Public holidays provide employees with much-needed rest and time with family, but there are times when businesses—especially those in essential services, retail, hospitality, or logistics—require staff to work.
When this happens, employers must manage it carefully to stay compliant with Malaysia’s Employment Act 1955. Fair pay, replacement leave, and transparent policies are not just legal obligations—they also build employee trust, reduce disputes, and foster a healthier workplace culture.
This guide explains everything HR and employers need to know about managing employees who work on public holidays in Malaysia.
Types of Public Holidays in Malaysia
Under the Employment Act 1955, all employees are entitled to at least 11 paid public holidays per year.
1. Compulsory Nationwide Holidays
These must be observed by every employer in Malaysia:
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New Year’s Day (1 January)
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National Day (31 August)
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Labour Day (1 May)
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Malaysia Day (16 September)
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Yang di-Pertuan Agong’s Birthday
2. Optional/Gazetted Holidays
Employers must choose the remaining holidays from the official gazetted list, such as:
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Chinese New Year (2 days, except certain states)
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Hari Raya Aidilfitri (2 days)
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Hari Raya Haji (1 day)
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Deepavali (except Sarawak)
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Christmas Day (25 December)
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Thaipusam, Wesak Day, Awal Muharram, Maulidur Rasul
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State holidays (e.g., Sultan’s Birthday, state anniversaries)
📌 HR Responsibility: Employers must confirm and publish the company’s official 11 public holidays at the start of each year so employees are clear on their entitlements.
Are Employees Allowed to Work on Public Holidays?
Yes—employees can be required to work on public holidays when business needs demand it. However:
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The employment contract or HR policy must state when and how employees may be asked to work.
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Compensation must follow the Employment Act.
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For non-essential industries, employers are encouraged to discuss and obtain employee consent.
Pay Rules for Working on Public Holidays
Payment depends on whether the public holiday falls on a normal working day, rest day, or non-working day:
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Holiday on a normal working day
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Employees are entitled to their holiday pay plus one extra day’s wages.
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Overtime beyond normal hours must be paid at 3× the hourly rate.
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Holiday on a rest day (e.g., Sunday for most workers)
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The following working day becomes the replacement holiday.
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Any work performed must still be paid at holiday rates (2× wages + 3× overtime).
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Holiday on a non-working day (e.g., Saturday in a 5-day workweek)
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Employees are entitled to one extra day’s wages or a replacement holiday.
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Overtime rules apply if they work extra hours.
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Employer’s Responsibility
When staff work on a public holiday, employers must provide either:
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Double pay → At least 2× the ordinary daily wage, in addition to normal holiday pay.
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OR a replacement holiday/annual leave, if agreed with the employee.
On top of this, overtime beyond normal hours must always be paid at 3× the hourly rate.
Pay Calculation Examples
Example 1: Monthly salaried employee (RM3,000/month)
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Daily rate = RM3,000 ÷ 26 = RM115.38
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Holiday work pay = RM115.38 × 2 = RM230.76
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Overtime pay = RM115.38 ÷ 8 × 3 × hours worked
Example 2: Daily-rated employee (RM100/day)
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Holiday pay = RM100 (holiday entitlement) + RM200 (double pay for working)
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Total = RM300
📌 HR Note: Employers must use a consistent wage calculation method (e.g., dividing monthly salary by 26 or 22 working days) and document it clearly.
Replacement Leave Rules
Instead of paying higher rates, employers may:
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Provide a replacement paid holiday, or
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Grant an additional day of annual leave.
Special cases, such as when two public holidays fall on the same date (e.g., Malaysia Day overlapping with Maulidur Rasul), require employers to provide a replacement for the optional holiday.
Checklist for HR: Managing Public Holiday Work
✅ Publish a holiday calendar for the year in advance
✅ Confirm which optional holidays are observed
✅ Plan shifts for holiday coverage fairly
✅ Offer replacement leave or time-off in lieu if applicable
✅ Apply correct wage multipliers (2× for work, 3× for overtime)
✅ Communicate clearly when “cuti peristiwa” (special holidays) are declared
✅ Keep detailed records of hours worked & payments made
✅ Review policies regularly to ensure compliance with EA 1955
How HR Software Can Help Employers Stay Compliant
Managing public holiday entitlements, overtime rates, and replacement leave manually is time-consuming and error-prone.
With Pandahrms HR & Payroll Software, employers can:
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Automate double/triple pay calculations for holiday work
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Track replacement holidays and leave balances accurately
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Sync attendance, payroll, and leave in one platform
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Stay fully compliant with the Employment Act 1955
📌 Why it matters: HR teams reduce disputes, improve employee trust, and avoid costly compliance mistakes—all while saving hours of manual work.
Final Takeaway
Public holiday compliance is not optional—it’s a legal obligation under Malaysian labour law. Employers must ensure:
✔ Correct double/triple pay for holiday work
✔ Replacement leave where required
✔ Transparent policies to avoid disputes
By using Pandahrms, HR teams can manage public holidays with ease, automate payroll accuracy, and focus on building a fair and motivated workplace.
