CAREER
The Employment Act 1955 is the principal legislation governing the relationship between employers and employees in Peninsular Malaysia. It serves as the main guideline in determining the welfare, rights, and responsibilities of both employees and employers. Key Provisions Working Hours Employees are entitled to normal working hours not exceeding 45 hours per week . Annual Leave Less than 2 years of service: 8 days 2–5 years of service: 12 days More than 5 years of service: 16 days Sick Leave Less than 2 years of service: 14 days 2–5 years of service: 16 days More than 5 years of service: 22 days Hospitalisation Leave Up to 60 days . Maternity Leave 98 consecutive days , including rest days and public holidays. Eligible for maternity allowance provided that the employee: Has worked for at least 90 days in the 9 months prior to confinement Has fewer than 5 living children Paternity Leave 7 consecutive days , including rest days and public holidays. Applicable for up to 5 births , regardless of the number of wives. Conditions: legally married, and the employer must be notified of the wife’s pregnancy at least 30 days before the expected confinement or as soon as possible after birth. Minimum Wage Ensures that all employees receive the minimum wage set by the Government. Termination Protection Regulates the management of employee termination and ensures that the rights and welfare of employees are protected. Reference: Jabatan Tenaga Kerja Semenanjung Malaysia The Sabah Labour Ordinance is the principal labour legislation enforced specifically in the state of Sabah. It aims to protect employees’ rights and ensure fair employment relations between employers and employees. Key Provisions Working Hours Employees are entitled to normal working hours not exceeding 45 hours per week . Annual Leave Less than 2 years of service: 8 days 2–5 years of service: 12 days More than 5 years of service: 16 days Sick Leave Less than 2 years of service: 14 days 2–5 years of service: 16 days More than 5 years of service: 22 days Hospitalisation Leave Up to 60 days . Maternity Leave 98 consecutive days , including rest days and public holidays. Eligible for maternity allowance provided that the employee: Has worked for at least 90 days in the 9 months prior to confinement Has fewer than 5 living children Paternity Leave 7 consecutive days , including rest days and public holidays. Applicable for up to 5 births , regardless of the number of wives. Conditions: legally married, and the employer must be notified of the wife’s pregnancy at least 30 days before the expected confinement or as soon as possible after birth. Minimum Wage Ensures all employees receive the minimum wage set by the Government. Termination Protection Regulates the management of employee termination and safeguards employees’ rights and welfare. Reference: Jabatan Tenaga Kerja Sabah The Sarawak Labour Ordinance is the principal legislation governing the relationship between employers and employees in the state of Sarawak. Key Provisions Working Hours Amended from 48 hours per week to 45 hours per week. Sick Leave 14 days per year. Hospitalisation Leave Up to 60 days per year. Maternity Leave 98 consecutive days, including rest days and public holidays. Eligible for maternity allowance provided that the employee: Has worked for at least 90 days in the 9 months prior to confinement Has fewer than 5 living children Paternity Leave 7 consecutive days , including rest days and public holidays. Applicable for up to 5 births , regardless of the number of wives. Conditions: legally married, and the employer must notify the wife’s pregnancy at least 30 days before the expected confinement or as soon as possible after birth. Reference: Jabatan Tenaga Kerja Sarawak
Based on the Employment Act 1955, pregnant female workers in Malaysia are protected by labour laws that set out certain rights and benefits to ensure their welfare is taken care of throughout pregnancy and after delivery. The following are some of the rights and benefits of pregnant workers: Maternity Leave Duration: Minimum 98 consecutive days (effective January 2023). Payment: Fully paid if: Has worked for at least 90 days in the 9 months prior to delivery, and Has informed the employer of the pregnancy and expected date of delivery. Can be started as early as 30 days before the expected date of delivery. Protection from dismissal during pregnancy Employers cannot terminate a pregnant employee due to pregnancy. Dismissal is only permitted if due to serious misconduct, company closure, or reduction in staff, and evidence must be provided. Reference: Employment Act 1955 (Amendment 2022) – Department of Labour
The Employees Provident Fund (EPF) is a mandatory retirement fund for private sector and some public sector employees. EPF contributions are an employee's right as they ensure that you have retirement savings, social protection and can be used in certain circumstances such as education, housing and health. Employer and Employee Obligations Employers must register with the EPF and make monthly contributions from employee salaries Employers must also add their own share of contributions Contribution Rates Employer: 13% (if salary ≤ RM5,000) or 12% (if salary > RM5,000) Employee: 11%
EPF savings are divided into three accounts: Retirement Account (75%) As a source of income during retirement Can only be withdrawn when the employee reaches the age of 55 Sejahtera Account (15%) For retirement preparation. Can be withdrawn for specific purposes such as buying a house, medical treatment for critical illnesses, purchasing insurance/takaful coverage, performing Hajj or education fees with certain conditions Flexible Account (10%) Allows employees to access their savings if needed with certain conditions
