Malaysia
Malaysia is governed by the Employment Act 1955, with the 2022 amendments now applying to all employees regardless of salary. EPF, SOCSO, and EIS contributions are administered separately.
Notice (5+ yr)
8 weeks
Min. wage
RM1,500/mo
Maternity
98 days
Annual leave
8–16 days
Employment contracts
Reviewed 2026-04-08The 2022 amendments removed the previous salary ceiling for Act coverage. Every employee is now in scope.
Written contracts required for engagements over 1 month. Must specify wages, hours, leave, and termination terms.
Watch out
Independent contractor classifications are scrutinized. If the person works regular hours, takes direction, and uses your tools, courts will treat them as an employee regardless of contract title.
Probation
Reviewed 2026-01-15There is no such thing as 'easy' termination during probation in Malaysia. Industrial Court will still ask whether the dismissal was with just cause and excuse.
Typically 3–6 months. Probationary employees enjoy the same statutory protections as confirmed employees — termination still requires just cause.
Watch out
Failing to confirm in writing at the end of probation is treated as automatic confirmation. Diary the confirmation date.
Termination
Reviewed 2026-04-08Industrial Court reinstates wrongful dismissal cases frequently. Documentation of the performance issue or operational reason is the single biggest protection.
Notice periods: 4 weeks (<2 years), 6 weeks (2–5 years), 8 weeks (5+ years). Termination benefits payable for non-misconduct dismissals.
Watch out
Mutual separation agreements need to be genuinely mutual. A one-sided 'you can resign or be terminated' conversation will be unpicked at the Industrial Court.
Minimum wage
Reviewed 2026-05-15The Progressive Wage Policy pilot adds an upward path on top of the floor for participating employers.
RM1,500 per month nationally as of the latest order. Reviews occur every 2 years.
Leave entitlements
Reviewed 2026-04-08Annual leave can be carried over only if the contract or company policy allows. Default is forfeiture at year-end.
8 days annual leave (<2 years), 12 days (2–5 years), 16 days (5+ years). 14 days sick leave, more if hospitalised. 98 days paid maternity. 7 days paternity.
Recent regulatory changes
Reviewed 2026-05-15Anti-Sexual Harassment Tribunal operational since March 2026. EPF voluntary contribution ceiling raised to RM100,000 in May 2026.
Recent changes
2026-05-15
Progressive Wage Policy pilot launched
2026-05-09
EPF voluntary contribution ceiling raised
2026-04-08
2022 Employment Act amendments fully in force
2026-03-28
Anti-Sexual Harassment Tribunal operational
Three things people get wrong about Malaysia
- 1.Probation termination is easy. The Industrial Court still asks for just cause and excuse.
- 2.Independent contractor labels protect you. Courts look at control, hours, and tools — not titles.
- 3.Confirmation happens automatically. Missing the written confirmation = deemed confirmed anyway.
Cross-country compare
Quick read across the six jurisdictions HR Asia tracks.
| Country | Probation | Notice | Leave |
|---|---|---|---|
| 🇮🇩 Indonesia | 3 months | — | 12 days |
| 🇸🇬 Singapore | 3–6 months | 2 weeks | 7 days |
| 🇲🇾 Malaysia | 3–6 months | 4 weeks | 8 days |
| 🇵🇭 Philippines | 6 months | — | 5 days |
| 🇮🇳 India | 3–6 months | 1 month | 12–21 days |
| 🇯🇵 Japan | 3–6 months | — | 10 days |
Managing this automatically? Aire handles contract generation tied to your live compliance requirements — country by country.
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This page is editorial, not legal advice. Always confirm with local counsel before acting on any specific case.