This article covers the main indicators that affect employees' happiness in higher learning institutions. Scientific research has demonstrated that employees' happiness significantly contributes to the productivity and success of an organization. Motivated by the importance of strengthening positive emotions among employees through better culture, policy, standard operating procedure (SOP), and infrastructure in an organization, this study examined the factors that influence employees' happiness in Malaysian institutions of higher learning (IHL). The study adopted the PERMAIg model of happiness as it is the most suitable framework to be used in the Malaysian context. Data were obtained from respondents from private and public IHLs in Malaysia using a quantitative survey method (n = 291) throughout a cross-sectional period of time, i.e., from January to March 2021. The result shows all five (5) of the key domains positively influenced employees' happiness. They are employees' emotion management, engagement, achievement, infrastructure, and gratitude. The findings show that the key factors affecting employees' happiness in Malaysian IHLs include their relationships with family members, support from colleagues, student achievement, health, a safe work environment, and a sense of gratitude towards their job. Meanwhile, the causes of unhappiness are mainly related to the work process, a lack of recognition, and superiors' dishonest behaviour. Subsequent qualitative analysis has enabled the study to produce three (3) recommendations to enhance employees' happiness in the Malaysian IHLs, which are: (i) every work process and procedure, such as the claim process, teaching and learning process, and administrative procedures, must be helping the employees and not burdening them; (ii) it is imperative to implement a clear understanding of each process and procedure's purpose; and (iii) improve infrastructure, particularly the cafeteria, recreational facility, computer maintenance, and toilets. This gives stakeholders the information they may use to plan for future advancements and comprehend the current situation affecting the employees' happiness. For comparative analysis purposes and to determine best practises for boosting