The Employment Act 1955 sets out the minimum benefits that are afforded to applicable employees, and it only applies to:
- Employees whose monthly salary does not exceed RM2,000
- Employees who are engaged in manual labour, regardless of salary
- Employees engaged in the operation or maintenance of mechanically propelled vehicle
- Employees who supervise or oversees other employees engaged in manual labour
- Employees engaged in any capacity on a vessel (subject to certain other conditions)
Important Note: For applicable employees – any clause in an employment contract that purports to offer less favourable benefits than those set out in the Employment Act, shall be void and replaced with the minimum benefits in the Employment Act.
2019 Malaysia Employment Benefits Overview
Malaysian employees are entitled to most the following benefits (as stipulated in the the Employment Act 1955) from the first day of employment.
- not more than 5 consecutive hours without a period of leisure of not less than 30 minutes duration
- not more than 8 hours in 1 day
- not more than 48 hours in 1 week
Public Holidays: 11 paid gazetted public holidays
- 8 days for every 12 months of continuous service for a period of less than 2 years
- 12 days for every 12 months of continuous service for a period of 2 years or more but less than 5 years
- 16 days for every 12 months of continuous service for a period of five years or more
Paid Sick Leave:
- where no hospitalisation is necessary
- 14 days if the employee has been employed for less than 2 years
- 18 days if the employee has been employed for 2 years or more but less than 5 years
- 22 days if the employee has been employed for 5 years or more
- 60 if hospitalisation is necessary, as may be certified by such registered medical practitioner or medical officer
Retirement: Employees Provident Fund (EPF) in excess of the statutory EPF contribution is:
• 2% for more than 1 year of service and below 4 years of service
• 3.5% for more than 4 years of service.
• Generalist Outpatient – An employee, one legal spouse and their dependent children are eligible to receive medical attention and treatment from company panel doctors. If employee chooses to obtain necessary care and treatment from a non-panel doctor, pay first and claim in accordance with the Health Plan Policy.
• Specialist Consultation – For Specialist Consultation, a referral letter from company panel doctor or In-Plant visiting doctor to a specialist is required. The Company will cover the Specialist Consultation in accordance with the Health Plan Policy.
• Dental / Optical Subsidy – Employees are entitle for the dental/optical care and treatment in accordance with the Health Plan Policy.
• Maternity benefit – Employees/spouse are entitled for Maternity (pre/post-natal visits and delivery cost) in accordance with the Health Plan Policy.
• Hospitalization & Surgical benefit – Employees, one legal spouse and their dependent children are eligible for Hospitalization & Surgical benefits in accordance with the Health Plan Policy.
• Total & Permanent disability: 36 x monthly basic salary.
• Death & Loss of body part due to accident: 36 x monthly basic salary.
• Sick Leave: 14 days per year for the first 2 years of service.
• Maternity Leave: 60 consecutive days for birth up to 5 surviving child.
• Paternity Leave: Male employees are eligible to 2 working days leave for the birth of their own child up to 5 surviving child.
• Marriage Leave: 5 days leave for first legal marriage per employment.
• Compassionate Leave: 3 consecutive working days on the death of their immediate family member.
• Child marriage Leave: 1 day marriage of legal child.
Employee Stock Purchase Plan: Employees are eligible to participate in the Stock Purchase Plan after 90 days of employment.
• Vehicle Purchase Interest Subsidy – The Company shall subsidize employees seventy percent (70%) of the interest incurred per annum. The minimum repayment period for each loan shall be 12 months and the maximum repayment period shall be 60 months.
• Gift for Retirees – Employee will receive appreciation retirement gift from the Company when attaining the age of 60 or optional retirement age of 55 or 56 or 57 or 58 or 59.
• Child Birth Gift – The Company will provide maternity hamper for female employees and registered spouse who are hospitalized.
• Birthday Gift – All employees will receive greeting card & birthday gift from the Company.
• Professional Membership – IDL employee is entitled to reimburse 100% of one professional membership per year according to his/her profession/job needs.