In Malaysia, local domestic employees hired to work in a private household are treated differently from business employees under the Employment Act 1955 (“EA”).
Malaysia’s main labour law leaves many of the usual protections and benefits up to the terms of the employment contract, and for those looking to employ workers for their home, our guide briefly looks at:
- what the EA requires for domestic employees
- what it does not cover, and
- why the employment contract is particularly important in this context
Note: Our guide only covers local domestic employees and does not apply to foreign domestic workers who are subject to a separate work permit framework.
Who counts as a domestic employee
Under the EA, a domestic employee is as follows:
Common positions that fall under this definition include:
- personal drivers
- cooks
- gardeners
- nannies
- housekeepers
- valets
- security, and
- grooms
The definition is based on the nature of the work performed, and so a driver who also runs errands for the family’s business may not fit neatly within this definition, for example.
How the EA treats domestic employees
Domestic employees fall under a specific part of the EA 1955 and are excluded from most of the statutory protections given to conventional employees.
| Employment Act 1955 | Applies to Domestic Employees? |
| Termination notice, 14 days by default (s.57) | ✓ Applies (can be varied by contract) |
| Termination without notice for misconduct (s.57) | ✓ Applies |
| One rest day a week (s.59) | ✓ Applies |
| No work on rest day (s.60) | ✗ Not required |
| Annual leave (s.60E) | ✗ Not required |
| Sick / medical leave (s.60F) | ✗ Not required |
| Hours of work and overtime (s.60A) | ✗ Not required |
| Public holidays (s.60D) | ✗ Not required |
| Paternity leave (s.60F) | ✗ Not required |
| Maternity protection (Part IX) | ✗ Not required |
| Termination, lay off and retirement benefits (Part XIIA) | ✗ Not required |
| Minimum wage | ✗ Not required (Minimum Wage Order does not apply to domestic servant) |
| EPF (KWSP) contributions | ✗ Generally not required, unless the employer is a business entity or elects to voluntarily contribute for the employee |
Despite the many crosses above, none of this stops an employer from offering more. Employers are free to give domestic employees the same benefits as any other staff member, and many do.
The point is that these benefits only exist if they are written down.
The same logic applies to termination. The right to end the contract without notice for misconduct already exists under the law, but it helps to spell out what counts as misconduct in the contract itself, so there’s no argument about it later.
Statutory contributions
Even though most of the Employment Act doesn’t apply, two statutory schemes still do:
- SOCSO and the Employment Insurance System (EIS) have been mandatory for domestic employees since 1 June 2021. Registration and contributions with PERKESO are compulsory regardless of what the contract says. Check current registration steps and rates.
- EPF contributions are generally not mandatory for domestic employees, unless the employer falls under specific exceptions in the EPF Act. Confirm your position and any voluntary contribution options.
We cover this topic in more detail in our employer’s guide to contracts of service In Malaysia.
Let ELP draft your domestic employment contract
Because so few of the Employment Act’s default protections apply to domestic employees, the contract carries most of the legal weight. If you are hiring someone for your private household, we can help draft and review your domestic employment contracts, covering duties, benefits, and termination terms. Contact us for an initial consultation.
