Amendments to the Employment Act (Starting January 1st, 2023)
This is the latest change by the government and it will take effect starting on 1st of January, 2023. These are the major changes:
- Maternity leaves have been increased to 98 days
- Paternity leaves have been increased to 7 days
- Hospitalization leave to no longer be deducted after sick leave has been taken
- Overtime pay is only given to employees that have a salary of RM4000 and below
- Working hours have been reduced from 48 hours to 45 hours
Disclaimer:
Most of the information here were extracted from Malaysia HR Forum. All credits go to them and if you wish to get a copy of the pdf, it is available at the bottom of the page. We have extracted those that are important but do go through the pdf as it covers various scenarios (especially the FAQs) and it is really informative.
If you have questions/enquiries that the information below did not cover, please contact JTK for more information as they are the most reliable source.
Our system will be updated on 1st of September so if you are reading this before 1st of January, the changes that you apply in the system will not take effect yet.
Maternity leaves
Maternity leaves have increased to 98 days
To make this change in Kakitangan.com, go to leave settings and edit Maternity leave:
At "Enable custom entitlement", select yes:
Setup Maternity leave this way:
Paternity leaves
Paternity leaves have been increased from 3 days to 7 days. This will only be given to those employees who have fulfilled 12 months of service.
To make this change in Kakitangan.com, go to leave settings and edit Paternity leave:
At "Enable custom entitlement", select yes:
Setup Paternity leave this way:
This would mean that those that have worked less than 12 months will not be entitled to any Paternity leaves and those that have worked more than 12 months will be entitled.
After that remember to click save!
Sick & hospitalization leaves
Hospitalization leaves will be independent of sick leaves now, which means, when sick leaves are taken, hospitalization leaves will no longer be deducted. This is the latest entitlement:
These are the different scenarios that you may encounter:
If you wish to update an employee's hospitalization leaves and give it back to them (maxinum of 14 days), you may go to "users" page and go to "Batch Update Employees"
Download the template:
In the file, fill in only 2 information, which are email address of the employee and HL taken, the rest can be empty. For HL taken, you may key in 0 because it will change the hospitalization days taken to 0 and essentially giving back the 14 days to hospitalization leaves.
After you have key in these 2 information, save it as CSV and upload it back into the page that you downloaded the file:
Overtime
Overtime pay has been extended to those that are earning below RM4000 (it used to be RM2000). If they are earning more than RM4000, they will not be entitled for it.
If you would like to implement the RM4000 capping, go to payroll settings and put RM4000 at Monthly salary:
The different information that you may find helpful:
Reduction of working hours
Maximum working hours reduced from 48 hours to 45 hours:
The different scenarios or questions that you may have:
Hope that this has been helpful!
Reference: