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Medical Leave

What is Medical Leave?

Medical leave is time off given to an employee who is unable to work because of illness, injury, medical treatment, or recovery. For employers, it matters because medical leave affects staffing, payroll, absence records, employee wellbeing, and compliance with local employment rules.

Last updated Oct 23, 2026

What does medical leave mean?

Medical leave is a type of leave used when an employee cannot work because of health-related reasons. It may be called sick leave, paid sick leave, hospitalisation leave, outpatient leave, or medical absence, depending on the country and company policy.

A medical leave policy usually explains when an employee can take leave, whether a medical certificate is required, how the leave is paid, how long the employee may be absent, and how the absence should be recorded. It should also explain what happens if the employee needs extended leave or cannot return to work as expected.

For employers, medical leave should be handled with care. The company needs enough information to manage attendance and payroll, but it should also respect employee privacy and handle health-related information properly.

Why medical leave matters for employers

Medical leave matters because illness and injury can affect staffing, deadlines, customer service, payroll, and team workload. Clear medical leave rules help managers respond consistently instead of making decisions case by case.

For businesses hiring in Southeast Asia, medical leave should be checked locally. Indonesia, the Philippines, Malaysia, Vietnam, and Thailand may differ in sick leave entitlement, medical certificate requirements, paid leave treatment, hospitalisation leave, social security support, and employer obligations.

This is especially important for remote teams. If employees are based in different countries, the employer should not rely only on informal chat messages to track medical absence. Leave requests, medical documents where required, payroll records, and manager approvals should be properly documented.

Weshine’s payroll service can support employers that need help aligning payroll records, leave data, and statutory employment items when hiring across Southeast Asia.

Medical leave in Southeast Asia

These are the general rules for sick leave set by law. Eligibility can depend on the employee's service, coverage and medical certificate.

Country

Sick leave under the law

Indonesia

Employees off sick with a doctor's note are paid in full for the first 4 months, then 75% for the next 4 months, 50% for the 4 months after that, and 25% until the employer ends the employment (Law No. 13 of 2003 on Manpower).

Philippines

The Labor Code doesn't require separate paid sick leave. Employees with at least one year of service get 5 days of paid Service Incentive Leave a year, which they can use when sick, and many employers add sick leave by policy.

Malaysia

14 days a year for under 2 years of service, 18 days for 2 to under 5 years, and 22 days for 5 years or more, plus hospitalisation leave of up to 60 days a year in total (Employment Act 1955). A medical certificate is needed, and the employee must tell the employer within 48 hours.

Vietnam

Sick pay comes from social insurance, not the employer, at 75% of the insured salary. It covers up to 30, 40 or 60 working days a year depending on contribution years, and longer for long-term illness (Law on Social Insurance 2024).

Thailand

Employees can take sick leave when they are actually sick and are paid for up to 30 working days a year. The employer may ask for a medical certificate for 3 or more working days (Labour Protection Act).

Note: This table is a general guide. Sick leave rules can depend on the employee's coverage, contract and length of service, so check the current local rules before deciding on pay.

Common mistakes employers should avoid

A common mistake is treating all health-related absence as unpaid leave. In some countries, employees may have statutory paid medical leave or other protections.

Another mistake is not setting documentation rules. Employers should explain when employees need to provide a medical certificate, who receives it, and how medical information will be stored.

Employers should also avoid applying one global sick leave policy without checking local law. A policy may be generous in one country but insufficient or unclear in another.

Note: Medical leave rules may vary by country, employee status, length of service, medical certification, hospitalisation, and local regulations. Employers should verify the latest requirements before applying a policy across multiple countries.

Disclaimer: This glossary is for general information only and should not be treated as legal, tax, payroll, or employment advice. Requirements may vary by country, role, contract type, employee classification, and current local regulations. For guidance on a specific hiring situation, seek professional advice or speak with Weshine.

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Helpful Resources for Hiring in Southeast Asia

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