Published On: 09/10/2025By

Public holidays are special times for rest and celebration — but for some businesses, operations must continue. Whether it’s in retail, hospitality, or essential services, employees who work on public holidays are entitled to fair compensation under Malaysian law.

As an employer, understanding how to calculate overtime pay for work done on public holidays is crucial. Not only does it ensure compliance with the Employment Act 1955, but it also reflects your company’s commitment to fair treatment and employee satisfaction.

In this article, Pandahrms explains how to properly calculate overtime pay on public holidays in Malaysia, including clear formulas and examples to help you manage payroll accurately and effortlessly.

Overtime Pay Rules on Public Holidays in Malaysia

Under the Employment Act 1955, public holidays are gazetted holidays — meaning employees are legally entitled to paid rest days.

If employees are required to work on a public holiday, they must be paid at higher rates than normal working days. Here’s the breakdown:

✅ Double Pay (2x): For hours worked during normal working hours on a public holiday.
✅ Triple Pay (3x): For any overtime hours worked beyond the normal working hours on a public holiday.

Failing to comply with these regulations may expose employers to penalties and harm the company’s credibility.

Who Is Entitled to Overtime Pay on Public Holidays?

The Employment Act covers:

  • Employees earning RM4,000 or below per month

  • Manual workers, regardless of salary level

For employees not covered by the Act (e.g., higher-paid executives or professionals), entitlement to overtime pay depends on their employment contract or company policy.

To maintain fairness and consistency, many companies use HR software like Pandahrms to apply the correct pay rates automatically during payroll processing.

How to Calculate Overtime Pay on Public Holidays

Let’s go through the step-by-step process:

Step 1: Calculate the Hourly Rate

Formula:
Hourly rate = Monthly salary ÷ 26 days ÷ working hours per day

Example:
An employee earns RM3,000/month and works 8 hours per day.

  • Daily pay: RM3,000 ÷ 26 = RM115.38

  • Hourly pay: RM115.38 ÷ 8 = RM14.42

Step 2: Calculate the Overtime Rates for a Public Holiday

  • Normal working hours (Double Pay): RM14.42 × 2 = RM28.84/hour

  • Overtime hours (Triple Pay): RM14.42 × 3 = RM43.26/hour

Step 3: Calculate Total Pay for the Day

Example:
An employee works 12 hours on a public holiday (8 normal hours + 4 overtime hours).

  • Normal 8 hours: RM28.84 × 8 = RM230.72

  • Overtime 4 hours: RM43.26 × 4 = RM173.04

✅ Total pay for the day = RM230.72 + RM173.04 = RM403.76

Why Accurate Overtime Calculation Matters

Overtime calculation is more than just a legal requirement — it’s an important part of building employee trust and satisfaction.

When employees see that their extra efforts are fairly rewarded, it fosters a more positive work culture, improves retention, and strengthens the employer’s reputation.

However, manual overtime and payroll calculations can be time-consuming and error-prone — especially during peak business seasons with multiple shifts or large headcounts.

Simplify Overtime and Payroll with Pandahrms

With Pandahrms, employers can:

✅ Automate payroll and overtime calculations based on company policy and labor law.
✅ Integrate attendance data directly into payroll.
✅ Ensure accuracy and transparency in every payslip.
✅ Save time and reduce administrative workload.

By digitalizing your HR and payroll processes, you can focus more on business growth while ensuring compliance with Malaysia’s labor laws.

Final Thoughts

Public holiday overtime pay isn’t just about numbers — it’s about fairness and appreciation for employees who contribute even on rest days.

By applying the correct overtime rate and using a reliable system like Pandahrms, you ensure both compliance and employee satisfaction.