Published On: 22/01/2026By

In 2026, Thaipusam and Federal Territory Day both fall on 1 February (Sunday).
This overlap has raised practical questions for employers and HR teams across Malaysia:

  • Do employees get two public holidays?

  • Is the employer required to provide two replacement days?

  • What if the day falls on a rest day or non-working day?

  • What does the Employment Act 1955 actually require?

This guide explains the legal position clearly—so employers can apply the rules correctly, avoid disputes, and stay compliant.

Understanding the Two Public Holidays

What Is Thaipusam?

Thaipusam is a Hindu religious festival and is not a nationwide public holiday. It applies only in states and territories where it is officially gazetted.

States and territories observing Thaipusam include:

  • Selangor

  • Penang

  • Perak

  • Negeri Sembilan

  • Johor

  • Kedah

  • Kuala Lumpur (FT)

  • Putrajaya (FT)

Employees are entitled to Thaipusam only if they work in these locations.

What Is Federal Territory Day?

Federal Territory Day is observed on 1 February each year to commemorate the establishment of Malaysia’s Federal Territories.

It applies only to employees working in:

  • Kuala Lumpur

  • Putrajaya

  • Labuan

Employees outside these areas are not entitled to this public holiday.

Why the 2026 Overlap Matters for Employers

When both holidays fall on the same calendar day, HR teams must avoid common mistakes, such as:

  • Assuming employees are entitled to two holidays

  • Automatically granting two replacement days

  • Applying a blanket rule across different work locations

Public holiday entitlement in Malaysia is location-specific and calendar-based, not cumulative.

Public Holiday Entitlement Under the Employment Act 1955

Under Section 60D(1) of the Employment Act 1955, employees are entitled to 11 paid public holidays per year, consisting of:

  • 5 compulsory public holidays, and

  • 6 additional public holidays chosen by the employer

The Act also states:

If a public holiday falls on a rest day, the next working day must be given as a paid public holiday in substitution.

Crucially, the law looks at the calendar day, not how many public holidays happen to fall on that date.

When Two Public Holidays Fall on the Same Day

When Thaipusam and Federal Territory Day fall on the same date:

  • The law treats this as one calendar day

  • The employee is entitled to one public holiday only

  • There is no statutory requirement to grant two replacement holidays

In short:
👉 Overlapping public holidays do not double the entitlement.

If the Overlapping Holidays Fall on a Rest Day

Because 1 February 2026 is a Sunday, it will be a rest day for many employees.

In this situation:

  • The employee is considered to have missed one public holiday

  • The employer must provide:

    • One replacement paid public holiday on the next working day

Providing one replacement day fully satisfies the employer’s legal obligation under the Employment Act 1955.

What If the Employee Works on That Day?

If an employee is required to work on 1 February 2026, Section 60D(3) applies.

The employer must:

  • Pay public holiday wages at the prescribed rate, or

  • Grant a replacement day, depending on wage structure and contract terms

Even in this scenario, the entitlement is still for one public holiday only, not two.

Is Replacing Both Public Holidays Mandatory?

No.

Under Malaysian labour law:

  • Employers are required to replace one public holiday only

  • Granting an extra day off is:

    • A company benefit, not

    • A statutory obligation

Best Practices for Employers & HR Teams

To prevent confusion and employee disputes, employers should:

  • Clearly state which public holiday is being substituted

  • Update the company holiday calendar early

  • Apply rules consistently across departments

  • Check employment contracts or collective agreements for enhanced benefits

  • Communicate decisions transparently to employees

Using a centralised HR system like Pandahrms helps employers manage public holidays accurately across different states, work locations, and employee groups—without manual tracking errors.

Frequently Asked Questions (FAQ)

1. Do employers need to replace both holidays if they fall on the same day?

No. The Employment Act 1955 requires only one replacement public holiday.

2. If the overlapping holidays fall on a rest day, what must the employer do?

The employer must grant one replacement public holiday on the next working day.

3. What if the employee works on that day?

Public holiday pay rules apply, but the entitlement is still limited to one public holiday.

4. Are employees entitled to both Thaipusam and Federal Territory Day?

Only if both holidays apply to their work location. Federal Territory Day applies only in KL, Putrajaya, and Labuan.

5. Can employers give an extra replacement day?

Yes—but it is optional and considered a company benefit, not a legal requirement.

Final Takeaway for Employers

For 1 February 2026, when Thaipusam and Federal Territory Day fall on the same day:

  • The law recognises one public holiday

  • Only one replacement day is required if it falls on a rest day

  • Any additional day off is discretionary, not mandatory

Understanding this distinction helps employers stay compliant, manage expectations, and avoid unnecessary operational or legal risks.