Public holidays are a key part of Malaysian employment law, and ensuring compliance is essential for both employers and HR teams. Under Section 60D of the Employment Act 1955, employees are entitled to a certain number of paid public holidays each year — including several that are mandatory.
This guide covers the basics every employer should know, including mandatory holidays, payment rules, replacement days, and how absences affect entitlement.
Mandatory Public Holidays in Malaysia
Employees are entitled to 11 gazetted public holidays annually. From these, 5 holidays are compulsory and must be granted as paid public holidays:
- National Day
- Yang di-Pertuan Agong’s Birthday
- State Ruler’s Birthday / Yang di-Pertua Negeri’s Birthday / Federal Territory Day
- Workers’ Day
- Malaysia Day
These days must be observed and paid at the employee’s Ordinary Rate of Pay (ORP).
Additional Public Holidays Declared by the Government
The Act requires employers to recognise any holiday declared by the Minister under Section 8 of the Holidays Act 1951.
For example, 15 September 2025 was declared an additional public holiday by the Prime Minister, and therefore must be treated as a paid holiday for all eligible employees.
Employers may choose to:
- Observe and grant the holiday ✅
- Require employees to work and pay applicable holiday rates ✅
- Provide a replacement day off ✅
When a Public Holiday Falls on a Rest Day
If any public holiday falls on an employee’s rest day, the next working day automatically becomes the replacement paid holiday.
This ensures employees do not lose their entitlement simply because the holiday overlaps with their scheduled rest.
Absence Before or After a Public Holiday
If an employee is absent immediately before or immediately after a public holiday — or two or more consecutive public holidays — without employer approval or a reasonable excuse:
❌ They are not entitled to holiday pay for those holidays.
This provision encourages attendance and ensures fairness in holiday compensation.
Conclusion
Understanding Malaysia’s public holiday rules helps HR teams maintain compliance and avoid payroll errors. Observing mandatory holidays, applying the correct payment rates, and managing replacement days appropriately are all essential parts of Malaysian labour law.
For employers, staying updated with annual announcements and additional public holiday declarations ensures smoother operations and correct payroll management throughout the year.
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