How Working Days are Defined and Applied in Malaysian Workplaces

Working days don’t look the same for every company. While Monday to Friday is common in office settings, many industries still include Saturdays or even Sundays part of their regular workweek.

In this article, we will share how working days are defined in Malaysia to help HR teams, business owners, and admin staff define working days under Malaysian law, manage contracts, leave, payroll, and schedules correctly.

Working Days in Malaysia

The term “working days” usually means Monday to Friday, excluding weekends and public holidays. It is the most common setup for office jobs, government agencies, and many private companies. However, working days can look different depending on the industry.

Some sectors, like construction, manufacturing, or retail, may include Saturday as part of the regular workweek. The Employment Act 1955 gives employers the flexibility to decide working days, but this must be clearly written in the employee’s contract.

This definition matters because working days are used to calculate things like leave, payroll, overtime, and scheduling. If your company follows a 5-day week, leave is counted differently than a company with a 6-day week. That’s why employers need to match their working day policies with their operations and industry practices.

Standard Working Hours & Days

According to the Employment Act 1955, employees in Malaysia can work up to 48 hours per week, but not more than 8 hours per day. This is the legal limit unless a different arrangement is approved by the Director General of Labour.

In practice, most companies follow one of these two common setups:

A 5-day workweek, usually from Monday to Friday, with working hours from around 9 am to 6 pm. This setup is common in corporate, banking, tech, and administrative roles.
A 6-day workweek, from Monday to Saturday, where Saturday has shorter hours, often ending by 1 pm. This format is still widely used in sectors like construction, retail, and manufacturing.

Regardless of the setup, employees must receive at least one rest day per week. For most people, this is Sunday, but it can vary depending on the company or industry. The rest day should be clearly stated in the employment contract and used as a basis for calculating leave and overtime pay.

Industry Variations & Special Sectors

Not every company in Malaysia follows the same working day pattern. While many office-based jobs stick to Monday to Friday, other industries run on different schedules based on their nature of work, customer demands, or shift coverage.

Retail & F&B

Shops, restaurants, and cafes often operate on weekends and public holidays, especially in shopping areas or food courts. They usually use rotating shifts, where staff may have off-days during the week instead of weekends.

Office-based sectors (e.g. banking, IT, legal, finance)

Most of these follow a 5-day workweek, from Monday to Friday, with standard office hours. Saturdays and Sundays are rest days, and public holidays are observed unless stated otherwise in company policies.

Manufacturing & Production

Factories and plants often run on shift schedules, including weekends and sometimes night shifts. Working days are scheduled in rotations, and shifts are carefully tracked to manage rest days, overtime, and productivity.

Customer Service & BPO

Call centres and outsourcing firms may require 24/7 coverage, including public holidays. Employees work based on pre-planned shifts, and working days can fall on any day of the week.

Education & Training

Private schools, tuition centres, and training providers may include Saturday as a working day, especially for holding classes or doing admin work. Some institutions operate a 5.5-day week.

Construction & Engineering

These sectors typically follow a 6-day week, with Saturday as a working day. On-site work often starts early and may continue into weekends to meet project timelines.

Hospitality & Tourism

Hotels, resorts, and travel services work with flexible shifts, especially during weekends, school holidays, or peak travel seasons. Public holidays are usually the busiest time, not rest days.

Media, Creative & Entertainment

In these fields, working days depend on events, deadlines, or campaigns. Teams may work weekends or late hours when needed, then take off days on quieter days.

HR teams need to align contracts, payroll systems, and attendance records with the actual working day setup used in your industry. By doing this, HR teams can avoid disputes, keep compliance in check, and support fair treatment across different roles.

Rest Days and Public Holidays

Under Malaysian labour law, every employee must receive at least one rest day per week. For most companies, the rest day lands on Sunday. But depending on the nature of the business, the rest day may fall on a different day, especially for shift-based or rotating schedules.

