If you’ve ever looked at your payslip and wondered how much leave you should be getting, whether your overtime was paid correctly, or where part of your salary goes every month, we’ve got the answers. These rates and rules below apply to every private-sector employee in Malaysia.
The Current Minimum Wage
Your basic salary must be at least RM1,700 per month. That is the minimum wage. This has applied to all employers nationwide since 1 August 2025.
The minimum wage applies to your basic salary. Your employer cannot lump in allowances, bonuses, commissions, or overtime to make the total add up to RM1,700. So if your basic pay is RM1,500 and you get a RM200 transport allowance on top, your employer is not meeting the minimum wage.
The rule applies to all private-sector workers, including foreign workers and part-timers. The only people not covered are domestic workers (such as live-in helpers, gardeners, and personal drivers) and apprentices on formal training contracts.
If you’re paid daily, your minimum rate depends on your schedule: RM65.38 per day for a six-day week, or RM78.46 for a five-day week. Hourly workers must get at least RM8.72 per hour. Employers who do not pay the minimum wage can be fined up to RM10,000 per worker under the National Wages Consultative Council Act 2011.
How Much Paid Leave You Get
Your first year at a job comes with at least 8 days of paid annual leave; the longer you stay with the same employer, the more annual leave you are entitled to. Under Section 60E of the Employment Act 1955:
Even if your employment contract states that you have fewer leave days, the law overrides it. And if you resign or get let go, your employer has to either let you use up your remaining leave or pay you for it.
You are also entitled to at least one rest day per week, a minimum of 11 paid public holidays per year, 98 consecutive days of maternity leave, and 7 consecutive days of paternity leave (for legally married fathers, for up to five births).
Sick Leave Is Not Annual Leave
If you fall sick, you get paid sick leave. It’s as simple as that. You do not need to use your annual leave to cover time off for illness. The number of sick days you’re entitled to in a year depends on your length of service, under Section 60F of the Employment Act:
If you need to be hospitalised, you are entitled to up to 60 days of paid hospitalisation leave per year. Since the 2023 amendment to the Employment Act, this is separate from your regular sick leave.
Unlike annual leave, sick leave is not prorated. Even if you only started work with a company in June, you get the full 14 days for the calendar year. You will need an MC from a registered doctor, government clinic, or your company’s panel clinic, and you have to let your employer know of your illness and your unavailability for work within 48 hours of falling sick.
How Overtime Is Calculated
The law caps your working time at 8 hours a day or 45 hours a week. Any hours worked more than that is classified as overtime. Your total time worked in a single day cannot be more than 12 hours.
The higher the day’s significance, the higher the rate. Overtime on a normal weekday pays 1.5 times your hourly rate. On a public holiday, that jumps to 3 times. So if you are asked to stay late on Hari Raya or Chinese New Year, you should be earning significantly more than a regular work day.
What Your Employer Pays Into EPF And SOCSO
If your take-home pay looks lower than your basic salary, that is because of mandatory deductions. The biggest is EPF (Employees Provident Fund), where both you and your employer contribute a percentage of your wages every month.
EPF is your retirement savings. Both you and your employer put money into your EPF account every month, and it stays there until you retire or withdraw it for specific purposes like buying a home. Your employer puts in 13% of your wages if you earn RM5,000 or below, and 12% if you earn more. You contribute 11%, which gets deducted from your salary. That money goes into three accounts: Akaun Persaraan (75%), Akaun Sejahtera (15%), and Akaun Fleksibel (10%).
SOCSO (Social Security Organisation, also known as PERKESO) is your protection if you get injured at work, during your commute, or become permanently disabled.
EIS (Employment Insurance System) pays you a temporary allowance if you lose your job, and helps with job search and retraining. Both you and your employer contribute 0.2% each.
If you want to check whether your employer is actually making these payments, you can log in to i-Akaun for EPF, or call SOCSO at 1300-22-8000.
What To Do If You Are Not Getting Your Full Entitlements
Your payslip should show your basic salary, any overtime, and your EPF, SOCSO, and EIS deductions. If any of the figures on your payslip looks wrong, or if a deduction is missing entirely, that is your first sign that something is off.
Check that your basic pay is at least RM1,700 before allowances, that your EPF and SOCSO deductions match the right percentages, and that any overtime was paid at the correct rate.
If something looks off, raise it with your manager or HR department first. Keep a copy of your payslips, your employment contract, and any records of hours you have worked.
If your employer does not fix it, you can file a complaint with the Department of Labour (Jabatan Tenaga Kerja Semenanjung Malaysia, or JTKSM). You can walk into your nearest Labour Office (branch addresses at jtksm.mohr.gov.my), call the hotline at 03-8000 8000, email jtksm@mohr.gov.my, or submit a complaint online through the Ministry of Human Resources’ public complaints system (SISPAA). Under Section 69 of the Employment Act, you can take monetary claims to the Labour Court for unpaid wages, overtime, or leave pay.
Note: This article is based on the Employment Act 1955, which covers Peninsular Malaysia. If you work in Sabah or Sarawak, your rights fall under different laws (the Sabah Labour Ordinance or Sarawak Labour Ordinance), and some details differ.
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