Employers balk at funding paternity leave

The Malaysian Employers’ Federation (MEF) says a proposal for businesses to pay for a new national paternity leave scheme would cost them up to MYR 52.4 million (US$12.6 million) per day.

It is urging the HR Ministry to instead fund the initiative through existing social insurance programmes.

MEF executive director Datuk Shamsuddin Bardan said the leave could be enabled through the Social Security Organisation or the Employment Insurance Scheme, both of which employees make compulsory contributions to.

The proposal offers new fathers paid paternity leave of up to three days, with employers welcome to offer increased terms beyond this statutory minimum – civil servants already have access to seven days’ paternity leave.

The proposal is currently being considered by the national cabinet.