Malaysia Annual Leave Calculator

Calculate statutory annual leave entitlement, completed continuous service tiers, Section 60E(1B) termination-year proration, and payment in lieu for employees across Peninsular Malaysia, Sabah (Act A1753), and Sarawak.

Governing Legislation:Employment Act 1955
Statutory Minimum Tiers:8, 12, or 16 days / year
Termination Rule:Section 60E(1B) Fraction Rounding
Review Date: October 25, 2026

Leave Calculation Inputs

Quick Scenario Presets:

Governed by Employment Act 1955 Section 60E. Statutory minimums apply to all private sector employees.

Under Employment Act Section 60E(2), exceeding 10% unauthorized absence triggers statutory forfeiture of annual leave for that period.

Leave Entitlement Summary

Statutory Entitled
Estimated Remaining Available Annual Leave
9 Days
Full annual entitlement tier based on 2 year(s) of continuous service.
Continuous Service
2 yrs, 7 mos
Statutory Minimum Tier
12 days / yr
Annual Entitlement
12 days
Leave Utilized / Taken
3 days
Statutory Step-by-Step Breakdown
Continuous Service & Statutory Entitlement Tier12 days / year
Statutory Tier Determination
Employee has completed 2 full year(s) and 7 month(s) of continuous service (2 years or more but less than 5 years).
Available Balance Computation9 day(s)
12 + 0 - 3
Entitled days (12) + Carried forward (0) - Taken (3)
Section 60E(3A) Payment in Lieu Guidance:
For active employment, annual leave must be granted and taken no later than 12 months after the end of each continuous service period. Payment in lieu during continuing employment is prohibited unless on contract termination.

How Statutory Annual Leave Works in Malaysia

Annual leave in Malaysia is governed primarily by Section 60E of the Employment Act 1955, as well as the amended Labour Ordinances of Sabah and Sarawak.

1. Statutory Minimum Tiers

Under Section 60E(1): 8 days for <2 years service; 12 days for 2 to <5 years service; and 16 days for ≥5 years service. Higher contract amounts always prevail over the statutory floor.

2. Section 60E(1B) Proration

Upon contract termination, leave is prorated by completed months: (Months ÷ 12) × Entitlement. Any fraction <0.50 day is disregarded; any fraction ≥0.50 day is deemed 1 full day.

3. Section 60E(3A) Payment in Lieu

When an employer terminates employment before an employee has taken all accrued leave, the employer is legally obligated to pay ordinary rate of pay in lieu of the untaken leave days.

4. Absence Forfeiture Rule

Under Section 60E(2), unapproved and unjustified absence exceeding 10% of working days during the 12-month period results in total statutory forfeiture of annual leave for that period.

Verified Official Legal Sources

Every statutory formula, rounding rule, and continuous service boundary in this calculator is verified directly against active Malaysian legislation.

Employment Act 1955 (Act 265)
Official JTKSM publication of the Employment Act 1955, including Section 60E statutory annual leave entitlements and termination proration.
Read Official Act 265 Text
Sabah Labour Ordinance (Act A1753)
Official Labour Ordinance of Sabah (Amendment) Act 2025 gazette aligning Sabah annual leave tiers effective May 1, 2025.
Read Sabah Gazette
Sarawak Labour Department Guidance
Official Sarawak Labour Department guidelines and FAQs regarding annual leave entitlement and statutory rights in Sarawak.
View Sarawak Labour FAQ
Malaysia.gov.my Employee Rights
Official Malaysian Government Portal career guidelines detailing statutory leave entitlements, public holidays, and employment rights.
View Government Portal Guide

Frequently Asked Questions

Answers to common practical questions regarding Malaysian annual leave accrual, proration, and payment in lieu.

Under Section 60E(1) of the Employment Act 1955 (and corresponding Sabah and Sarawak Labour Ordinances), qualifying employees are entitled to: (1) 8 days per year for less than 2 years of continuous service; (2) 12 days per year for 2 years or more but less than 5 years; and (3) 16 days per year for 5 years of continuous service or more.