Staff Working on Public Holiday Malaysia? Here’s What HR Needs to Do

Public holidays give employees much-needed rest, but sometimes businesses need people to work. Employers who manage this properly by paying fairly or offering time-off in lieu build trust, reduce disputes, and create a healthier workplace culture.

Below we share with you how to manage working on public holidays. Read the explanation below.

Types of Public Holidays (Compulsory vs. Optional)

Under the Employment Act, every employee in Malaysia is entitled to at least 11 paid public holidays each year.

Category

Holidays

Notes

Compulsory (Nationwide)

- New Year’s Day (1 January)

- National Day (31 August)

- Labour Day (1 May)

- Malaysia Day (16 September)

- Yang di-Pertuan Agong’s Birthday

Must be observed by all employers across Malaysia

Optional (Employer selects from gazetted list)

- Chinese New Year (2 days, except certain states)

- Hari Raya Aidilfitri (2 days)

- Hari Raya Haji (1 day)

- Deepavali (1 day, except Sarawak)

- Christmas Day (25 December)

- Thaipusam

- Wesak Day

- Awal Muharram

- Maulidur Rasul

- State holidays (e.g., Sultan’s Birthday, state anniversaries)

Employers must fix and announce their chosen optional holidays at the start of each year

Employers must fix and announce their chosen optional holidays at the start of each year so employees are clear on entitlements.

If a public holiday falls on a rest day, the next working day is treated as a paid holiday. If it falls on a non-working day, employers must either provide a replacement day off or pay one extra day’s wages.

Are Employees Allowed to Work on Public Holidays?

Yes, but only under certain conditions. Employers may request employees to work on a public holiday when business needs require it, for example, in essential services, retail, hospitality, or when there are urgent deadlines.

However, employees’ consent and contractual obligations matter. The employment contract or HR policy should clearly state when and how employees can be asked to work on a public holiday, and what compensation they are entitled to.

Payment Rules for Working on a Public Holiday

Employees who work on public holidays must receive extra compensation as set by law. The rules depend on whether the holiday falls on a working day, rest day, or non-working day:

Holiday on normal working day: Employees receive their holiday pay plus an extra day’s salary. If they work overtime, hours beyond the normal schedule must be paid at 3× the hourly rate.
Holiday on rest day: The following working day becomes a paid holiday. Any hours worked must still be paid, including overtime if it exceeds normal hours.
Holiday on non-working day (e.g., Saturday in a 5-day week): Employees get one extra day’s salary or a replacement holiday, plus overtime for extra hours worked.

Employer’s Responsibility

When requiring staff to work on a public holiday, employers must provide either:

Double pay: 2× the ordinary daily wage, on top of the holiday pay (which effectively makes it triple pay for daily-rated employees).
OR a replacement paid holiday, or an additional day of annual leave.

On top of this, any hours worked beyond normal hours must be compensated at 3× the hourly rate.

Pay Calculation Examples

Scenario 1: Monthly salaried employee (RM3,000/month):

Daily rate = RM3,000 ÷ 26 = RM115.38
Holiday work pay = RM115.38 × 2 = RM230.76
If overtime is worked, each hour is paid at 3× the hourly rate.

Scenario 2: Daily-rated employee (RM100/day):

Holiday pay = RM100 (holiday entitlement) + RM200 (2× pay for work)
Total = RM300 for that day.

Employers should use a consistent wage calculation method (e.g., divide the monthly salary by 26 working days or 22 working days) and document the approach clearly.

Replacement Leave: Rules & Options

Instead of paying higher rates, employers may agree with employees to give:

A replacement paid holiday; or
An extra day of annual leave.

If a public holiday falls on a rest day, a replacement holiday must be given on the next working day.

Special cases, such as when two holidays fall on the same date (e.g., Malaysia Day and Maulidur Rasul), require employers to provide a replacement day for the optional holiday.

How to Manage Public Holiday Work Checklist (Template)

We share a checklist for employers below to help employers manage public holidays smoothly

Managing Public Holiday Work Checklist

☐ Publish a holiday calendar for the year in advance.
☐ Decide which optional holidays will be observed.
☐ Plan rotational shifts for holiday coverage.
☐ Offer time-off in lieu or replacement holidays where needed.
☐ Apply correct pay calculations (holiday pay + overtime if worked).
☐ Communicate quickly when “cuti peristiwa” (special holidays) are declared.
☐ Keep records of hours worked and payments made.
☐ Review policies regularly to stay compliant with legal updates.

FAQs

Do employees get double pay on public holidays?

Yes, employees working on a public holiday are entitled to at least double pay, on top of their holiday entitlement.

Can an employer force staff to work on a public holiday?

Employers can require work if stated in the contract or for essential services, but compensation rules must be followed.

How many public holidays are mandatory in Malaysia?

At least 11 paid public holidays per year, including five compulsory ones.

Can employers replace a public holiday with another day?

Yes, but replacement days or leave must be clearly communicated and agreed upon.

What happens if an employee refuses to work on a public holiday?

If the contract requires it and compensation rules are observed, refusal may be treated as insubordination. Otherwise, it should be discussed fairly between the employer and employee.

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