Unpaid Leave Deduction (Malaysia)
Updated November 2026 · Free · No sign-up
Calculate unpaid leave deductions under Malaysian practice — the EA’s ÷26 ORP divisor vs calendar-day proration, and why the method changes your payslip by real ringgit.
Quick answer: Standard Malaysian practice deducts unpaid leave at ORP: monthly salary ÷ 26 per day. RM3,900 → RM150/day deducted. Some employers use calendar-day proration (÷ days in month) for incomplete months — the EA’s incomplete-month formula — so know which applies to which situation.
The Methods and When Each Applies
| Method | RM3,900, 3 days | Where it’s used |
|---|---|---|
| ÷26 (ORP) | RM450 | The EA’s "day’s wages" divisor — unpaid leave, OT base, leave payouts |
| ÷30 or actual calendar days | RM390 | Incomplete-month salary (joiners/leavers): (salary ÷ days in month) × days employed |
| ÷22 working days | RM532 | Contractual only — the harshest; must be agreed |
The EA distinction: incomplete months (joining/leaving mid-month) statutorily use calendar-day proration; a day’s wages (unpaid leave, deductions) conventionally uses ÷26. Mixed-up payrolls over-deduct — audit yours.
Lawful Deduction Rules
Employers may deduct unpaid leave actually taken; most OTHER deductions (losses, damage, advances beyond limits) need employee consent and/or DG approval, and total deductions can’t exceed 50% of monthly wages (exceptions aside). Deduction disputes → JTK.
Worked Audit
RM3,900, 3 unpaid days in a 31-day month: ÷26 deducts RM450; calendar method RM377 — the gap (RM73) is why the method clause in your contract matters. Related: the incomplete-month page handles joiner/leaver proration in the Singapore style; Malaysian joiners use calendar-day proration per the EA formula.
Frequently Asked Questions
How is unpaid leave deducted in Malaysia?
Conventionally at ORP — monthly salary ÷ 26 per day — the EA’s day’s-wages divisor; incomplete months (joiners/leavers) instead prorate by calendar days.
Can my employer use ÷22?
Only contractually — it’s the harshest divisor; absent agreement, ÷26 convention or calendar proration applies.
What is the deduction limit?
Total deductions generally can’t exceed 50% of monthly wages (final-month and some categories excepted).
How do joiner/leaver months prorate?
The EA incomplete-month formula: (monthly salary ÷ number of days in the month) × days employed — calendar-day based.
Where do I dispute wrong deductions?
The Labour Department (JTK) — wage-deduction claims are fast-tracked and records-based.
✓ Formula verified • Last updated: November 3, 2026