Hospitalisation Leave in Malaysia: What Employers & Employees Must Know
It’s a busy week at the office. One of your staff has just been admitted to the hospital and messages HR saying they’ll need extended time off. HR scrambles to check: How many sick leave days have they taken this year? Does hospitalisation leave apply? Should this be deducted from annual leave or MC? Without a clear system, confusion builds, payroll calculations get delayed, and employees may feel unfairly treated.
This is a common situation in Malaysian workplaces—and it highlights why understanding hospitalisation leave is so important. With Pandahrms, HR teams don’t need to second-guess. The system automatically calculates entitlements, tracks overlaps with sick leave, and syncs with payroll—making compliance and employee welfare much easier to manage.
What Is Hospitalisation Leave in Malaysia?
Hospitalisation leave is a type of paid medical leave provided to employees who are admitted to the hospital due to illness, accident, or surgery. It exists to support employees during extended illnesses that require more than the standard sick leave allocation.
According to the Employment Act 1955, employees are entitled to up to 60 days of hospitalisation leave per year. However, this entitlement includes ordinary sick leave.
Sick Leave vs Hospitalisation Leave: What’s the Difference?
It’s easy to get confused between sick leave and hospitalisation leave. Here’s a simple way to understand it:
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Sick Leave (MC Leave): Short-term absences certified by a doctor.
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Hospitalisation Leave: Granted when the employee is admitted to a hospital, or the doctor certifies that their condition requires hospitalisation—even if the treatment is outpatient.
Sick Leave Entitlements Under Employment Act:
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Less than 2 years of service → 14 days/year
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2 to 5 years of service → 18 days/year
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More than 5 years of service → 22 days/year
Hospitalisation Leave Entitlement:
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Up to 60 days/year (inclusive of sick leave above).
Example:
If an employee already used 14 days of sick leave and is later hospitalised, they still have up to 60 hospitalisation days available (subject to certification that hospitalisation is necessary). Their ordinary sick leave and hospitalisation leave no longer offset each other.
What Counts as Hospitalisation Leave?
Hospitalisation leave applies when:
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An employee is admitted to a hospital for medical treatment.
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A doctor certifies that the illness or injury requires hospitalisation.
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In some cases, outpatient procedures that require close medical observation may also qualify, provided the doctor certifies it.
It’s important for HR to ensure the MC or hospitalisation certificate clearly states the need for hospitalisation.
Common HR Challenges with Hospitalisation Leave
Even with clear entitlements, employers often face practical issues:
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Tracking overlaps with sick leave – Hospitalisation leave is not “extra” on top of sick leave; it’s inclusive. Manual calculations often lead to errors.
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Payroll miscalculations – Failing to deduct correctly can result in overpaying or underpaying staff.
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Incomplete records – Paper-based MCs and hospitalisation slips are easily misplaced.
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Employee disputes – Staff may feel their entitlements are unfairly reduced if records are unclear.
How Pandahrms Helps Manage Hospitalisation Leave
With Pandahrms Leave Management System, hospitalisation leave management becomes simple, accurate, and transparent:
✅ Digital submission – Employees can upload their hospitalisation MC or certificate directly via the Pandahrms mobile app (Employee Self Service).
✅ Automatic entitlement calculation – The system calculates sick leave and hospitalisation leave inclusively, following Malaysian labour law.
✅ Payroll integration – Approved hospitalisation leave syncs with payroll for accurate salary adjustments.
✅ Transparent records – Employees can check their remaining sick leave and hospitalisation leave anytime, avoiding confusion.
✅ Customisable policies – Companies offering additional hospitalisation benefits can easily configure them in Pandahrms.
By automating the process, Pandahrms reduces HR workload, eliminates calculation errors, and ensures compliance with the Employment Act 1955.
Why Proper Management of Hospitalisation Leave Matters
Hospitalisation leave isn’t just about compliance—it’s about supporting employees when they need it most. By handling it fairly and transparently, employers build trust, reduce disputes, and maintain a smoother payroll process.
For HR, the key is ensuring that entitlements are tracked correctly, overlaps with sick leave are handled seamlessly, and records are well-kept for audits or internal reviews.
Final Thoughts
Hospitalisation leave in Malaysia provides employees with crucial protection during extended medical absences. But for HR, mismanaging entitlements can cause payroll errors, compliance issues, and unnecessary disputes.
With Pandahrms HR Software, you don’t have to worry. From digital MC submissions to automatic entitlement calculations and payroll integration, Pandahrms ensures your company remains compliant while employees feel cared for.
