Everyone is covered now — with two salary-capped exceptions

By Equipo Saplic Published on 12/08/2026 Updated on 12/08/2026

And a new statutory right to request flexible work.

For guidance only

The amounts and deadlines in this guide can change by law. Always check the update date and the official sources cited below. For a specific case, consult the labour authority or a professional.

In this guide
  1. Coverage expanded
  2. Working hours
  3. Maternity and paternity
  4. Flexible work arrangements
  5. Written contracts
  6. The minimum wage
  7. Sexual harassment and discrimination
  8. Penalties

The Employment Act 1955 was significantly amended in 2022, and the changes matter to almost every Malaysian employee.

Coverage expanded

From 1 January 2023, the Act applies to all employees in Peninsular Malaysia and Labuan, regardless of salary.

The exceptions: the sections on overtime payments and termination benefits do not apply above RM4,000 per month.

Employees in Sabah and Sarawak are covered by separate state ordinances.

Working hours

No more than 8 hours per day or 45 hours per week. Work beyond that is overtime, compensated at a minimum of 1.5 times the hourly rate.

Maternity and paternity

  • Maternity: 98 consecutive days, fully paid — increased from 60 days under the 2022 amendment
  • Paternity: 7 consecutive days for married male employees

Flexible work arrangements

A statutory right introduced by the amendments: employees may request flexible work arrangements regarding working hours, working days or work location.

Employers must evaluate such requests fairly and transparently.

Written contracts

Employers must provide written employment contracts to employees employed for more than one month.

Mandatory provisions include job title and duties, salary and benefits, working hours, leave entitlements, probation period, notice periods, termination conditions, and EPF, SOCSO and EIS contributions.

Note: the absence of a written contract does not automatically mean no employment relationship exists. It means the employer failed an obligation.

The minimum wage

RM1,700 per month, effective from 1 February 2025, raised from RM1,500. Extended to all employers including micro-enterprises from 1 August 2025.

Sexual harassment and discrimination

Employers must take proactive steps: a clear anti-harassment policy, notices promoting awareness, a formal complaints process, prompt investigations and disciplinary action.

Discrimination based on gender, race, religion or disability is prohibited.

Penalties

Non-compliance can result in fines of up to RM50,000 per offence.

Frequently asked questions

Who does the Employment Act cover now?
All employees in Peninsular Malaysia and Labuan regardless of salary since 1 January 2023, except that overtime and termination benefit sections do not apply above RM4,000 monthly.
What are the working hour limits?
No more than 8 hours per day or 45 hours per week. Beyond that is overtime, at a minimum of 1.5 times the hourly rate.
Can I request flexible working?
Yes. The amendments introduced a statutory right to request flexible arrangements on hours, days or location, and employers must evaluate requests fairly.
Is a written contract required?
Yes, for employment exceeding one month, covering duties, salary, hours, leave, probation, notice, termination and contributions. Its absence does not mean no employment exists.
What is the minimum wage?
RM1,700 per month from 1 February 2025, extended to all employers including micro-enterprises from 1 August 2025.

Sources

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