Benefits and Rewards

BENEFITS AND REWARDS
PREVIEW
 The reasons why employers offer benefits to
employees.
 The statutorily required benefits.
 Some common non-statutory benefits.
 The various methods of rewarding employees.
WHY PROVIDE
BENEFITS?
Benefits can:
 Help attract staff to join the organization
 Help retain existing employees
 Increase morale of employees, which may lead to
higher productivity
STATUTORY BENEFITS
 Maternity leave
 Sick leave
 Annual leave
 Paid public holidays
 Contribution to Employees Provident Fund
 Purchase of insurance policy
Maternity leave
All female employees, those within the scope of the

Employment Act and also those who are not covered
by the Act are entitled to the maternity benefits as
provided for in the Act
Maternity leave
Every time an employee gives birth, she is entitled to
60 days maternity leave (calendar days). There is no
limit on the number of times an employee is entitled
to take maternity leave.
 If an employee gives birth before 22 weeks of
pregnancy, she is not entitled to maternity leave, even
if her baby should survive. She will be entitled to sick
leave if a doctor certifies her not fit for work.
Maternity leave
Employees on maternity leave are entitled to be paid
their normal monthly wages providing:
 1. They have worked with the employer for at least 90
days and
2. They have no more than 5 children If an employee
has given birth to her sixth child, she will only be
entitled to unpaid maternity leave.
Sick Leave
Employees within the scope of the Employment Act
are entitled to paid sick leave depending upon their
length of service with your organisation.
Employees’ entitlements to sick leave per year are:
1. If the employee has less than 2 years’ service: 14 days
2. If the employee has more than 2 years’ service but
less than 5: 18 days
3. If the employee has more than 5 years’ service: 22
days
Sick Leave
An employee who is certified unfit for work by a
doctor but who has taken all of his sick leave
entitlement must be given unpaid leave.
To be entitled to paid sick leave, an employee must
inform the employer within 48 hours of taking sick
leave and submit a medical certificate (MC) from a
registered medical doctor upon his return to work. If
he does not submit an MC, he can be considered
absent without leave and disciplinary action should be
taken against him or her.
Sick Leave
Introduce and enforce a clear policy on who is to be
informed when an employee is sick. Decide whether
he is required to speak by telephone to a company
officer or whether he is permitted to send an e-mail or
telephone message.
Public Holidays
The Employment Act states that employees are
entitled to a minimum of 11 paid public holidays each
year. Five public holidays are compulsory.
These are:
1. Workers’ Day
2. Independence Day
3. Malaysia Day
4. Agong’s Birthday
5. State Ruler’s Birthday
Annual Leave
Employees within the scope of the Employment Act are
entitled to annual leave after they have completed one
year of service.
The entitlement is as follows:
1. Employees with 1-2 years’ service: 8 days leave
2. Employees with more than 2 but less than 5 years’
service: 12 days leave
3. Employees with more than 5 years’ service: 16 days
leave
Annual Leave
Many disciplinary issues result from employees going
on leave without getting permission. Do not allow
such a practice. If any employee goes on leave before
approval has been issued, take disciplinary action on
this matter.
At the same time, encourage managers to approve
employees’ application for leave as long as the worker’s
absence will not cause a major problem.
Contribution to Employees Provident Fund
Currently, the Employees’ Provident Fund (EPF)
contributions made by employers on a monthly basis
are 12% of an employee’s salary, except for those
earning less than RM5,000 whereby the contribution
is 13%. Many employers pay a higher rate of
contribution per month. Most employees today value
this extra money in their EPF accounts. Additional EPF
contributions can be tied to employee loyalty. This
means that the longer an employee stays with the
company, the higher his EPF contribution.

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BENEFITS AND REWARDS

All female employees, those within the scope of the

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