Annual Leave
Calculate pro-rated annual leave and leave balance instantly for FREE.
Annual leave is paid time off provided by employers to employees for rest, vacation, or personal reasons. In Malaysia, annual leave entitlement is governed by the Employment Act 1955. Employers must offer the mandatory minimum leave days based on the length of service.
The Malaysian Employment Act 1955 provides minimum statutory guidelines for paid leaves:
| Years of Service | Minimum Leave Entitlement |
|---|---|
| Less than 2 Years | 8 Days / year |
| 2 - 5 Years | 12 Days / year |
| More than 5 Years | 16 Days / year |
Annual leave is calculated based on your years of service. If an employee joins in the middle of a calendar year, their entitlement for that first year is typically pro-rated.
Pro-rated Leave = (Months Worked ÷ 12) × Annual Leave
Entitlement
Example Calculation:
An employee with an
entitlement of 12 days joins on July 1st. They will work exactly 6
months of the year.6 ÷ 12 × 12 = 6 days
While both are paid time off, their legal definitions in Malaysia differ:
Used for rest, vacation, or personal errands. Usually requires advanced approval from the employer depending on company policy.
Used only when unfit for work due to illness. Requires a medical certificate (MC) from a registered medical practitioner.
Yes. Employers in Malaysia have the right to approve or reject leave applications based on operational requirements. However, continuous unreasonable rejection runs contrary to fair labor practices. Employees should provide sufficient notice per their employment contract.
There are generally three scenarios depending on your employment contract and company policy:
If you resign and still have remaining pro-rated annual leave, the employer is generally required to either pay out the remaining days as cash in your final salary, or allow you to use those days to offset your notice period. This is governed by your contract and mutual agreement.
Under the Malaysian Employment Act 1955, annual leave entitlement increases with years of service. Here is the minimum entitlement employers must provide.
| Years of Service | Minimum Entitlement |
|---|---|
| Less than 2 years | 8 days per year |
| 2 years to less than 5 years | 12 days per year |
| 5 years and above | 16 days per year |
These are minimum entitlements. Employers may provide more leave at their discretion.
If an employee joined mid-year, their annual leave is pro-rated based on months worked.
Pro-Rated Leave = (Entitlement Days ÷ 12) × Months Worked
Example:
Employee joined on 1 April 2026.
Pro-rated leave = (8 ÷ 12) × 9 = 6 days
Pro-Rated Leave Examples:
| Start Month | 8 Days Entitlement | 12 Days Entitlement | 16 Days Entitlement |
|---|---|---|---|
| January | 8 days | 12 days | 16 days |
| April | 6 days | 9 days | 12 days |
| July | 4 days | 6 days | 8 days |
| October | 2 days | 3 days | 4 days |
The formula is (Months Worked ÷ 12) × Annual Leave Entitlement.
Yes, unless company policy allows carry-forward, unutilized annual leave typically expires.
Yes, employers can approve or reject based on operational needs, provided they adhere to the minimum notice periods.
Under the Employment Act, an employer must compensate you for unused pro-rated annual leave balance.
No, annual leave only counts towards working days. Rest days do not count.
Yes, under the Employment Act 1955, employees must be given a minimum amount (8 to 16 days depending on tenure).
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