Why Deepavali on 20 October 2025 Isn’t a Public Holiday in Sarawak

Deepavali, also known as Diwali, will be celebrated across Malaysia on Monday, 20 October 2025. The festival of lights is officially recognised as a public holiday in almost every state, except Sarawak, a difference that often confuses employers and HR teams managing staff nationwide.

Here’s a breakdown of why this happens and what Malaysian employers should take note of.

Deepavali Is Not a Public Holiday in Sarawak

While Deepavali is gazetted as a public holiday under the Holidays Act 1951 for most states, public holidays in Malaysia are determined by each state government.

In Sarawak, the State Government decides its own set of holidays, separate from Peninsular Malaysia and Sabah.

Deepavali is not included in Sarawak’s official holiday list because of demographic and historical reasons:

The Indian community in Sarawak is relatively small compared to other states like Selangor, Penang, or Negeri Sembilan.
Over time, the Sarawak government has prioritised holidays that reflect its local cultural and religious diversity, such as Gawai Dayak and Good Friday, instead of Deepavali.

The Sarawak government has consistently maintained this decision, although Deepavali remains a significant celebration for the Indian community living there.

What This Means for Employers and HR Teams

For HR and employers with operations in both Peninsular Malaysia and Sarawak, this difference affects work schedules, leave management, and payroll processing.

No Legal Obligation for Public Holiday Pay in Sarawak

Since Deepavali is not a gazetted public holiday in Sarawak, employers in that state are not legally required to provide paid time off for that day. However, if the company’s employment contract or internal HR policy lists Deepavali as a holiday, it must still be honoured as per company terms.

Continue Business as Usual in Sarawak

For Sarawak-based employees, 20 October 2025 remains a normal working day. Companies may choose to operate as usual, or at their discretion, allow leave applications for those celebrating Deepavali.

Cross-State Payroll and Attendance Differences

Employers with branches in multiple states must ensure their payroll teams handle public holidays accurately:

Employees in Peninsular Malaysia and Sabah will be entitled to a paid public holiday on 20 October.
Employees in Sarawak will not, unless the company provides an extra off day or substitute leave.

HR Best Practices to Manage This Difference

To avoid confusion or payroll errors, HR departments should:

Update the Company’s Annual Holiday Calendar

Include a clear note that Deepavali is not a public holiday in Sarawak.

Communicate Early with Staff

Send reminders at least one week before the holiday to clarify which states observe it and which do not.

Review Employment Contracts and Handbooks

Check if Deepavali is listed as a paid company holiday; if it is, apply it consistently across all branches.

Offer Flexibility Where Possible

Consider approving annual leave or replacement leave for Sarawak-based employees who celebrate Deepavali, even though it’s not an official state holiday.

Quick Overview - Deepavali 2025 Public Holiday Status

State / Region	Deepavali Public Holiday?	Notes
All States (except Sarawak)	Yes	Gazetted as a public holiday under state orders
Sarawak	No	Deepavali not included in state’s public holiday list

How Employers Can Support Inclusivity

Even though Deepavali is not an official holiday in Sarawak, HR can still acknowledge and celebrate it in the workplace. Small gestures such as festive greetings, decorations, or team lunches can help employees feel included and appreciated.

Encouraging cultural awareness among teams regardless of background, strengthens company culture and promotes harmony in a diverse workforce.

Frequently Asked Questions (FAQ)

Is Deepavali a public holiday in all parts of Malaysia?

No. Deepavali is a gazetted public holiday in all Malaysian states except Sarawak. This means employees in Sarawak are expected to work as usual unless their company offers additional leave benefits.

Can Sarawak employers give their employees a day off for Deepavali?

Yes. Employers in Sarawak may voluntarily grant annual leave, replacement leave, or a special holiday for employees celebrating Deepavali. However, this is entirely at the employer’s discretion unless stated in the company’s HR policy or employment contract.

How should HR handle payroll for Deepavali if the company operates nationwide?

HR should ensure public holiday pay is applied only to employees in states where Deepavali is officially recognised. For Sarawak-based staff, regular working day rules apply, unless the company has extended the holiday as part of its internal policy.

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