Cuti Awal Muharram 2026 Malaysia: Is It a Public Holiday in All States? Employee Entitlements & Pay Rules

Awal Muharram 2026 (Maal Hijrah) falls on Wednesday, 17 June 2026. As a gazetted public holiday observed throughout Malaysia, employers should ensure payroll calculations, attendance records, leave management, and employee communications are handled correctly.

Whether your business closes for the holiday or continues operations, understanding public holiday entitlements can help reduce payroll errors and compliance risks.

When Is Awal Muharram 2026 in Malaysia?

Date: Wednesday, 17 June 2026

Awal Muharram marks the beginning of the Islamic New Year and is observed nationwide across Malaysia.

Is Awal Muharram a Public Holiday in Every State?

Yes. Awal Muharram 2026 is a public holiday observed in all Malaysian states and federal territories, including:

Johor
Kedah
Kelantan
Melaka
Negeri Sembilan
Pahang
Penang
Perak
Perlis
Sabah
Sarawak
Selangor
Terengganu
Kuala Lumpur
Putrajaya
Labuan

This means employers across Malaysia should include Awal Muharram in their 2026 public holiday planning and payroll schedule.

Public Holiday Pay Rates Under the Employment Act 1955

If employees are required to work on Awal Muharram, employers must apply the appropriate public holiday pay rates.

Employees Working Normal Hours on a Public Holiday

Employees who work during their normal working hours on a public holiday are generally entitled to:

Their normal daily wage; and
Additional public holiday compensation as required under the Employment Act 1955.

Employers should ensure their payroll calculations comply with current legislation and company policies.

Overtime on a Public Holiday

If an employee works beyond normal working hours on a public holiday, overtime rates applicable to public holidays should be applied.

This is one of the most common payroll compliance issues faced by employers, particularly in industries that operate during public holidays.

Example Public Holiday Pay Calculation

Example Scenario

Employee monthly salary: RM3,000

Daily rate calculation:

RM3,000 ÷ 26 days = RM115.38

If the employee works on Awal Muharram during normal working hours:

Daily wage = RM115.38
Public holiday payment = According to Employment Act requirements

Employers should verify the final amount using their payroll system and applicable statutory formulas.

Need Help Calculating Employee Pay?

To simplify payroll calculations, employers can use:

These tools can help estimate payroll costs and employee deductions more accurately.

Public Holiday Rules for Shift Workers

For businesses operating on shifts, such as:

Manufacturing
Retail
F&B
Hospitality
Logistics
Healthcare

Employers should ensure employees working during Awal Muharram receive the correct public holiday entitlement based on their scheduled shifts.

Shift schedules should be reviewed in advance to avoid payroll disputes and roster conflicts.

What Happens If an Employee Is on Leave During Awal Muharram?

If Awal Muharram falls during:

Annual leave

Managing employee leave during public holidays?

Try Annual Leave Calculator to calculate leave entitlement, track leave balances, and plan employee leave more effectively throughout the year.

Sick leave
Hospitalisation leave
Other approved leave

The public holiday should not be deducted from the employee's leave entitlement.

Employers should ensure leave records are adjusted accordingly to avoid unnecessary employee grievances.

Public Holiday Entitlement for Part-Time Employees

Part-time employees covered under the Employment (Part-Time Employees) Regulations 2010 may also be entitled to public holiday benefits based on their employment arrangements.

Employers should review employment contracts and applicable regulations when calculating public holiday entitlements for part-time staff.

Employer Compliance Checklist for Awal Muharram 2026

Area	Action Required
Payroll	Apply the correct public holiday pay rates
Attendance	Mark Awal Muharram as a public holiday
Leave Management	Do not deduct annual leave for the public holiday
Shift Workers	Review and confirm employee rosters
Employee Communication	Inform staff of operating arrangements
Documentation	Maintain payroll and attendance records
HR Policies	Ensure holiday policies are up to date

Common Employer Mistakes During Public Holidays

Applying Incorrect Pay Rates

Public holiday pay rates differ from normal overtime rates. Employers should verify payroll calculations before processing salaries.

Deducting Annual Leave

A public holiday should not reduce an employee's annual leave entitlement.

Poor Documentation

Employers should maintain records of:

Attendance
Overtime
Public holiday work
Leave adjustments

Good documentation helps reduce disputes and supports compliance.

Failing to Communicate Holiday Arrangements

Employees should be informed in advance whether the business will remain open during Awal Muharram and whether they are required to work.

FAQ

Is Awal Muharram 2026 a public holiday in Malaysia?

Yes. Awal Muharram 2026 falls on Wednesday, 17 June 2026 and is observed nationwide across all Malaysian states and federal territories.

Can employers require employees to work on Awal Muharram?

Yes. Employers may require employees to work based on operational needs, provided the appropriate public holiday entitlements are given in accordance with applicable employment laws.

What if Awal Muharram falls on an employee's rest day?

Employers should refer to the Employment Act 1955 and company policies regarding replacement holidays and public holiday entitlements.

Do foreign workers receive public holiday benefits?

Yes. Employees covered under the Employment Act 1955 are generally entitled to the same public holiday benefits regardless of nationality.

What happens if an employer does not comply with public holiday requirements?

Employers who fail to comply with employment legislation relating to public holidays may be subject to enforcement action and penalties under the Employment Act 1955.

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