Malaysia’s Prime Minister, Anwar Ibrahim, has announced an additional public holiday for Hari Raya Aidilfitri 2026 to allow Malaysians more time to celebrate with their families and travel back to their hometowns.

The announcement was welcomed by the Ministry of Human Resources Malaysia, which has also encouraged employers to adopt flexible leave arrangements to support employees during the festive period.

For HR teams, payroll administrators, and SME employers, this means preparing for possible adjustments to the public holiday schedule and employee entitlements.

This article explains the Hari Raya 2026 holiday scenarios, employer obligations, and payroll rules under Malaysian labour law.

Why the Government Declared an Extra Hari Raya Holiday

The additional holiday was introduced to help Malaysians celebrate Hari Raya Aidilfitri more comfortably with their families.

According to the government, the extra day aims to:

• Allow employees more time to travel to their hometowns

• Improve work-life balance during the festive period

• Encourage family and community celebrations

The additional holiday will be declared under the provisions of the Holidays Act 1951.

The Human Resources Ministry also emphasised that the additional public holiday will apply to private sector employees, subject to the provisions under the Employment Act 1955.

Hari Raya 2026 Public Holiday Scenarios

Because Hari Raya is determined by the Islamic lunar calendar, the exact date will only be confirmed after the official moon sighting.

The government has therefore prepared two possible public holiday scenarios.

Scenario 1: Hari Raya Falls on Friday (20 March 2026)

If Hari Raya begins on Friday, 20 March 2026, the holiday schedule will likely be:

• 20 March (Friday): Hari Raya Aidilfitri – Day 1

• 21 March (Saturday): Hari Raya Aidilfitri – Day 2

• 22 March (Sunday): Rest Day

• 23 March (Monday): Additional declared public holiday

This would create a four-day festive break for many employees.

Scenario 2: Hari Raya Falls on Saturday (21 March 2026)

If Hari Raya begins on Saturday, 21 March 2026, the arrangement will be slightly different:

• 20 March (Friday): Additional declared public holiday

• 21 March (Saturday): Hari Raya Aidilfitri – Day 1

• 22 March (Sunday): Hari Raya Aidilfitri – Day 2 / Rest Day

• 23 March (Monday): Replacement public holiday

This ensures employees still receive their full public holiday entitlement.

Employer Obligations Under Malaysian Labour Law

The Human Resources Ministry reminded employers that the declared day will be treated as a public holiday applicable to private sector employees.

Employers must therefore comply with public holiday provisions under Section 60D of the Employment Act 1955.

Key requirements include:

✔ The declared day must be treated as a paid public holiday
✔ Employers must inform employees clearly about holiday arrangements
✔ If the holiday is substituted with another day, employees must be notified in advance
✔ If employees are required to work, statutory public holiday pay rules apply

Clear communication helps prevent confusion, especially for shift-based or operational teams.

Public Holiday Pay Rules for Employees Who Work

If employees are required to work during a gazetted public holiday, Malaysian labour law requires employers to provide additional compensation.

Public Holiday Work Pay

Employees working on a public holiday are entitled to:

2 × Ordinary Rate of Pay (ORP)

This applies even if the employee works within their normal working hours.

Overtime on Public Holiday

If employees work beyond their normal working hours, overtime must be paid at:

3 × Hourly Rate of Pay (HRP)

These rules are particularly relevant for industries such as:

• Manufacturing

• Retail

• Hospitality and F&B

• Logistics and operations-based businesses

HR and payroll teams must ensure accurate calculations to remain compliant.

Can Employers Substitute the Public Holiday?

Yes.

Under the Employment Act, employers may replace the declared public holiday with another day, provided that:

• Employees are informed in advance

• The substituted day is clearly recorded

• Payroll records reflect the adjustment

This flexibility allows businesses to maintain operational continuity during peak periods.

HR Planning Tips for the Hari Raya Holiday Period

Festive periods often create workforce management challenges for employers.

Common issues HR teams face include:

• Multiple employees requesting leave simultaneously

• Managing shift coverage

• Tracking public holiday attendance

• Calculating public holiday and overtime pay correctly

Without proper systems, manual payroll processing during festive periods can increase the risk of compliance errors and payroll disputes.

An integrated HR system can help automate attendance tracking, overtime calculations, and payroll processing during peak holiday periods.

FAQ: Hari Raya 2026 Public Holiday for Employers

Why is there an extra Hari Raya public holiday in 2026?

The additional holiday was announced by the Malaysian government to give employees more time to travel and celebrate Hari Raya with their families.

It is declared under the provisions of the Holidays Act 1951.

Does the extra public holiday apply to private sector employees?

Yes.

The Human Resources Ministry confirmed that the declared day will be treated as a public holiday applicable to private sector employees, subject to the Employment Act 1955.

Can employers replace the additional public holiday with another day?

Yes.

Employers may substitute the declared holiday with another paid holiday, provided employees are clearly informed of the arrangement.

What happens if employees work on the additional public holiday?

Employees who work on a gazetted public holiday must be paid according to statutory rules:

• 2× ordinary pay for normal working hours

• 3× hourly pay for overtime

Should employers allow flexible leave during Hari Raya?

The Human Resources Ministry has encouraged employers to consider flexible leave arrangements as part of progressive employment practices that support work-life balance.

However, this remains subject to business needs and company policies.