Prime Minister Anwar Ibrahim has officially declared Monday, 15 September 2025 as a special public holiday in conjunction with Malaysia Day. While employees may celebrate the long weekend, HR and business owners—especially those operating 365 days a year—must now ensure full compliance with labor law and payroll obligations.
Is This a Compulsory Public Holiday?
Legal Reference: Public Holidays Act & Employment Act 1955
Under Section 60D(1)(a) of the Employment Act 1955:
“Every employee shall be entitled to 11 paid public holidays in a calendar year, to be determined by the employer.”
These 11 must include:
-
National Day
-
Yang di-Pertuan Agong’s Birthday
-
Labour Day
-
Malaysia Day
-
Ruler or Governor’s Birthday (state level)
Does the 15 Sept Public Holiday Count as the 12th?
Yes. The 15 September 2025 public holiday, declared under Section 8 of the Holidays Act 1951, is an additional paid holiday.
Even if you’ve already selected your 11 public holidays for the year, this must still be granted. So in 2025, employers must give 12 paid public holidays total (11 selected + 1 declared).
According to a report by The Star on July 23, 2025, Human Resources Minister Steven Sim has also confirmed that employers are legally required to observe the 15 Sept holiday. He stated:
-
Employers must either give employees the day off with regular pay,
-
Or pay public holiday rates if they are required to work,
-
Or offer a paid replacement leave.
This enforcement is in accordance with Section 60D(1) of the Employment Act 1955, the Sabah Labour Ordinance, the Sarawak Labour Ordinance, and the Holidays Act 1951.
He also highlighted that this long weekend (13–16 September) promotes worker wellness, strengthens family bonds, and supports the local economy through domestic tourism.
(Source: Bosses must observe Sept 15 holiday or offer compensation, says HR Minister – The Star)
What If Your Company Operates 365 Days a Year?
If you’re in industries like F&B, retail, logistics, healthcare, or security — where operations cannot stop — here’s what to remember:
-
You’re still required to observe the public holiday under law
-
If your employees are scheduled to work:
-
You must pay the correct public holiday rate
-
Or offer a replacement leave (subject to contract or agreement)
-
-
Failing to do so may result in labour disputes or penalties
How Pandahrms Keeps You Compliant
Pandahrms offers full flexibility to manage ad-hoc declared holidays like 15 Sept:
-
Manual Holiday Entry
Admins can easily add declared public holidays and apply them by branch, region, or department. -
Shift & Roster Support
For companies operating 365 days, Pandahrms allows custom rules for shift workers and public holiday logic. -
Payroll Compliance
Calculate public holiday pay, OT, and leave replacement options in line with your company policy and Employment Act. -
Leave Adjustment
If leave was already applied on 15 Sept, Pandahrms will help adjust the leave balance accordingly. -
Staff Communication
Use the announcement feature to notify your team instantly.
📌 HR Action Checklist
✅ Add 15 Sept as public holiday in Pandahrms
✅ Review affected shift rosters and payroll rules
✅ Apply double pay or assign replacement leave
✅ Adjust leave balances if leave was applied on that day
✅ Communicate the update clearly to staff
This announcement reinforces why HR teams need flexible systems that can adapt to changes in law. With Pandahrms, you stay compliant, organised, and in control—no matter what’s announced next.