Social Security Organisation (PERKESO) is a government agency in Malaysia responsible for providing social security protection to workers in both the formal and informal sectors through various social security schemes. PERKESO’s goal is to protect workers from the risks of occupational accidents, work-related diseases, job loss, and disabilities that may affect their income. Role of PERKESO Administering and enforcing the Employees’ Social Security Act 1969, Self-Employment Social Security Act 2017, Employment Insurance System Act 2017, and Housewives’ Social Security Act 2022. Managing and implementing the social security protection schemes provided under these four Acts. Ensuring the social security funds remain sustainable and strong to guarantee operational continuity. Promoting awareness of social security protection and good risk management through impactful prevention, safety, and rehabilitation programs for all segments of society. Expanding a more inclusive and universal social security network to increase financial inclusiveness and customer well-being. Delivering high-quality and efficient services beyond customer expectations in line with the concept of “prihatin” (care/concern) as a social security provider, supported by digitalisation of operations. PERKESO Mission To provide comprehensive social security protection for the social well-being of all, throughout life. PERKESO Brand: Lindung To improve understanding and access to its protection schemes, PERKESO introduced a new brand, Lindung , which covers the following key protection products: Lindung Pekerja – PERKESO protection scheme for formal workers (Employees’ Social Security Act 1969) Lindung Kerjaya – Employment Insurance System (Employment Insurance System Act 2017) Lindung Kendiri – Social Security Scheme for Self-Employed (Self-Employment Social Security Act 2017) Lindung Kasih – Housewives’ Social Security Scheme (Housewives’ Social Security Act 2022)
The Social Security Organization (SOCSO) was established through the Employees' Social Security Act 1969. It provides social security protection to employees through a joint contribution scheme between employers and employees. SOCSO contributions are the rights of employees because they protect them from the risk of occupational accidents, occupational diseases, disability and death while working. Obligations of Employers and Employees All employers are required to register employees with SOCSO within 30 days from the date of employment. The employer must deduct the employee's contribution and pay the employer's share of the contribution.
The following are the main protection schemes under SOCSO for contributors in the formal sector: Covers accidents that occur at work or while commuting to/from work. This scheme provides compensation for permanent disability, loss of income or death. Benefits for employees who are unable to work due to a permanent critical illness. Among the benefits of the Disability Scheme are Disability Assistance, Disability Pension and Survivors' Pension. Assisting employees who have lost their jobs to obtain job re-placement. Examples of job loss include: VSS/MSS (voluntary separation scheme/mutual agreement) Closing of workplace due to natural disaster (force majeure) Bankruptcy or business closure SIP benefits include Job Search Allowance, Training Allowance and Job Placement.
The Occupational Safety and Health Act (OSHA) 1994 aims to ensure the safety, health and welfare of people at work and to protect others from safety and health hazards in all workplaces throughout Malaysia. This Act outlines: Employer Responsibilities: Provide a safe, healthy and hazard-free work environment for all its employees. Employee Rights: Employees have the right to report any unsafe working conditions to the Department of Occupational Safety and Health (DOH).
The Department of Labour (JTK) plays a vital role in ensuring that labour laws are complied with by employers and that workers are protected. Roles of JTK: Enforcement of Labour Laws JTK is responsible for ensuring that employers comply with labour laws, including the payment of minimum wages, working hours, and the management of employee termination. Investigating Workers’ Complaints Workers facing issues such as unpaid wages, unfair dismissal, or workplace discrimination may file a complaint with the Department of Labour (JTK). Complaints can be channeled through two main ways: Visit the nearest JTK office Through the Working for Workers (WFW) mobile application Advice and Awareness JTK also provides advice to employees and employers on their respective rights and responsibilities. This includes promoting best practices in the workplace.
Based on the Employment Act 1955, pregnant female workers in Malaysia are protected by labour laws that set out certain rights and benefits to ensure their welfare is taken care of throughout pregnancy and after delivery. The following are some of the rights and benefits of pregnant workers: Maternity Leave Duration: Minimum 98 consecutive days (effective January 2023). Payment: Fully paid if: Has worked for at least 90 days in the 9 months prior to delivery, and Has informed the employer of the pregnancy and expected date of delivery. Can be started as early as 30 days before the expected date of delivery. Protection from dismissal during pregnancy Employers cannot terminate a pregnant employee due to pregnancy. Dismissal is only permitted if due to serious misconduct, company closure, or reduction in staff, and evidence must be provided. Reference: Employment Act 1955 (Amendment 2022) – Department of Labour