Sick Leave in Malaysia: What Employees are entitled to

In Malaysia, employees are legally entitled to 14, 18, or 22 days of paid outpatient sick leave annually, depending on their years of service. Additionally, a separate 60-day hospitalization leave is provided for more serious conditions. 

Falling ill is stressful enough without worrying about whether your Medical Certificate will be accepted. Between informing your manager, arranging clinic visits, and understanding panel clinic requirements, many employees feel unnecessary pressure during recovery. Hence, this guide explains:

• What employees are entitled to
• How to employees can claim their sick leave
• How HR and management should process sick leave from employees

Sick Leave & Hospitalization Summary 

How Does Outpatient Sick Leave Work?

Paid outpatient sick leave covers common, short-term illnesses, such as flu, food poisoning, or migraines.

Entitlement by length of service

• Less than 2 years: 14 days per calendar year
• 2 to 5 years: 18 days per calendar year
• More than 5 years: 22 days per calendar year

Important rules employees often miss

• Sick leave is not cumulative
• Unused days do not carry forward
• Balances reset every 1 January

If you used only 2 days in 2025, you still start 2026 with the same statutory entitlement, not an accumulated balance.

“Outpatient sick leave entitlements are governed under Section 60F of the Employment Act 1955, as amended. This provision sets the minimum number of paid sick leave days based on an employee’s length of service and applies to employees covered under the Act.”

What Are the Rules for Hospitalization Leave?

Hospitalization leave is a separate 60-day paid entitlement reserved for serious medical conditions. 

It is important to reiterate that hospitalization leave is not the same as outpatient sick leave, and the two should not be treated interchangeably.

What qualifies as hospitalization?

You do not need to be warded overnight to qualify. A registered medical practitioner may certify hospitalization where medically necessary, including for:

• Surgery and post-operative recovery
• Dengue or other prolonged viral infections
• Pregnancy-related complications
• Medically required bed rest or extended recovery

Legal change from 2023

Following the Employment (Amendment) Act 2022, which took effect on 1 January 2023, hospitalisation leave is no longer inclusive of outpatient sick leave for employees covered under the Employment Act 1955. In practice, this means:

• Hospitalisation leave no longer deducts from your outpatient sick leave balance; and
• Using outpatient MCs does not reduce your separate 60-day hospitalisation entitlement.

The Labour Department (JTKSM) summarises this in its 2023 FAQ and infographic as total potential paid medical-related leave of 74, 78, or 82 days a year, depending on whether your service is under 2 years, 2–5 years, or more than 5 years.

To avoid misclassification

• If your MC states only “unfit for work,” it may be counted as outpatient sick leave
• If the MC clearly states “hospitalization” or “warded,” it should be deducted from the 60-day hospitalization entitlement.

We hope this helps differentiate both employees and employers.

Can an Employer Reject Your Medical Certificate (MC)?

Not if it is valid, properly issued, and the employer is notified on time.

Under Malaysian employment law, an employer does not have discretion to reject a Medical Certificate simply because it is inconvenient or issued outside a preferred clinic network. 

What makes a Medical Certificate legally valid?

For an MC to be legally recognised, it must be issued by:

• A medical practitioner registered under the Medical Act 1971, or
• A dental surgeon registered under the Dental Act 1971

This applies regardless of whether the consultation took place at:

• A government hospital or clinic
• A private medical centre
• A non-panel clinic
• A recognised telemedicine provider

As long as the practitioner is registered, the MC carries legal weight.

Panel clinic vs non-panel clinic: what employers can and cannot do

Many employers encourage the use of panel clinics for administrative convenience and cost control. However, this preference does not override statutory rights.

Employers may:

• Request employees to visit panel clinics where reasonably possible
• Require additional verification for administrative purposes

Employers cannot legally reject an MC solely because it was issued by:

• A government hospital or public clinic
• A non-panel private clinic

An MC from a registered practitioner remains valid even if the employer would have preferred a different clinic.

The only lawful grounds for rejecting an MC

An employer may reject a Medical Certificate only if one of the following applies:

• Suspected fraud
  The MC appears altered, forged, or inconsistent, such as mismatched dates or clinic details
• Breach of the 48-hour notification rule
  The employee failed to inform the employer of the illness or absence within 48 hours
• Unregistered source
  The MC was issued by a person not licensed under Malaysian medical or dental law

Outside of these circumstances, rejection of a valid MC may expose the employer to labour disputes or non-compliance risks.

Notification is important: Possessing a valid MC alone is not enough. Under Section 60F of the Employment Act, you must inform your employer of your sick leave within 48 hours for it to qualify as paid sick leave.

