Malaysia’s sick leave rules sit in section 60F of the Employment Act 1955. The structure is two-tiered, similar to Singapore’s: a paid outpatient pool that grows with service, plus a separate 60-day hospitalisation pool that is inclusive of the outpatient days. Since the 1 January 2023 amendments brought all employees with monthly wages up to RM4,000 into the Act and extended several protections to higher earners, sick leave compliance has become a Ministry of Human Resources audit priority.
This guide covers section 60F as it operates in 2026: the 14/18/22 outpatient scale, the 60-day hospitalisation cap, who qualifies, certification requirements, and the pitfalls Malaysian employers most often run into.
Key takeaways
- Employees covered by the Employment Act get 14, 18, or 22 days of paid outpatient sick leave per year depending on length of service, plus up to 60 days hospitalisation leave (inclusive of outpatient days).
- The outpatient scale: 14 days in years 1–2, 18 days in years 3–4, 22 days from year 5 onward.
- Sick leave must be certified by a registered medical practitioner or dental surgeon, including a panel doctor or any government clinic.
- Sick leave is paid at the ordinary rate of pay, the same basis used for annual leave under section 60E.
- The 1 January 2023 amendments brought all employees with monthly wages up to RM4,000 into the Act’s main protections and extended certain provisions to higher earners.
The two-tier entitlement
Section 60F of the Employment Act 1955 sets out paid sick leave by completed years of service:
| Years of service completed | Outpatient sick leave | Hospitalisation (inclusive) |
|---|---|---|
| Less than 2 | 14 days | 60 days |
| 2 to less than 5 | 18 days | 60 days |
| 5 or more | 22 days | 60 days |
The 60-day hospitalisation cap is the maximum total sick leave in any given year. It is not added on top of the outpatient pool — it includes it. An employee in year three who uses 18 outpatient days and is then hospitalised has 42 days of paid hospitalisation leave remaining (60 minus 18).
What counts as hospitalisation
Hospitalisation under section 60F covers admission to a hospital as an inpatient, day surgery requiring observation, and recuperation after inpatient treatment as certified by the registered practitioner. A “rest at home” certificate from a GP without a hospital admission is outpatient sick leave, drawing from the 14/18/22 pool — not from the 60-day pool.
Quarantine on the order of a Malaysian government health authority during a public health event is treated as hospitalisation leave.
Certification rules
Sick leave must be certified for it to be paid. Section 60F recognises certificates issued by:
- A registered medical practitioner under the Medical Act 1971
- A registered dental surgeon for dental conditions
- A medical officer in the public service of Malaysia
- A doctor appointed by the employer (a panel doctor) where one exists
Employers can maintain a panel of doctors but cannot reject a valid certificate from any registered practitioner outside the panel without good cause. The Ministry of Human Resources has historically taken a dim view of blanket policies that reject GP or government clinic MCs.
The employee must inform the employer of the absence within 48 hours where reasonably practicable. Failure to notify in time can convert the absence to unpaid leave.
Pay during sick leave
Sick leave is paid at the ordinary rate of pay as defined in the Act — broadly, basic monthly wage divided by the number of working days in the month, including fixed contractual allowances that form part of the wage. Variable elements such as overtime, performance bonuses, and one-off allowances are excluded from the calculation.
For hospitalisation sick leave, the employer also generally bears responsibility for the medical consultation under company-doctor arrangements where the panel system applies; outpatient consultations are reimbursable per company policy at minimum, with the day’s wage paid at the ordinary rate.
Coverage after the 2023 amendments
Effective 1 January 2023, the Employment Act applies to all employees regardless of monthly wage for most of its core protections, with a salary threshold of RM4,000 per month retained for certain provisions (notably overtime calculations and termination benefits). For section 60F sick leave, the protection extends to employees regardless of wage, meaning:
- Higher-paid managerial and executive staff are now covered by the section 60F minimum.
- Contracts that gave only contractual sick leave to RM4,000+ earners must now meet at least the statutory floor.
- The 14/18/22 scale and 60-day pool apply uniformly.
This is a meaningful change from the pre-2023 position, where sick leave for higher earners was largely contractual.
Employer obligations
Malaysian employers under the Employment Act have five core obligations on sick leave:
- Provide the section 60F entitlement at the correct tier for the employee’s length of service.
