{"id":3854,"date":"2026-08-14T06:59:40","date_gmt":"2026-08-14T06:59:40","guid":{"rendered":"https:\/\/www.info-tech.com.my\/blog\/?p=3854"},"modified":"2026-08-14T10:25:21","modified_gmt":"2026-08-14T10:25:21","slug":"employment-act-1955-malaysia","status":"publish","type":"post","link":"https:\/\/www.info-tech.com.my\/blog\/employment-act-1955-malaysia\/","title":{"rendered":"Employment Act 1955: A Complete Guide"},"content":{"rendered":"<div class=\"toc-card mt-3\">\r\n<div class=\"toc-header\">\r\n<div class=\"icon-box\"><img decoding=\"async\" src=\"https:\/\/www.info-tech.com.sg\/blog\/wp-content\/uploads\/2026\/04\/tool-icon.png\" \/><\/div>\r\n<h2 class=\"wp-block-heading\">In this article<\/h2>\r\n<\/div>\r\n<ul class=\"toc-list\">\r\n<li><a href=\"#section1\">1. What is the Employment Act 1955?<\/a><\/li>\r\n<li><a href=\"#section2\">2. Who Is Covered Under the Employment Act 1955?<\/a><\/li>\r\n<li><a href=\"#section3\">3. What Leave Entitlements Do Employees Receive Under the Employment Act 1955?<\/a><\/li>\r\n<li><a href=\"#section4\">4. How Do Working Hours, Overtime and Flexible Work Arrangements Work?<\/a><\/li>\r\n<li><a href=\"#section5\">5. What Employment Compliance Updates Should Employers Know in 2026?<\/a><\/li>\r\n<li><a href=\"#section6\">6. How Can Employers Stay Compliant with the Employment Act 1955?<\/a><\/li>\r\n<li><a href=\"#section7\">7. Employment Act 1955 FAQs<\/a><\/li>\r\n<\/ul>\r\n<\/div>\r\n<p>The <a href=\"https:\/\/jtksm.mohr.gov.my\/en\/borang\/employment-act-1955\"><strong>Employment Act 1955<\/strong><\/a> sets out the basic rules for employees and employers to follow at workplaces in Malaysia. It covers common workplace matters such as salary, working hours, leave, overtime and termination. The Act applies mainly to Peninsular Malaysia and Labuan. Sabah and Sarawak have their own labour laws.<\/p>\r\n<h2><strong>What is the Employment Act 1955?<\/strong><\/h2>\r\n<section id=\"section1\">Think of the Employment Act as the basic rulebook for employment. It explains what employees should receive and what employers need to provide at workplaces for the betterment and well-being of the employees. This includes things such as pay, leave, working hours, rest days and certain workplace protections.<\/section>\r\n<p>Some of the biggest changes took effect in 2023, including shorter weekly working hours, longer maternity leave and wider coverage for employees.<\/p>\r\n<section>\r\n<pre><strong>Read also: <\/strong><a href=\"https:\/\/www.info-tech.com.my\/blog\/employment-act-vs-employment-rights-act\/\"><strong>Employment Act vs Employment Rights Act: Differences Explained<\/strong><\/a><\/pre>\r\n<h2><strong>Who Is Covered Under the Employment Act 1955?<\/strong><\/h2>\r\n<section id=\"section2\">The Employment Act now covers employees <strong>regardless of their salary<\/strong>.\r\n<p>However, the RM4,000 salary level still matters in a few areas. Employees earning more than RM4,000 a month may not qualify for certain payments, such as overtime, work on rest days and some termination benefits. There are exceptions depending on the type of work the employee does.<\/p>\r\n<h3><strong>What Employment Terms Must Employers Follow?<\/strong><\/h3>\r\nEmployers should make sure employees know the basic terms of their job from the start. This normally includes components such as:\r\n<ul>\r\n<li>salary<\/li>\r\n<li>working hours<\/li>\r\n<li>leave<\/li>\r\n<li>job duties<\/li>\r\n<li>benefits and<\/li>\r\n<li>notice period<\/li>\r\n<\/ul>\r\nEmployers must also follow the minimum wage. Malaysia\u2019s minimum wage is currently <strong>RM1,700 per month<\/strong>.<\/section>\r\n<p>Clear employment terms can prevent confusion later, especially when it comes to pay, leave or leaving the company.<\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-3860 size-full\" src=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/08\/Key-Employee-Rights-Under-the-Employment-Act-1955-1.png\" alt=\"Key Employee Rights Under the Employment Act 1955\" width=\"1013\" height=\"700\" srcset=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/08\/Key-Employee-Rights-Under-the-Employment-Act-1955-1.png 1013w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/08\/Key-Employee-Rights-Under-the-Employment-Act-1955-1-300x207.png 300w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2026\/08\/Key-Employee-Rights-Under-the-Employment-Act-1955-1-768x531.png 768w\" sizes=\"auto, (max-width: 1013px) 100vw, 1013px\" \/><\/p>\r\n<h2><strong>What Leave Entitlements Do Employees Receive Under the Employment Act 1955?