Malaysia studies post-maternity leave allowance as maternity leave complaints decline

Malaysia is studying the introduction of a post-maternity leave allowance for working mothers, as the government reports a decline in complaints following the implementation of the country’s 98-day statutory maternity leave.

Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan told Parliament that the Human Resources Ministry is examining a proposal to provide eligible mothers with financial assistance after they have exhausted their maternity leave entitlement.

Under the proposal, mothers who require additional recovery time after completing their 98-day maternity leave would receive an allowance equivalent to 80% of their assumed monthly wages. The benefit would be funded through the Employment Insurance System (EIS), managed by the Social Security Organisation (SOCSO), rather than by employers. The proposal is currently being studied before any legislative amendments are introduced.

The announcement comes as the government reports improved compliance with the 98-day maternity leave policy, which came into effect in Peninsular Malaysia in January 2023 and was extended to Sabah and Sarawak in May 2025.

According to the Human Resources Ministry, complaints related to maternity leave and maternity allowance fell by more than 30% in 2025, declining from 67 cases in 2024 to 41 cases last year. Khairul said the reduction in complaints reflects better compliance by employers with the Employment Act 1955, following the extension of paid maternity leave from 60 to 98 days.

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However, he noted that the ministry has yet to conduct a comprehensive assessment of the policy’s impact on women’s labour force participation or wages. Official data shows that Malaysia’s female labour force participation rate stood at 56.8% in Q1 2026, compared with 56.5% during the same period a year earlier.

The proposed post-maternity leave allowance was first announced during Malaysia’s National Labour Day celebrations in May. The government estimated at the time that more than 132,000 working mothers could benefit from an additional 30 days of paid leave after maternity leave, subject to necessary amendments to existing legislation, reported The Star.

The initiative forms part of the government’s broader efforts to strengthen support for working mothers while encouraging greater workforce participation. If approved, the allowance would be administered through the Employment Insurance Fund, providing income support to eligible mothers during their post-maternity recovery period without placing the financial responsibility on employers.