On 1 May 2026, Prime Minister Datuk Seri Anwar Ibrahim announced several major workforce and social protection initiatives during the National Labour Day celebration. These measures form part of the government's broader MADANI agenda to strengthen worker welfare, improve labour participation, and modernise Malaysia's social security framework.
These initiatives reflect the government's growing focus on inclusive workforce protection and employee welfare enhancement, with significant implications for Malaysian employers.
The government announced a new Post-Maternity Leave Allowance (EPCB) under proposed amendments to the Employment Insurance System (EIS) Act 2017. Eligible insured female employees may receive financial assistance equivalent to 80% of their assumed monthly wages for up to 30 additional days after completing their existing 98-day maternity leave, on a one-off basis. The initiative is expected to benefit more than 132,000 women workers nationwide.
Based on the announcement, employers are not expected to directly pay salaries for the additional 30 days. The assistance is expected to be funded under the EIS/PERKESO framework. However, companies may still face indirect operational impacts:
Key Takeaway: The EPCB initiative strengthens support for working mothers without officially extending statutory maternity leave or directly increasing employer salary obligations.
The government announced plans to expand PERKESO protection to Malaysians working overseas, beginning with Malaysia–Singapore cross-border workers. The move will be implemented through amendments to the Self-Employment Social Security Act 2017 and aims to strengthen protection for Malaysians exposed to commuting and overseas employment risks. This is particularly relevant for the estimated 480,000 Malaysians travelling daily between Johor and Singapore for work.
Key Takeaway: There is presently no confirmed additional employer PERKESO cost. Nevertheless, companies with cross-border operations or overseas assignments should monitor future legislative amendments closely. HR and payroll teams should track compliance requirements as they are released.
Source: Ministry of Human Resources, Malaysia (KESUMA)
