Labour Day Malaysia: Do You Really Know Your Employee Rights? (Most Don’t!)

Labour Day in Malaysia, celebrated on May 1st, is a tribute to the hardworking employees who drive the nation’s economy. But do you really know your employee rights in Malaysia? Many workers are unaware of the Employment Act 1955, which outlines key protections, including overtime pay, minimum wages, annual leave, and workplace rights.

 

As of April 2025, several updates have been made to Malaysia’s labour laws. In this guide, we break down your Labour Day rights in Malaysia—so you can stand up for fair treatment and benefits!

 

1. Labour Day in Malaysia: Why It Matters

Labour Day is more than just a public holiday; it symbolizes the fight for fair wages, reasonable working hours, and better employee benefits. It is a reminder for both employers and employees to ensure compliance with Malaysian labour laws.

 

2. Employee Rights in Malaysia: What You Must Know (Updated for 2025)

The Employment Act 1955 serves as the main law governing employee rights in Peninsular Malaysia and Labuan. Here are the key rights every worker should know:

 

a) Minimum Wage in Malaysia (2025 Update)

As of February 1, 2025, the minimum wage in Malaysia has been increased to RM1,700 per month for most workers. However, this may vary based on industry and location. Always check the latest updates from Kementerian Sumber Manusia (Ministry of Human Resources Malaysia).

 

b) Working Hours & Overtime Pay

• Maximum working hours: 45 hours per week (as per the 2022 amendment)

• Overtime pay: 1.5x hourly rate on regular days, 2x on rest days, and 3x on public holidays

• Employees cannot be forced to work beyond legal limits

 

c) Annual & Medical Leave

• Annual leave: Minimum 8 to 16 days per year (based on service years)

• Sick leave: Minimum 14 to 22 days per year (with a medical certificate)

• Maternity leave: 98 days of paid maternity leave (for female employees)

• Paternity leave: 7 days of paid leave for married male employees (for the first five births)

 

d) Employment Termination & Retrenchment Benefits

• Employers must give notice before termination

• Employees with 12 months of service or more are entitled to retrenchment benefits, which include:
  - 10 days' wages per year for service less than 2 years
  - 15 days' wages per year for service between 2 to 5 years
  - 20 days' wages per year for service over 5 years

Unfair dismissal? You can file a case with the Industrial Court of Malaysia

 

3. Are Employers Following Labour Laws? How to Report Violations

If you suspect your employer is violating Malaysian labour laws, here’s what you can do:

• Report to the Department of Labour (JTKM) – File a complaint online or visit the nearest Jabatan Tenaga Kerja (JTK) office

• Lodge a complaint with SOCSO (PERKESO) if your employer is not making social security contributions

• Seek legal advice from the Industrial Court of Malaysia for wrongful termination

• Check the Ministry of Human Resources website for updated employee rights: www.mohr.gov.my

 

4. Common Employee Rights Myths Debunked!

🚫 “Employers can deduct salary anytime.” ✖ FALSE 

 Salary deductions must follow strict labour laws.

 

🚫 “Probationary employees have no rights.” ✖ FALSE 

 Probationers are protected under the Employment Act.

 

🚫 “Overtime pay is optional.” ✖ FALSE 

 Employers must pay overtime for eligible workers.

 

5. Celebrate Labour Day by Knowing Your Rights!

Labour Day is not just about a day off—it’s a day to reflect on workers’ rights and fair employment practices in Malaysia. Understanding your legal protections ensures you receive fair wages, benefits, and work conditions. If you believe your rights are being violated, don’t stay silent—take action today!

 

Stay informed. Stay protected. Happy Labour Day, Malaysia! 

 

Looking for new career opportunities? Check out our latest job openings here: Job listings
Need hiring support? Connect with Reeracoen Malaysia today!

 

 

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Reference links:

https://theedgemalaysia.com/node/742927

https://linksinternational.com/annual-leave-in-malaysia/

https://www.swingvy.com/blog-my/maternity-and-paternity-leave-in-malaysia

https://quickhr.my/resources/blog/paternity-leave-malaysia

https://jtksm.mohr.gov.my/en/frequently-asked-questions/employees-retrenchment

https://jtksm.mohr.gov.my/en/services/labour-complaint/acts-guidelines

www.hasil.gov.my

www.mohr.gov.my