Total cost of medical leave RM5 billion

by | Mar 2, 2023 | Business, HUMAN RESOURCES, NATIONAL, NEWS | 0 comments

There is confirmation of what has been suspected all along that Malaysians are an unhealthy people because sick workers cost employers an estimated RM5 billion last year alone, according to the Malaysian Employers Federation (MEF).

The MEF stated that this estimate is based on the total cost involved for wages of employees on sick leave, outpatient clinical costs and replacement costs for employees on sick leave based on overtime payment.

The MEF stated that sick leave is costly to businesses and will hinder companies from reaching their full potential and this is why employers need to establish policies and educate employees on the consequences of taking sick leave.

The MEF added that preventive measures such as investing in proper sanitation at the workplace, offering free vaccination and supporting workplace wellness programs and having recreation facilities are important.

The consequences for workers who take excessive sick leave should be clearly stated by sick leave policies and it must be communicated to workers who use more sick leave than allotted which may result in their dismissal.

The MEF also stated that incentives for not taking sick leave must also be given such as giving recognition to those with minimum sick leave or rewarding them with a payment that would equal the unused sick days.