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Key Milestones of the Employment (Amendment) Act 2022

The revised Employment Act 1955 came into force across Peninsular Malaysia and Labuan, broadening statutory worker protections to all employees regardless of salary cap, with specific provisions for overtime pay:

Crucial Statutory Changes Every SME Must Adopt

• 45-Hour Maximum Work Week: Standard working hours were reduced from 48 to 45 hours per week. Any time worked in excess constitutes mandatory overtime.
• 98 Days Paid Maternity Leave: Female employees are entitled to 98 consecutive days of paid maternity leave (increased from 60 days).
• 7 Days Paid Paternity Leave: Married male employees who have served for at least 12 continuous months are entitled to 7 consecutive days of paid paternity leave for up to 5 confinements.
• Flexible Working Arrangements (FWA): Employees have the legal right to apply in writing for flexible working hours or remote work arrangements, and employers must respond in writing within 60 days.

Overtime Calculation Formula

The standard Ordinary Rate of Pay (ORP) formula: Daily Rate = Monthly Basic / 26 days; Hourly Rate = Daily Rate / Normal Working Hours. Overtime on normal days is payable at 1.5x, rest days at 2.0x, and public holidays at 3.0x.