Cuti Deepavali 2025 in Malaysia Staff Entitlement and HR Guide

Deepavali, or the Festival of Lights, is one of Malaysia’s major cultural celebrations. It is also a time to manage public holiday entitlements correctly. While employees look forward to their leave, employers must ensure compliance with the Employment Act 1955 on holiday pay, replacement leave, and state-specific gazetted holidays.

How Many Days of Cuti Deepavali in Malaysia?

By law, Deepavali is a one-day public holiday in Malaysia. Employers are not required to provide more than this unless their company policy offers additional leave.

If Deepavali falls on a weekend, the replacement public holiday rule applies:

If it falls on a Sunday (and Sunday is a rest day), the following working day becomes a holiday.
If it falls on a Saturday (depending on the state or company’s rest day policy), employers should provide a replacement holiday or follow their employment contract terms.

Any additional leave surrounding Deepavali is at the discretion of the employer or provided under company benefits.

Which States Observe Deepavali as a Public Holiday?

Deepavali is gazetted as a public holiday in most states in Peninsular Malaysia, including:

Johor
Kedah
Kelantan
Kuala Lumpur (Federal Territory)
Labuan (Federal Territory)
Malacca
Negeri Sembilan
Pahang
Penang
Perak
Perlis
Putrajaya (Federal Territory)
Selangor
Terengganu

Exceptions: Sabah and Sarawak.

Deepavali is not recognised as a public holiday. Employers in these states may choose to provide additional leave at their own discretion.

Employers should always check the official state gazette each year, as holiday declarations may vary.

Employer’s Legal Obligations on Deepavali

Employers must ensure compliance with public holiday entitlements:

Employees in states where Deepavali is gazetted are legally entitled to the holiday.
If employees are required to work on Deepavali, they must be compensated with:
- Two times the ordinary daily wage; or
- A replacement holiday, if mutually agreed.
Payroll and attendance systems must reflect these entitlements clearly.

Failing to provide correct public holiday benefits can result in penalties under the Employment Act 1955 and employee disputes.

Managing Staff Leave During Deepavali

For many industries, particularly retail, hospitality, transportation, and essential services, Deepavali coincides with peak demand. Employers should:

Plan ahead for staffing. Anticipate higher leave requests from employees celebrating the festival.
Handle overlapping requests fairly. Use clear HR policies to allocate leave on a rotational or first-come, first-served basis.
Ensure payroll and attendance systems are updated to reflect the Deepavali public holiday and avoid errors in salary processing.

Best Practices for Employers & HR

Managing cuti Deepavali is also about respecting cultural significance and building goodwill with staff. Employers can adopt the following practices:

Communicate Clearly

Inform employees in advance about the public holiday schedule and payroll arrangements.

Respect Cultural Traditions

Acknowledge the importance of the holiday for employees celebrating Deepavali.

Offer Flexibility

Consider shift swaps, replacement leave, or flexible hours if business operations must continue.

Stay Compliant

Ensure HR and payroll teams are up to date with the Employment Act and state gazette announcements.

Employers who balance compliance with cultural sensitivity strengthen their reputation as fair and respectful workplaces.

FAQs

How many days of cuti Deepavali in Malaysia?

By law, employees are entitled to one day of Deepavali leave in states where it is gazetted.

Is Deepavali a holiday in Sabah and Sarawak?

No. Deepavali is not a gazetted public holiday in Sabah and Sarawak, unless employers provide it as an additional company benefit.

What should employers pay if staff work on Deepavali?

Employees required to work on Deepavali must receive double their daily wage or a replacement holiday.

Can employers give more than 1 day of leave for Deepavali?

Yes. Employers may grant additional leave at their discretion, either through company policy, collective agreements, or goodwill arrangements.

Expand Your Team with Top Talent

Reach the best candidates in Malaysia by posting on Maukerja, Ricebowl, and Epicareer through AJobThing.