Does Sick Leave Apply to Interns, Part-Time Staff, and Employees on Probation?

1. Employees on probation

Yes. Probationary employees are entitled to sick leave.

Sick leave entitlement is based on employment status, not confirmation status. If an employee is hired under a contract of service and covered by the Employment Act, sick leave applies from day one.

What this means in practice:

• Same 14 / 18 / 22-day outpatient entitlement applies
• 60-day hospitalization leave also applies
• Employers cannot deny sick leave due to probation status

Probation affects performance evaluation, not statutory medical rights.

2. Part-time employees

Part-time employees are also entitled to sick leave, usually on a prorated basis.

Part-time staff covered under the Employment Act receive paid sick leave calculated according to their working schedule.

Common Malaysian practice:

• Sick leave is prorated based on weekly workdays or hours
• MC requirements remain the same
• Payment is based on ordinary pay for scheduled working days

Part-time status affects calculation, not eligibility.

3. Interns and trainees

It depends on how the internship is structured.

Interns are not automatically covered unless they are considered employees under a contract of service.

Many employers voluntarily grant sick leave to interns, but this is a policy decision, not a statutory obligation.

Important note: Interns should always check their internship agreement to confirm sick leave, MC acceptance, and pay during illness.

Important Digital MC Verification Update

As of 23 September 2025, the Malaysian Medical Council (MMC) has formally banned the issuance of MCs solely following a teleconsultation (video or other virtual consult) without a physical examination.

In its official notification and updated FAQs, MMC states that an MC should only be issued after an appropriate consultation, which includes:

• History taking
• Physical examination, and
• Further investigations where necessary.

In simple terms:

• A “digital MC” (PDF, QR code, portal download) is still acceptable if it was issued after an in-person assessment.
• What is not compliant with MMC’s 2025 directive is an MC clearly issued purely via teleconsultation, with no physical examination at all.
• Many HR and legal advisors now recommend that employers reject MCs that are obviously teleconsult-only, and to require employees to obtain an in-person assessment instead.

The principle is this: The assessment must be in person; the document itself can be digital.

What Happens If You Run Out of Sick Leave?

Exhausting your statutory sick leave does not automatically lead to termination. 

However, it does change how your absence is treated from a pay and HR perspective.

What typically happens next

Once your outpatient or hospitalization entitlement is exhausted, payment stops, but employment protection does not disappear.

Employer rights in prolonged or chronic illness cases

When illness becomes long-term or recurrent, employers may take additional steps to assess role suitability.

Employers may request:

• Medical review: An updated assessment from a registered practitioner
• Fitness-for-work evaluation: To determine whether you can safely perform your job duties

These reviews are intended to assess capability, not to penalise illness.

Additional leave support offered by some employers

To prevent burnout or repeated unpaid leave, many Malaysian companies now introduce non-statutory buffers.

Common company-provided benefits include:

• Wellness days: Discretionary rest days outside statutory leave
• Mental health leave: Time off specifically for psychological wellbeing, especially for burnout
• Flexible work arrangements: Temporary remote work or adjusted hours during recovery

Important note: These benefits are company policies, not legal entitlements. 

Using Employee Rights and Responsibilities

Sick leave in Malaysia is designed to protect both employees and employers. When applied correctly, it allows employees the time they need to recover, while giving employers clear rules to manage attendance, payroll, and compliance..

So, if your organisation needs to update HR policies, internal guides, or employee-facing content, our content marketing agency, helps local businesses write clear, compliant, and practical content for:

• HR policy updates and employee handbooks
• Internal announcements and workplace compliance guides
• Employer-facing explainers that balance clarity with legal accuracy

Source:

• Employment Act 1955 (Akta Kerja 1955), Section 60F – Cuti sakit bergaji
  Official act text (Malay/English) – establishes statutory sick leave, hospitalisation leave, and conditions (MC + 48-hour notice).
• JTKSM FAQ – Akta Kerja 1955 (Pindaan 2022): Cuti Sakit & Hospitalisasi
  Confirms new entitlements from 1 Jan 2023: 14 / 18 / 22 days sick leave + additional 60 days hospitalisation, totalling 74 / 78 / 82 days.
• Employment (Part-Time Employees) Regulations 2010 – JTKSM
• MMC – “Notification on the Issuance of Medical Sick Certificate… Through Teleconsultation” (23 Sept 2025)
  Official directive that MCs issued solely following a teleconsultation are not allowed
• MMC – “FAQs on Medical Sick Certificate” (2022; referenced in 2025 comms)
  Clarifies purpose of MC, duration, review for extensions, mental vs physical illness, and confidentiality (diagnosis in MC only with employee consent).