Leave Management System Malaysia

Each leave type is a self-contained policy: name, entitlement formula (fixed or tenure-based), accrual cycle (annual, monthly, none), eligible employee group, approval chain, and payroll impact (paid, unpaid or partial).

You can attach company-specific rules — for example, “exam leave is only for confirmed employees enrolled in HRD-claimable courses, capped at 5 days a year, requires HOD approval, and unused balance does not carry forward.”

Standard Malaysian leave types (annual, MC, replacement, maternity, paternity, hospitalisation, compassionate, marriage, unpaid) ship pre-configured to EA1955 defaults. You only edit them if you want to be more generous.

When an employee is rostered or approved to work on a gazetted public holiday (or an off-day in lieu), Pandahrms automatically credits them with replacement leave on the same day the work is logged in Time & Attendance.

You decide the conversion rule per company — one full day of replacement leave per public holiday worked, or pro-rata for partial-day work. You also set the expiry window (most customers go with 3 months, some with 6).

Replacement leave is tracked separately from annual leave, with its own balance, its own application form, and its own report. It cannot be converted into cash on resignation by default, in line with most Malaysian company policies, but that toggle is configurable.

For annual leave, you set a carry-forward cap (e.g. up to 5 days) and an expiry date (e.g. forfeit by 31 March of the following year). Anything above the cap is automatically dropped at year-end; carry-forward balances are tagged so reports can distinguish them from current-year entitlement.

For MC, replacement leave and other types, carry-forward defaults to zero unless you change it. EA1955 doesn’t require MC carry-forward, and most companies don’t.

Year-end processing is a single click. The system shows you a preview of which employees lose how many days, so HR can pre-warn anyone about to forfeit a big balance.

When an employee resigns, Pandahrms calculates the unused annual leave balance (pro-rated to the last working day) and shows the encashment value based on the employee’s ordinary daily wage at the point of resignation. The amount flows into the final payroll run automatically.

EA1955 requires that any unused annual leave granted under section 60E must be paid out in cash on termination. Pandahrms applies this rule by default. Replacement leave, MC, hospitalisation leave and similar types are not encashable under the Act, so they’re dropped on the last day — again, configurable if your company is more generous.

The full breakdown appears on the EA Form for the resigning employee, so LHDN year-end reporting stays correct.

Pandahrms ships with the gazetted Federal calendar plus all 13 state and Wilayah Persekutuan calendars, refreshed every year as the gazette is published. Each branch or company entity is assigned a default calendar based on its registered location.

For groups with offices in multiple states, you can assign different employees to different calendars regardless of their company entity — for example, sales staff who report to KL but live and work in Selangor. The system will honour the right state holidays for the right employees.

When the Federal Government announces an ad-hoc holiday (e.g. for a major event or election), HR can add it in 30 seconds and choose which branches it applies to. Existing approved leave on that day is automatically converted, so no one loses or gains an extra day.

Different sectors have very different rest day, public holiday and leave patterns. A retail outlet might have Tuesday as the rest day for one staff group and Wednesday for another. A manufacturing plant might run rotating 12-hour shifts where “rest day” falls on a Wednesday for some teams. Hospitality runs 7 days a week with rotating off-days.

Pandahrms supports per-employee or per-group rest day patterns and shift calendars. Public holiday work, rest day work and overtime are calculated correctly based on what the employee was scheduled to do that day — not a generic Mon-Fri assumption.

This matters at year-end, because the EA Form section on rest day pay, public holiday pay and overtime totals depends on getting the underlying schedule right. We’ve audited dozens of customers’ first-year EA Forms and consistently found 2-5% wage corrections versus their previous Excel-based system.