Malaysia Public Holiday Pay 2026: Double Pay, Triple Pay, Overtime Rules & Employer Guide

When a public holiday falls on a workday, Malaysian employers must apply the correct pay rates or risk non-compliance with the Employment Act 1955. The rules differ depending on whether an employee works on the holiday, performs overtime, or takes leave during the public holiday period.

This guide explains Malaysia's public holiday pay rules, overtime rates, replacement holidays, and employee entitlements in simple terms.

Examples of Public Holidays in Malaysia

Public holidays in Malaysia consist of nationwide holidays and state-specific holidays. Employers should always verify the official holiday calendar applicable to their state before finalising work schedules and payroll calculations.

Nationwide Public Holidays

Examples include:

Chinese New Year
Labour Day
Wesak Day
Agong's Birthday
Awal Muharram (Maal Hijrah)
National Day
Malaysia Day
Deepavali
Christmas Day

State-Specific Public Holidays

Examples include:

Thaipusam
Federal Territory Day
State Ruler's Birthday
State Governor's (Yang di-Pertua Negeri) Birthday

As public holiday dates may vary from year to year, employers should refer to official government announcements and state holiday calendars for the latest information.

Public Holiday Pay Rules Under the Employment Act 1955

Scenario 1: Employee Does Not Work on a Public Holiday

If an employee is not required to work on a public holiday, they are entitled to their normal daily wages for that day.

In other words, employees receive a paid day off and no additional payment is required.

Scenario 2: Employee Works on a Public Holiday During Normal Working Hours

If an employee works during their normal working hours on a gazetted public holiday, the employer must pay:

Normal daily wage (1x)
Additional public holiday payment equivalent to 2x the Ordinary Rate of Pay (ORP)

This effectively results in what many employers refer to as "triple pay".

Formula

Total Pay = Normal Daily Wage + (2 × ORP for hours worked)

Scenario 3: Employee Works Overtime on a Public Holiday

If an employee works beyond their normal working hours on a public holiday, overtime hours are generally compensated at:

3x the Hourly Rate of Pay (HRP)

This is one of the highest overtime rates provided under Malaysian employment law.

Scenario 4: Public Holiday Falls on a Rest Day

If a gazetted public holiday falls on an employee's rest day, the next working day generally becomes the substitute public holiday.

Employees remain entitled to public holiday benefits for the substitute day.

Scenario 5: Public Holiday During Annual Leave or Sick Leave

If a gazetted public holiday falls on a day when an employee is on approved annual leave or sick leave, the public holiday generally should not be deducted from the employee's leave entitlement.

Employers should ensure leave records are managed accurately and in accordance with the Employment Act 1955 and company policies.

Public Holiday Pay Rates in Malaysia

The table below provides a simple overview of common public holiday pay scenarios.

Situation	Entitlement
Employee does not work on public holiday	Normal daily wage
Employee works during normal hours	Normal wage + additional public holiday compensation
Employee works overtime on public holiday	Up to 3x Hourly Rate of Pay (HRP)
Public holiday falls on rest day	Substitute public holiday
Public holiday falls during approved leave	Public holiday generally should not be deducted from leave entitlement

This table can serve as a quick reference for employers and HR teams when managing payroll during public holidays.

Can Public Holidays Be Replaced?

Under the Employment Act 1955, employers may substitute a public holiday with another day.

Any replacement holiday should be communicated clearly to employees in advance and properly recorded in company policies, notices, or HR systems.

Employers should maintain accurate records of public holiday substitutions to avoid payroll disputes and compliance issues.

Calculating Public Holiday Pay: Worked Examples

Example 1: Employee Works on a Public Holiday

Monthly salary: RM3,500
Working hours: 8 hours per day
ORP: RM3,500 ÷ 26 = RM134.62
HRP: RM134.62 ÷ 8 = RM16.83

Public Holiday Pay for 8 Hours Worked

Normal daily wage = RM134.62
Public holiday payment = RM269.23

Total payable = RM403.85

Example 2: Employee Works 3 Hours Overtime on a Public Holiday

Overtime pay = 3 × RM16.83 × 3
Overtime amount = RM151.46

Total payable = RM555.31

Common Employer Mistakes on Public Holiday Pay

Paying Only 1.5x for Public Holiday Work

The standard overtime rate for normal working days does not apply to public holidays. Employers should apply public holiday rates according to the Employment Act.

Not Recognising All Applicable Public Holidays

Employers sometimes focus only on nationwide holidays and overlook state-specific holidays.

Deducting Annual Leave

Public holidays generally should not be deducted from an employee's annual leave entitlement where applicable.

Not Paying Probation Employees Correctly

Probationary employees are generally entitled to the same public holiday benefits as confirmed employees unless otherwise permitted by law.

Incorrectly Calculating Part-Time Employee Entitlements

Part-time employees may be entitled to public holiday benefits under the Employment (Part-Time Employees) Regulations 2010.

Which Employees Are Covered?

Following amendments to the Employment Act 1955 that took effect in 2023, public holiday entitlements generally apply to employees regardless of salary level.

However, certain benefits under the Employment Act, such as overtime payments and other specific protections, may be subject to separate eligibility requirements.

Employers should review the latest legislation, employment contracts, and company policies when determining employee entitlements.

Public Holiday Pay Calculator

Calculating public holiday pay manually can be challenging, especially when overtime, shift work, and replacement holidays are involved.

To simplify payroll administration, employers can use:

These tools can help estimate employee costs, statutory deductions, leave entitlements, and payroll expenses more accurately.

FAQs

Is public holiday pay double or triple pay in Malaysia?

Employees who work on a public holiday are generally entitled to their normal daily wage plus additional public holiday compensation prescribed under the Employment Act 1955.

Depending on the hours worked and the applicable payroll calculation, employers commonly refer to this as "double pay" or "triple pay."

Is public holiday pay mandatory in Malaysia?

Yes. Eligible employees covered under the Employment Act 1955 are entitled to public holiday benefits in accordance with Malaysian employment law.

How many public holidays are there in Malaysia each year?

The number of public holidays varies depending on the state. In addition to nationwide holidays, each state may observe its own public holidays such as ruler birthdays, state-specific celebrations, and regional observances.

Can employers replace public holiday pay with another day off?

Employers may substitute a public holiday with another day in accordance with the Employment Act 1955, provided employees are informed and proper records are maintained.

What happens if a public holiday falls on a Sunday?

Where a public holiday falls on a rest day, the next working day generally becomes the substitute public holiday.

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