Managing employee schedules around public holidays is a key responsibility for HR and employers in Malaysia. Public holidays not only affect workforce allocation but also payroll calculations, overtime pay, and leave planning.
This guide helps Malaysian employers understand the official public holidays, their impact on HR processes, and how to plan effectively with the right tools.
What Are Public Holidays In Malaysia?
In Malaysia, public holidays are governed by the Holidays Act 1951. They fall into two categories:
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National Holidays – observed across the whole country (e.g., Merdeka Day, Hari Raya, Chinese New Year).
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State Holidays – observed only in specific states (e.g., Thaipusam in Selangor, Awal Ramadan in Johor).
Employers must comply with the minimum entitlement under the Employment Act 1955, which grants employees at least 11 paid public holidays per year.
List Of Malaysia Public Holidays (2026 Example)
Here’s a sample list of the national-level holidays for 2026 (state holidays will vary):
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1 Jan (Thu) – New Year’s Day
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18–19 Feb (Wed–Thu) – Chinese New Year
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20 Mar (Fri) – Awal Ramadan (selected states)
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3 Apr (Fri) – Hari Raya Aidilfitri
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4 Apr (Sat) – Hari Raya Aidilfitri (2nd Day)
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1 May (Fri) – Labour Day
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31 Aug (Mon) – Merdeka Day
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16 Sep (Wed) – Malaysia Day
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20 Sep (Sun) – Deepavali* (*date subject to confirmation)
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25 Dec (Fri) – Christmas Day
📌 Note: Employers should always cross-check with the official government gazette as dates (especially Islamic holidays) may change.
Why HR Needs To Plan Around Public Holidays
Public holidays have a direct impact on both operations and payroll compliance:
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Payroll Calculations – If a holiday falls on a working day, employees are entitled to paid leave. If they work, they must be paid extra (holiday rates) under the Employment Act.
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Leave Management – Many employees plan annual leave around long weekends. HR should anticipate peak requests.
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Workforce Allocation – Production-heavy industries need to adjust shifts to avoid downtime during extended breaks.
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Compliance – Failure to observe paid public holidays can lead to labour disputes and penalties.
Best Practices For Employers
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Publish a Holiday Calendar Early
Share the official list with employees at the start of the year to avoid confusion. -
Plan Overtime & Shifts in Advance
For essential industries (retail, manufacturing, healthcare), arrange rosters early to ensure coverage. -
Automate Payroll Calculations
Public holiday pay and overtime rates can get complicated. Using an HR system ensures accuracy and compliance. -
Anticipate Leave Surges
Popular dates (long weekends, festive seasons) often lead to mass leave applications. Have a clear approval policy.
How Pandahrms Helps With Public Holiday Management
Manually tracking holidays, leave requests, and payroll adjustments can be overwhelming. With Pandahrms, employers can:
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Automate holiday pay calculations (including overtime rates).
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Manage leave requests digitally with a transparent approval flow.
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Generate payroll reports that automatically factor in holidays.
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Provide employees with a self-service portal to check holiday entitlements and balances anytime.
This not only saves HR time but also ensures your company remains compliant with Malaysian labour law.
Key Takeaway For Employers
Public holidays in Malaysia are more than just days off — they affect payroll, compliance, and workforce planning. Employers who proactively manage holiday calendars reduce payroll errors, improve employee satisfaction, and avoid compliance issues.
By leveraging HR software like Pandahrms, companies can handle holiday-related payroll and leave seamlessly, keeping operations smooth throughout the year.
FAQs
1. How many public holidays are employees entitled to in Malaysia?
Employees are entitled to a minimum of 11 paid public holidays each year under the Employment Act 1955. Out of these, 5 are compulsory nationwide holidays, while the remaining 6 may be chosen by the employer.
2. Can employers replace a public holiday with another day?
Yes. Employers may substitute a public holiday with another day, but employees must be informed in advance. This is usually stated in the company’s employment contract or handbook.
3. What is the pay rate if employees work on a public holiday?
Employees who work on a public holiday are entitled to their normal wages + double pay for the day. If overtime is involved, the rate increases to triple the hourly wage.
4. Are state public holidays compulsory for all employees?
No. State holidays only apply to employees working in that specific state. Employers outside the state are not legally required to observe them.
5. What happens if a public holiday falls on a rest day or weekend?
If a public holiday falls on a rest day or non-working day, the next working day will automatically be treated as the replacement holiday.
6. Do foreign workers get the same public holiday benefits?
Yes. Foreign employees are entitled to the same public holiday benefits as local employees, including paid leave or overtime pay if required to work.