- Pay sick leave at the ordinary rate of pay, including fixed contractual allowances.
- Accept valid medical certificates from any registered practitioner, dentist, or panel doctor.
- Track outpatient and hospitalisation absences separately so the 60-day inclusive cap is enforced correctly.
- Keep leave records as required by the Act and the Employees’ Provident Fund / SOCSO contribution records.
Employers operating in both Peninsular Malaysia and the East Malaysian states should note that Sabah and Sarawak have their own Labour Ordinances with structurally similar but separately enforced sick leave rules.
Common pitfalls
Malaysian employers — particularly multinationals operating across ASEAN — fall into the same five traps:
1. Treating the 60 days as additive
Section 60F is clear: the 60-day hospitalisation figure is inclusive of the outpatient pool. Handbooks that describe the entitlement as “14 + 60 = 74 days” or “22 + 60 = 82 days” overstate the ceiling.
2. Rejecting government clinic certificates
Klinik kesihatan and panel-external GP certificates are valid under section 60F. Rejecting them on procedural grounds is a frequent dispute.
3. Using basic salary alone for the daily rate
The ordinary rate of pay includes fixed contractual allowances. Paying sick leave on basic alone underpays the employee, and the gap is the kind of finding that emerges in JTKSM (Department of Labour) audits.
4. Ignoring the 2023 expansion
Some employers continue to treat their RM4,000+ workforce as outside section 60F. Since 2023, the section applies regardless of wage. Blanket “managerial staff get only contractual sick leave” policies need updating.
5. Forgetting the tier increase at 2 and 5 years
The outpatient pool jumps from 14 to 18 at two years’ service, and from 18 to 22 at five years. Payroll systems that don’t auto-increment the entitlement at the right service anniversary leave employees short.
For broader context on Malaysian leave entitlements, see our overview of annual leave in Malaysia and the main types of leave employers manage.
Frequently asked questions
How many days of sick leave do Malaysian employees get?
Under section 60F, 14 days in years 1–2, 18 days in years 3–4, and 22 days from year 5 onward, plus up to 60 days of hospitalisation leave per year. The hospitalisation cap is inclusive of the outpatient pool.
Are managerial staff covered after the 2023 amendments?
Yes. The 1 January 2023 amendments extended section 60F sick leave protection to employees regardless of monthly wage. Higher earners are now covered by the same statutory floor as other employees.
What counts as hospitalisation leave?
Inpatient hospital admission, day surgery requiring observation, recuperation certified by a registered practitioner after inpatient treatment, and government-ordered quarantine. Outpatient “rest at home” certificates do not draw from the hospitalisation pool.
Can an employer require a panel doctor?
An employer may maintain a panel of doctors and require panel certificates for certain absences, but a certificate from any registered medical practitioner is generally valid. Rejecting valid external certificates without cause is a frequent dispute.
Does sick leave get paid out on termination?
No. Unlike annual leave under section 60E, accrued unused sick leave is not paid out on termination unless the contract expressly provides for it.
What is the ordinary rate of pay for sick leave?
Basic monthly wage divided by the working days in the month, plus fixed contractual allowances that form part of the wage. Variable bonuses, overtime, and one-off allowances are excluded.
Putting it into practice
If you employ staff in Malaysia, the practical to-do list is short:
- Confirm your sick leave policy mirrors the section 60F 14/18/22 outpatient scale and the 60-day hospitalisation cap.
- Update policies for managerial and executive staff to reflect the 2023 expansion of the Act.
- Check payroll uses the ordinary rate of pay for sick leave, including fixed allowances.
- Track outpatient and hospitalisation absences separately so the inclusive cap is enforced correctly.
- Accept valid certificates from any registered practitioner, with panel-doctor referral reserved for documented cases.
A modern leave management system tracks the section 60F outpatient scale by service year, applies the 60-day inclusive hospitalisation cap automatically, and keeps the certificate trail audit-ready — so a JTKSM inspection is a five-minute export, not a forensic reconstruction.
Sources
- Employment Act 1955 (ILO Natlex) (primary source)
- Department of Labour Peninsular Malaysia (JTKSM)
- Ministry of Human Resources Malaysia
Last updated: 5 May 2026. This article is general guidance, not legal advice. For complex cases — including certificate disputes or East Malaysia (Sabah / Sarawak) variations — consult a Malaysia-qualified employment lawyer.