\r\n<h2><b><span data-contrast=\"none\">Employee Benefits and Social Protection<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\r\n<h3><b><span data-contrast=\"none\">Employees Provident Fund<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\r\n<p><a href=\"https:\/\/www.kwsp.gov.my\/en\/\"><span data-contrast=\"none\">EPF (KWSP)<\/span><\/a><span data-contrast=\"auto\">\u00a0is\u00a0a mandatory\u00a0retirement savings scheme\u00a0where both employers and employees must contribute\u00a0on a monthly basis. These contributions are\u00a0based on the employee\u2019s salary. EPF provides\u00a0long-term financial security.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h3><span data-ccp-props=\"{}\">\u00a0<\/span><b><span data-contrast=\"none\">Social Security\u00a0Organisation\u00a0(SOCSO \/ PERKESO)<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\r\n<p><a href=\"https:\/\/www.malaysia.gov.my\/en\/personas\/young-workers\/hak-dan-manfaat-pekerja\/socso-contribution-as-employees-rights\"><span data-contrast=\"none\">SOCSO<\/span><\/a><span data-contrast=\"auto\">\u00a0provides protection for injuries and disabilities that are work-related or non-work related.\u00a0It covers instances such as workplace accidents,\u00a0diseases,\u00a0and non-work-related\u00a0disability.\u00a0Depending on the\u00a0the\u00a0scheme, both employers and\u00a0employees\u00a0may contribute.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h3><span data-ccp-props=\"{}\">\u00a0<\/span><b><span data-contrast=\"none\">Employment Insurance System (EIS)<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h3>\r\n<p><a href=\"https:\/\/www.malaysia.gov.my\/en\/personas\/job-seekers\/mendapatkan-bantuan-sebagai-pencari-kerja\/employment-insurance-scheme-eis-assistance-under-perkeso\"><span data-contrast=\"none\">EIS<\/span><\/a><span data-contrast=\"auto\">\u00a0gives\u00a0temporary\u00a0assistance\u00a0to employees who\u00a0have\u00a0lost their jobs.\u00a0It involves financial support for a certain period,\u00a0assistance\u00a0in job search, and training\u00a0programs.\u00a0Contribution to EIS must be done by both:\u00a0employers and employees.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2><span data-ccp-props=\"{}\">\u00a0<\/span><b><span data-contrast=\"none\">Employer Responsibilities<\/span><\/b><span data-ccp-props=\"{&quot;134245418&quot;:true,&quot;134245529&quot;:true,&quot;335559738&quot;:160,&quot;335559739&quot;:80}\">\u00a0<\/span><\/h2>\r\n<p><span data-contrast=\"auto\">Employers must legally ensure fair treatment of employees and proper compliance with statutory requirements of the\u00a0Malaysian\u00a0labour\u00a0law.\u00a0Below\u00a0is\u00a0the list of key responsibilities of an employer.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ol>\r\n<li><b><span data-contrast=\"auto\">Provide a Lawful Employment Contract<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<li><b><span data-contrast=\"auto\">Pay Wages on Time<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<li><b><span data-contrast=\"auto\">Comply with Working Hours and Leave Rules<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<li><b><span data-contrast=\"auto\">Make Statutory Contributions<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<li><b><span data-contrast=\"auto\">Ensure Lawful Termination<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ol>\r\n<h2><strong>\u00a0To Wrap Up\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">It is a legal responsibility of an employer to ensure compliance with statutory requirements from minimum wage and overtime rules to leave entitlements\u00a0to\u00a0contributions like EPF, SOCSO, and EIS. However, manually calculating overtime, managing leave\u00a0balances\u00a0and\u00a0working hours, and ensuring\u00a0timely\u00a0payments\u00a0can be\u00a0redundant and complex. Even a small error in calculation can result in disputes, penalties, and audits.\u00a0Using\u00a0a\u00a0trustworthy\u00a0and safe\u00a0<\/span><span data-contrast=\"none\"><a href=\"https:\/\/www.info-tech.com.my\/hrms-software\">HRMS<\/a> software<\/span><span data-contrast=\"auto\">\u00a0to automate\u00a0these tasks\u00a0can be\u00a0a great solution.\u00a0<\/span><\/p>\r\n<p><a href=\"https:\/\/www.info-tech.com.my\/contact-us\"><span data-contrast=\"none\">Contact Us<\/span><\/a><span data-contrast=\"auto\">\u00a0to\u00a0know\u00a0about our service!<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2 class=\"wp-block-heading\"><strong>Labour Law Malaysia<\/strong> <strong>Frequently Asked Questions<\/strong><\/h2>\r\n\r\n<div class=\"container\">\r\n<div class=\"mi-faq\">\r\n<div id=\"accordionExample\" class=\"accordion\">\r\n<div class=\"card\">\r\n<div id=\"headingOne\" class=\"card-head\">\r\n<div class=\"acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapseOne\" aria-expanded=\"true\" aria-controls=\"collapseOne\">\r\n<h4 class=\"Positionheader\">Is salary calculated 26 days or 30 days in Malaysia?