Unpaid Leave Calculation in Malaysia
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In Malaysia, unpaid leave is one of the aspects of employment that enables employees to be given a break from work while not being required to pay for the time they are away from work. Both the employer and the employee should have a clear understanding of how unpaid leave operates to avoid causing unfairness or a violation of employment laws. This article will help you understand what unpaid leave is, who is entitled to it, and how to determine the number of days allowed in Malaysia.
What is Unpaid Leave?
Unpaid leave means being away from work and not receiving any form of remuneration for the time one is away from work. It is usually provided to an employee when he or she has no more paid leaves available like annual or sick leaves or where circumstances require its provision. Unpaid leave is not something that employees are entitled to, but it is usually a mutual agreement between the employer and the employee.
There are several uses of unpaid leave such as personal problems, family issues, health complications that may warrant an extended sick leave, or even for professional development. However, since it is an issue that determines both the salary and benefits, the employees should be careful and consider the following effects when taking unpaid leave.
Who is Eligible for Unpaid Leave?
Eligibility for unpaid leave in Malaysia is not standardized by law, which means that it largely depends on the employer’s policies and the terms in the employment contract. Employers typically have the discretion to grant unpaid leave on a case-by-case basis, especially if the reasons are valid and justified.
However, certain groups of employees may be eligible for unpaid leave under specific circumstances:
- Employees on medical leave: Once all paid sick leave has been used, employees may take unpaid medical leave.
- Maternity or parental leave extensions: Employees who require additional time off beyond their statutory maternity or paternity leave may request unpaid leave.
- Personal or family emergencies: Employers may allow unpaid leave for urgent personal matters or family responsibilities.
Employees need to refer to their employment contract or speak with their HR department to understand the specific policies in place.
How to Calculate Unpaid Leave in Malaysia?
The calculation of unpaid leave in Malaysia is straightforward. When an employee takes unpaid leave, their salary is reduced based on the number of days they are absent. The formula typically used for calculating unpaid leave is as follows:
Daily Salary Deduction = (Monthly Basic Salary / Number of Working Days in the Month) x Number of Unpaid Leave Days
Let’s look at some examples to understand how this works better.
Example 1
An employee with a monthly basic salary of RM3,000 takes 2 days of unpaid leave in a month with 22 working days. The calculation would be:
Daily Salary Deduction = RM3,000 / 22 = RM136.36
Total Deduction = RM136.36 x 2 days = RM272.73
The employee's salary for that month would be RM3,000 - RM272.73 = RM2,727.27.
Example 2
An employee earning RM4,500 a month takes 1 day of unpaid leave in a month with 20 working days. The calculation would be:
Daily Salary Deduction = RM4,500 / 20 = RM225
Total Deduction = RM225 x 1 day = RM225
The employee's salary for that month would be RM4,500 - RM225 = RM4,275.
Example 3
An employee with a salary of RM2,200 per month takes 3 days of unpaid leave in a month with 21 working days. The calculation would be:
Daily Salary Deduction = RM2,200 / 21 = RM104.76
Total Deduction = RM104.76 x 3 days = RM314.28
The employee’s salary for that month would be RM2,200 - RM314.28 = RM1,885.72.
Unpaid leave provides employees with the flexibility to manage personal or professional needs, but it comes with a financial impact. Understanding the eligibility and calculations can help both employees and employers ensure clarity and fairness in the process.
Frequently Asked Questions on Unpaid Leave in Malaysia
1. Can employers refuse unpaid leave?
Yes, employers have the discretion to approve or reject unpaid leave requests. It is not an automatic entitlement unless specified in the employment contract.
2. Will unpaid leave affect my benefits?
Unpaid leave may impact benefits like annual leave, bonuses, and EPF contributions, depending on company policy. It is advisable to check with HR on the implications.
3. Is unpaid leave included in the calculation of EPF contributions? Generally, the days taken as unpaid leave are not included in the calculation for EPF contributions as the employee is not receiving any salary for those days.
4. Can I take unpaid leave for study purposes?
It depends on your employer’s policies. Some employers may allow unpaid leave for study or professional development, but this should be agreed upon in advance.
5. How do I request unpaid leave?
Submit a formal request in writing to your employer, explaining the reason for the leave and the dates you wish to take. Make sure to check your company’s policies before making the request.
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