<\/strong><\/h2>\r\n<section id=\"section3\">The Employment Act gives employees a minimum amount of leave.\r\n<table>\r\n<thead>\r\n<tr>\r\n<td><strong>Leave<\/strong><\/td>\r\n<td><strong>Minimum<\/strong><\/td>\r\n<\/tr>\r\n<\/thead>\r\n<tbody>\r\n<tr>\r\n<td>Annual leave<\/td>\r\n<td>8, 12 or 16 days based on years worked<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Sick leave<\/td>\r\n<td>14, 18 or 22 days based on years worked<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Hospitalisation leave<\/td>\r\n<td>Up to 60 days<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Maternity leave<\/td>\r\n<td>98 days<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Paternity leave<\/td>\r\n<td>7 days<\/td>\r\n<\/tr>\r\n<tr>\r\n<td>Public holidays<\/td>\r\n<td>11 paid days<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nCompanies can give employees more leave than this, but not less.\r\n<pre><strong>Read also: <\/strong><a href=\"https:\/\/www.info-tech.com.my\/blog\/annual-leave-malaysia-rules-forecasts\/\"><strong>Annual Leave Malaysia 2026: Rules, Forecasts &amp; HR Practices<\/strong><\/a><\/pre>\r\n<h2><strong>How Do Working Hours, Overtime and Flexible Work Arrangements Work?<\/strong><\/h2>\r\n<section id=\"section4\">The normal limit is <strong>45 working hours a week<\/strong>.<\/section>\r\n<p>Employees who qualify for overtime should be paid extra when they work beyond their normal hours. On a normal working day, overtime usually starts at the rate of <strong>1.5 times the hourly pay<\/strong><\/p>\r\n<p>Employees can also ask for changes to their working hours, working days or even work location. The request should be conveyed through writing, and the employer has to reply within <strong>60 days<\/strong> of the request.<\/p>\r\n<pre><strong>Read also: <\/strong><a href=\"https:\/\/www.info-tech.com.my\/blog\/overtime-calculation-malaysia\/\"><strong>Overtime Calculation Malaysia Rules &amp; Eligibility<\/strong><\/a><\/pre>\r\n<h3><strong>What Are the Rules for Termination, Retrenchment and Workplace Protection?<\/strong><\/h3>\r\nWhen an employee leaves or is dismissed, the employer should follow the notice period in the employment contract or the period required under the Employment Act.<\/section>\r\n<p>Employees who lose their job because of retrenchment may also receive a payment based on their years of service, if they qualify.<\/p>\r\n<p>The Act also covers workplace issues such as:<\/p>\r\n<ul>\r\n<li>sexual harassment<\/li>\r\n<li>discrimination<\/li>\r\n<li>forced labour<\/li>\r\n<li>dismissal linked to pregnancy<\/li>\r\n<\/ul>\r\n<p>Employers who break the rules can face fines of up to <strong>RM50,000<\/strong> for some of the offences.<\/p>\r\n<h2><strong>What Employment Compliance Updates Should Employers Know in 2026?<\/strong><\/h2>\r\n<section id=\"section5\">There are also a few newer rules employers should be aware of. Some employment contracts may need to be stamped. EPF contributions also now apply to certain foreign employees.<\/section>\r\n<p>From June 2026, the salary levels for Employment Passes had changed as follows:<\/p>\r\n<ul>\r\n<li>Category I: RM20,000 and above<\/li>\r\n<li>Category II: RM10,000 to RM19,999<\/li>\r\n<li>Category III: RM5,000 to RM9,999<\/li>\r\n<\/ul>\r\n<p>These updates matter mainly to companies hiring foreign workers or expatriates.<\/p>\r\n<h2><strong>How Can Employers Stay Compliant with the Employment Act?<\/strong><\/h2>\r\n<section id=\"section6\">Employers do not need to make compliance complicated. Start with the basics: keep employment contracts updated, pay employees correctly and on time, track leave properly and keep clear records of the employees\u2019 working hours.<\/section>\r\n<p><a href=\"https:\/\/www.info-tech.com.my\/hrms-software\"><strong>HR<\/strong><\/a> and <a href=\"https:\/\/www.info-tech.com.my\/payroll-software\"><strong>payroll software<\/strong><\/a> can help with the record keeping with salary, <a href=\"https:\/\/www.info-tech.com.my\/leave-management-software\"><strong>leave<\/strong><\/a>, <a href=\"https:\/\/www.info-tech.com.my\/time-attendance-software\"><strong>attendance<\/strong><\/a> and employee information in one place. For most businesses, staying compliant simply comes down to knowing the current rules and making sure day-to-day HR practices match with them.