<\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapseOne\" class=\"collapse show\" aria-labelledby=\"headingOne\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p>In Malaysia, monthly salary is generally considered fixed (not based on 26 or 30 days), but for overtime calculations, employers commonly use the 26-day formula to determine the daily rate.<\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"card\">\r\n<div id=\"headingtwo\" class=\"card-head\">\r\n<div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsetwo\" aria-expanded=\"false\" aria-controls=\"collapsetwo\">\r\n<h4 class=\"Positionheader\">What is the notice period for resignation in Malaysia?<\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapsetwo\" class=\"collapse\" aria-labelledby=\"headingtwo\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p>The minimum resignation notice period under the Malaysian Employment Act of 1955 is 4 weeks (less than 2 years of service), 6 weeks (2\u20135 years), and 8 weeks (more than 5 years). However, the employment contract may specify a longer notice period, which will apply if agreed by the employer and the employee.<\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"card\">\r\n<div id=\"headingthree\" class=\"card-head\">\r\n<div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsethree\" aria-expanded=\"false\" aria-controls=\"collapsethree\">\r\n<h4 class=\"Positionheader\">Can an employee work more than 12 hours a day in Malaysia?<\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapsethree\" class=\"collapse\" aria-labelledby=\"headingthree\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p>Under Malaysian labour law, employees generally should not work more than 12 hours in a day, including overtime, except in specific situations such as emergencies. Employers must still comply with overtime limits and payment requirements.<\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"card\">\r\n<div id=\"headingfour\" class=\"card-head\">\r\n<div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsefour\" aria-expanded=\"false\" aria-controls=\"collapsefour\">\r\n<h4 class=\"Positionheader\">What is the overtime limit in Malaysia?<\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapsefour\" class=\"collapse\" aria-labelledby=\"headingfour\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p>The general overtime limit in Malaysia under the Employment Act is 104 hours per month.<\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n\r\n<script type=\"application\/ld+json\">\r\n{\r\n  \"@context\": \"https:\/\/schema.org\",\r\n  \"@type\": \"FAQPage\",\r\n  \"mainEntity\": [{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"Is salary calculated 26 days or 30 days in Malaysia?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"In Malaysia, monthly salary is generally considered fixed (not based on 26 or 30 days), but for overtime calculations, employers commonly use the 26-day formula to determine the daily rate.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"What is the notice period for resignation in Malaysia?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"The minimum resignation notice period under the Malaysian Employment Act of 1955 is 4 weeks (less than 2 years of service), 6 weeks (2\u20135 years), and 8 weeks (more than 5 years). However, the employment contract may specify a longer notice period, which will apply if agreed by the employer and the employee.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"Can an employee work more than 12 hours a day in Malaysia?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"Under Malaysian labour law, employees generally should not work more than 12 hours in a day, including overtime, except in specific situations such as emergencies. Employers must still comply with overtime limits and payment requirements.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"What is the overtime limit in Malaysia?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"The general overtime limit in Malaysia under the Employment Act is 104 hours per month.\"\r\n    }\r\n  }]\r\n}\r\n<\/script>","protected":false},"excerpt":{"rendered":"<p>Understanding\u00a0Labour\u00a0Law in Malaysia is crucial for both employers and employees.\u00a0Knowing the basic legal[&#8230;]<\/p>\n","protected":false},"author":14,"featured_media":2563,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[105],"tags":[299,300],"class_list":["post-2560","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","tag-labour-law","tag-labour-law-malaysia"],"yoast_head":"<!-- This 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