Staff Working on Hari Raya Aidilfitri: How to Calculate Salary in Malaysia
During Hari Raya Aidilfitri, many businesses in Malaysia — especially F&B, retail, and service sectors — continue operating as usual.
For employers, one common challenge during this festive period is:
“How should salary be calculated if employees work on a public holiday?”
Incorrect calculations can lead to employee disputes, payroll errors, and compliance risks.
This guide explains how to calculate Hari Raya salary correctly, based on Malaysian labour law, so HR teams and employers can stay compliant.
Quick Summary: Public Holiday Pay Rules
Here’s a simple breakdown for employers:
✔ Employee not working → Paid 1 day salary (included in monthly salary)
✔ Employee working → Paid 1 day salary (included) + 2 days additional pay
✔ Overtime on public holiday → Paid at 3× hourly rate
Legal Basis: Employment Act 1955
Public holiday pay in Malaysia is governed under the Employment Act 1955, specifically Section 60D.
Under this law:
- Employees are entitled to paid public holidays
- If required to work, they must receive additional compensation
- Employers must follow the prescribed pay rates
This is why working during Hari Raya results in higher pay compared to a normal working day.
If Employee Does NOT Work on Hari Raya
If an employee is not required to work during the public holiday:
✔ They are still entitled to 1 day normal salary
✔ No salary deduction is allowed
This is considered a paid public holiday entitlement.
If Employee Works on Hari Raya
If an employee is required to work on a public holiday:
✔ 1 day salary (already included in monthly salary)
✔ 2 days salary (additional payment for working on the holiday)
Total = 3 days salary
Example Calculation
Monthly salary: RM1,800
Daily rate: RM1,800 ÷ 26 = RM69.23
If the employee works on Hari Raya:
- Holiday pay = RM69.23
- Work pay (2 days) = RM138.46
Total = RM207.69
Overtime Pay on Public Holiday
If employees work beyond normal working hours on a public holiday:
✔ Overtime must be paid at 3 times the hourly rate
Example
Hourly rate:
RM69.23 ÷ 8 = RM8.65
Overtime rate:
RM8.65 × 3 = RM25.95
If employee works 2 extra hours:
Overtime pay = RM51.90
Important Clarification for Employers
Some employers mistakenly assume that public holiday work should be paid at 2 times (double pay).
❌ This is incorrect.
✔ Correct structure:
- 1 day (holiday entitlement)
- 2 days (working pay)
👉 Total = 3 days salary
Understanding this is critical to avoid underpayment and employee complaints.
Practical Example for Business Owners
If you operate during Hari Raya (e.g. restaurant or retail):
Monthly salary: RM2,000
Daily rate: RM76.92
If employee works:
Total pay = RM76.92 × 3 = RM230.76
If employee works 3 hours overtime:
Additional overtime pay = RM86.58
Who Do These Rules Apply To?
Under the Employment Act 1955, these rules apply to:
✔ Employees earning RM4,000 and below per month
✔ Manual labour workers (regardless of salary)
In practice, many companies apply these rules to all employees for consistency and fairness.
Common Mistakes Employers Should Avoid
During festive periods, payroll errors are common. Here are key mistakes to watch out for:
❌ Paying only 2 days instead of 3 days
❌ Incorrect overtime calculation
❌ Confusing public holiday vs rest day rules
❌ Not informing employees in advance
These mistakes can lead to employee dissatisfaction and compliance risks.
HR Best Practice: Plan Payroll Early
Hari Raya is typically a high-demand business period, and payroll complexity increases.
To manage this effectively, employers should:
✔ Plan work schedules early
✔ Communicate public holiday pay clearly
✔ Ensure payroll calculations are accurate
✔ Keep proper records for compliance
Clear planning helps avoid last-minute payroll issues and disputes.
Simplify Payroll Calculations with HR Software
Manual calculation of public holiday pay and overtime can be time-consuming and error-prone.
A structured HR system helps employers:
✔ Automatically calculate public holiday pay
✔ Apply correct overtime rates
✔ Ensure compliance with Malaysian labour law
✔ Reduce payroll errors during peak periods
With Pandahrms, employers can manage payroll, attendance, and overtime in one system — ensuring accurate salary calculations even during festive seasons.
Conclusion
When employees work during Hari Raya Aidilfitri, employers must follow the correct public holiday pay rules under Malaysian law.
The key principle is simple:
✔ Working on a public holiday = 3 days salary
✔ Overtime = 3× hourly rate
By understanding these rules and applying them correctly, employers can:
- Avoid payroll mistakes
- Ensure compliance with labour law
- Maintain employee trust during festive periods
FAQs
How much should I pay if staff work on Hari Raya?
Employees must be paid 3 days salary for working on a public holiday.
Can employers give replacement leave instead of extra pay?
Yes, but only if both employer and employee agree.
How to calculate daily salary in Malaysia?
Daily rate = Monthly salary ÷ 26 working days
What is the overtime rate on a public holiday?
Overtime must be paid at 3 times the hourly rate.
