Maternity Leave for Private Sector Employees in Malaysia: 60 Days or 90 Days?

HR practitioners all over Malaysia have been wondering about the implementation of 90 days maternity leave for private sector in Malaysia. It is hot subject and some speculate that employers can be investigated and prosecuted if they dismiss staff who are taking 90 days maternity leave.

According to a report, employers are “encouraged” to implement 90 days maternity leave but they can still maintain 60 days. Employees are unable to sue because Employment Act 1955 still has not been amended yet. Currently, there’s no timeline as to when the Employment Act 1955 will be amended.

An NST report said private sector employer can be investigated and prosecuted if they dismiss female staff taking 90 days maternity leave. But according to the Malaysian Employers Federation (MEF), private corporations cannot be punished if they do not provide 90 days’ maternity leave as there is currently no legislation requiring it.

Budget 2018

The increment from 60 days to 90 days for maternity leave in private sector, announced by then Prime Minister, Datuk Seri Najib Tun Razak during the Budget 2018 presentation was to be implemented in two phases:

First phase was to encourage employer to provide 90 days maternity to female workers in the private sector. During this period, JTKSM will hold session to gain insights and feedback from stakeholders.

The second phase was supposed to be continued though amendments to the provisions of Section 37 of the Employment Act 1955, Section 83 of the Labor Ordinance (Sabah Chapter 67) and Section 84 of the Labor Ordinance (Sarawak chapter 76) to require mandatory 90 days of maternity leave. However, the second phase did not go through, as of now.

Since there is no amendment to the provisions of Section 37 of the Employment Act 1955, the maternity period days for private sector employees will remain at 60 days:

“37. (1) (a) Every female employee shall be entitled to maternity leave for a period of not less than sixty consecutive days (also referred to in this Part as the eligible period) in respect of each confinement and, subject to this Part, she shall be entitled to receive from her employer a maternity allowance to be calculated or prescribed as provided in subsection (2) in respect of the eligible period.”

11th Malaysia Plan

Based on the 11th Malaysia Plan on 18th October 2018, in Priority B: Improving Labour Workforce and Productivity, under the initiative to increase female participation in the labour force, the government is planning to make amendments to the Employment Act 1955 and increase the minimum maternity leave from 60 to 90 days in the private sector.

According to The Malay Mail, Human Resources Minister M. Kula Segaran said the amendments to the Employment Act 1955 are expected to be tabled in Parliament in March 2019. He said the public could expect major amendments to the Act which was last amended in 2013.

Here are some relevant articles:

CIMB Grants Six Months Paid Maternity Leave for First-Time Mothers

11th Malaysia Plan: Everything HR Must Know​

HR Guide: Procedure and Templates for Leave Administration

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