If an employee is required to work on their rest day, the company must compensate them accordingly. The rate of pay for rest day work is higher than regular pay, as stated in the Employment Act 1955, and must follow the legal formula for overtime.

Public holidays are also not considered working days unless the employee is required to work. If an employee does work on a public holiday, they are entitled to either overtime pay or replacement leave, depending on company policy or what’s stated in their contract.

This is why HR teams must clearly define:

Which days are counted as rest days
How are public holidays handled if work is needed
What compensation applies in each case

Impact on Leave and Payroll Calculations

Understanding how working days are structured in your company is also important for accurate payroll and leave calculations. Check out below some key areas where working days make a difference:

Pro-rated Leave Entitlements

When calculating leave for new joiners or employees who resign mid-month, working days must be counted correctly. A 5-day workweek and a 6-day workweek will result in different leave balances, so this needs to be clearly defined in your system or manual records.

Sick Leave, Maternity Leave, and Annual Leave

Leave balances are usually tracked in working days, not calendar days. So, if an employee takes leave on a Saturday and Saturday is not a working day in your company, it should not be deducted. Misunderstanding this can lead to over- or under-deductions.

Unpaid Leave Deductions

For unpaid leave, HR teams must use the correct working day formula to calculate salary deductions. If calendar days are used instead, this can result in salary miscalculations, especially in February or months with public holidays.

Payroll Accuracy

Your payroll system or HRIS should be set up to distinguish between calendar days and working days. This ensures that wages, overtime, and leave balances are calculated properly, especially in industries with non-traditional schedules.

Best Practices for HR Teams

Managing working days effectively goes beyond setting a schedule. It affects how you handle contracts, attendance, leave, payroll, and compliance. See some best practices HR teams can follow to stay organised and legally sound below:

Clearly define working days and hours in every employment contract

Don’t assume a one-size-fits-all approach. Whether your company follows a 5-day or 6-day workweek, spell it out clearly in offer letters and contracts.

Document industry-specific policies for weekend and public holiday work

Some industries need staff to work on weekends or holidays. If that applies to your team, make sure your policy outlines how rest days, replacement leave, or extra pay are handled and keep it consistent.

Use an HRIS or attendance system that tracks based on your workweek

Digital systems help you automate attendance, shift planning, and leave tracking. Set the correct working day pattern in your system so it reflects how your company actually operates.

Communicate peak periods and blackout dates for leave

If your business has busy seasons (e.g. school holidays, festive sales, or audit periods), set clear blackout dates when leave is limited. Let your team know early, so they can plan around those dates.

Follow overtime and rest day pay rules, especially for hourly or shift-based staff

Make sure your payroll team understands how to calculate rest day pay, public holiday work, and overtime. Keep accurate logs and approvals so you can track hours properly and avoid disputes.

FAQs

What counts as a working day for salary calculation in Malaysia?

A working day is any day the employee is required to work, based on their contract. For most companies, this means Monday to Friday. However, in industries like retail or construction, Saturday may also be counted.

Public holidays and rest days are not considered working days unless the employee works on those days.

Can Saturday be considered a working day for all companies?

Yes, it can if it’s clearly stated in the employee’s contract. Some companies follow a 6-day workweek, especially in industries like engineering, retail, or education, where Saturday is a standard workday.

Are shift-based workers entitled to rest days?

Yes. Regardless of shifts or schedules, all employees must receive at least one rest day per week. This rest day may fall on any day, depending on how shifts are arranged.

How do public holidays affect working day counts?

Public holidays are not counted as working days. If an employee works on a public holiday, they are entitled to overtime pay or replacement leave, depending on company policy or what’s stated in their contract.

Is Sunday a working day in any industry?

Yes. In some sectors like F&B, tourism, retail, and customer service, Sunday may be a regular working day. It depends on the business model and scheduling needs. If Sunday is a workday, the company must assign another day as a rest day.

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