Annual Leave & Public Holidays Malaysia 2026: Entitlements, Carry Forward & Encashment
By SuperJobs Team · 6 min read
Quick Answer: Malaysian employees are entitled to 8–16 days of annual leave depending on tenure, plus 11 gazetted public holidays — with premium pay (2x–3x) if required to work on holidays. This guide covers your full leave entitlements, carry-forward rules, and encashment rights.
Understanding your leave entitlements is essential for maintaining work-life balance. Malaysian law sets minimum standards for annual leave, sick leave, and public holidays that apply to all employees.
Annual Leave Entitlements (Section 60E)
| Length of Service | Minimum Annual Leave |
|---|---|
| Less than 2 years | 8 days per year |
| 2 – 5 years | 12 days per year |
| More than 5 years | 16 days per year |
Many employers offer more generous leave packages than the statutory minimum, particularly MNCs and tech companies which commonly offer 14-20 days from day one.
Sick Leave (Section 60F)
| Length of Service | Sick Leave (Outpatient) | Hospitalisation Leave |
|---|---|---|
| Less than 2 years | 14 days | 60 days |
| 2 – 5 years | 18 days | 60 days |
| More than 5 years | 22 days | 60 days |
Hospitalisation leave is in addition to outpatient sick leave. Total sick leave + hospitalisation cannot exceed 60 days per year.
Public Holidays (Section 60D)
Statutory Entitlement
- All employees are entitled to at least 11 gazetted public holidays per year
- 5 of these are mandatory: National Day, Yang di-Pertuan Agong's Birthday, Birthday of the Ruler/Yang di-Pertua Negeri, Labour Day, and Malaysia Day
- The remaining 6 are chosen by the employer from the list of gazetted holidays
Public Holiday Pay
| Situation | Entitlement |
|---|---|
| Not required to work | Full day's pay (included in monthly salary) |
| Required to work on public holiday | Additional 2 days' pay (total 3x for the day) |
| Public holiday falls on rest day | Next working day becomes a paid holiday |
Leave Carry Forward & Encashment
| Policy | Legal Position |
|---|---|
| Carry forward | Not mandated by law - governed by company policy or contract |
| Encashment | Not mandated by law - but if employment is terminated, unused annual leave must be paid out |
| Forfeiture | Must be clearly stated in the employment contract to be enforceable |
| Pro-rated leave on resignation | Leave is pro-rated based on months of service in the calendar year |
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?Frequently Asked Questions
How many annual leave days are Malaysian employees entitled to?
Under the Employment Act 1955, employees are entitled to a minimum of 8 days annual leave for 1-2 years of service, 12 days for 2-5 years, and 16 days for more than 5 years. Many employers offer more generous leave entitlements as part of their benefits package.
How many public holidays are there in Malaysia in 2026?
Malaysia has 11 gazetted public holidays per year at the federal level. States may declare additional holidays. If a public holiday falls on a rest day, the next working day is typically a paid replacement holiday. Employees who work on public holidays are entitled to premium pay.
Can my employer force me to take annual leave in Malaysia?
Employers can direct employees to take annual leave during company shutdowns or festive periods, provided this is stated in the employment contract or company policy. However, employees generally have the right to choose when to use a reasonable portion of their leave entitlement.
Can I carry forward unused annual leave in Malaysia?
The Employment Act does not mandate carry-forward of unused leave. Whether leave can be carried forward depends on company policy. Some employers allow carry-forward of a limited number of days, while others follow a 'use it or lose it' policy. Check your employment contract.
Am I entitled to leave encashment if I resign in Malaysia?
Yes, upon resignation or termination, employees are entitled to payment for any unused annual leave. The payment is calculated based on the employee's ordinary rate of pay for each day of unused leave. This is a statutory right under the Employment Act.