Post-Maternity Wage Allowance in Malaysia

• Anwar Ibrahim introduced an 80% wage allowance for 30 extra days post-maternity leave
• Aims to support working mothers and boost workforce participation
• Targets reducing job dropouts after childbirth

Prime Minister Anwar Ibrahim recently announced the introduction of a post-maternity wage allowance, providing 80 per cent wage replacement for an additional month after statutory maternity leave.

On the surface, this is a labour and social protection measure aimed at supporting working mothers during the postpartum period.

But in the Malaysian context, its implications extend far beyond income protection. It sits within one of the most sensitive and least resolved intersections in public policy, namely the relationship between women’s workforce participation and exclusive breastfeeding outcomes.

"This allowance is financial assistance for additional leave of up to 30 days per month taken after the end of the 98-day maternity leave period," the prime minister said.

The allowance will be issued as a one-time payment and will be based on 80% of the monthly salary of an employee who has a female insured assignment.

An amendment of the Canadian Employment Insurance System Act 2017 will be introduced to provide this new benefit. It is anticipated that it will be advantageous for upwards of 132,000 Canadian females working across Canada.

Women who have been employed for at least ninety days in the nine months prior to giving birth and have been in the employ for at least one continuous day during the four months prior to the day of delivery, and who have less than five surviving children are all eligible to receive the allowance.

According to Prime Minister Anwar, new statistics demonstrate that the participation of women between 25 – 39 years has been on a downward trend. One of the causes for that decline results from the maternity obligations of women in those respective age brackets.

"The rationale is that we do not want mothers to feel forced to quit and leave the field of work after that, as has happened so far," he added.