<\/p>\r\n<h2><strong>Employment Act 1955 FAQs<\/strong><\/h2>\r\n<section id=\"section7\">\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\">What is the Employment Act 1955 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>The Employment Act 1955 is a main law in Malaysia (applies to employees in Peninsular Malaysia and Labuan) that covers basic employment rules.<\/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\">Is salary calculated for 30 days or 26 days in Malaysia under Employment Act 1955?<\/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>Under Employment Act 1955 of Malaysia, for overtime and the ordinary daily rate, a month\u2019s salary is divided by 26 days; for an incomplete month, salary is calculated using the actual number of days in that month\u2019s wage period.<\/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 employer force an employee to take annual leave in Malaysia under Employment Act 1955?<\/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>No, as per JTKSM, the employers cannot simply force employees to use their annual leave; annual leave should be granted and taken in line with Section 60E of the Employment Act 1955.<\/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\">How is overtime pay calculated under the Employment Act 1955 in Malaysia in 2026?<\/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>In Malaysia, overtime for eligible employees is generally calculated as monthly salary \u00f7 26 \u00f7 normal working hours per day \u00d7 overtime hours. The rates are 1.5\u00d7 on normal working days, 2\u00d7 for overtime on rest days, and 3\u00d7 for overtime on paid public holidays.<\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/section>\r\n<\/section>\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\": \"What is the Employment Act 1955 Malaysia?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"The Employment Act 1955 is a main law in Malaysia (applies to employees in Peninsular Malaysia and Labuan) that covers basic employment rules.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"Is salary calculated for 30 days or 26 days in Malaysia under Employment Act 1955?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"Under Employment Act 1955 of Malaysia, for overtime and the ordinary daily rate, a month\u2019s salary is divided by 26 days; for an incomplete month, salary is calculated using the actual number of days in that month\u2019s wage period.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"Can an employer force an employee to take annual leave in Malaysia under Employment Act 1955?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"No, as per JTKSM, the employers cannot simply force employees to use their annual leave; annual leave should be granted and taken in line with Section 60E of the Employment Act 1955.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"How is overtime pay calculated under the Employment Act 1955 in Malaysia in 2026?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"In Malaysia, overtime for eligible employees is generally calculated as monthly salary \u00f7 26 \u00f7 normal working hours per day \u00d7 overtime hours. 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Who Is[&#8230;]<\/p>\n","protected":false},"author":14,"featured_media":3861,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[105],"tags":[279,350,352,351],"class_list":["post-3854","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-business-management","tag-employment-act","tag-employment-act-1955","tag-employment-act-1955-malaysia","tag-employment-act-malaysia"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v25.8 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Employment Act 1955 \u2013 Summary for Employers &amp; Employees<\/title>\n<meta name=\"description\" content=\"Learn what is the Employment Act of 1955, who is covered, employment terms, leave entitlements, working hours &amp; compliance.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link 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