Public Holidays in Malaysia 2026: Compliance Guide for HR & Employers

If there’s one thing Malaysian HR practitioners can agree on, it’s that managing public holidays is almost an art form: balancing compliance with smooth operations. To help our members plan effectively for the year 2026, we have consolidated and simplified common queries on public holidays. The clarifications below are prepared with reference to the Holidays Act 1951, the Employment Act 1955, and the Public Holiday Schedule 2026 as announced by the Federal Government[1].

1. Public Holidays Falling on a Rest Day

When a public holiday falls on a rest day (e.g. Sunday), the rest day takes precedence. In such cases, employees are entitled to a replacement holiday on the next working day, or on another day as determined by the employer (with mutual consent).

Employees working on their rest day are entitled to rest day rates, and if they work on the scheduled replacement holiday, they are entitled to public holiday rates.

Public holidays falling on Sundays in 2026:

• 1 February 2026 → 2 February 2026

  • Thaipusam (KL*, Putrajaya, Johor, Negeri Sembilan, Perak, Penang & Selangor)

  • Federal Territory of Kuala Lumpur holiday

• 22 March 2026 → 23 March 2026

  • Hari Raya Puasa [Day 2] (All states)

• 31 May 2026 → 1 June 2026

  • Wesak Day (All states) *

• 8 November 2026 → 9 November 2026

  • Deepavali (All states)

2. Overlapping Public Holidays in 2026

Under Section 60D of the Employment Act, employees are entitled to a minimum of eleven (11) public holidays. Where two or more public holidays fall on the same day, one will be replaced on the next working day.

If the overlap involves one of the five (5) compulsory public holidays[2], the compulsory holiday remains, while the other is replaced. Employees working on the replacement holiday are entitled to public holiday rates.

Examples of overlaps in 2026:

• Thaipusam and Federal Territory Day both fall on Sunday, 1st February 2026. Since Sunday is a rest day (for most businesses), Federal Territory Day will be replaced on Monday, 2nd February 2026, and Thaipusam on Tuesday, 3rd February 2026.

• Wesak Day falls on Sunday, 31st May 2026. As Agong’s Birthday is observed on Monday, 1st June 2026, the replacement holiday for Wesak Day will be carried forward to Tuesday, 2nd June 2026.

3. Must Employers Recognise All Public Holidays, Including Suddenly Announced Ones?

This depends on how the holiday is declared, and what is stated in your employment contracts or handbook.

• Suddenly declared public holidays:
  

  • Declared under Section 8 (Bank or Public Holidays) of the Public Holidays Act 1951[3]= compulsory to recognise (e.g. National Voting Day).
    

  • Declared under Section 9 (Federal and State Government) of the Public Holidays Act 1951= not compulsory, but strongly advisable to observe. (e.g. Johor state declares public holiday when JDT FC wins the Malaysia Cup, again)

• Clauses in contracts/handbooks:

• If the clause states recognition of all public holidays → includes suddenly announced holidays.

  
  

• If the clause specifies a fixed number of public holidays → any additional declared holidays under Section 9 are at the company’s discretion.

  
  

• If no clause exists → reference will be made to Section 60D(1) of the Employment Act 1955 where employers must provide at least eleven (11) paid gazetted public holidays, five (5) of which are compulsory.

It’s highly recommended to Include a clause in employment contracts or circulate a list of observed public holidays for 2026 to staff as early as possible, to encourage early leave applications for a more planned and secured business operations.

4. Crediting Replacement Public Holidays into Annual Leave

The Employment Act 1955 does not expressly address this. We recommend granting replacement public holiday leave or designating two alternative dates as substituted public holidays (providing employee with an informed choice).

Since annual leave is subject to forfeiture and cancellation, it is not advisable to be credited into employees’ annual leave entitlement, as this may inadvertently result in those days being forfeited or cancelled.

5. How to calculate payments for work done on a public holiday?

An employee working on a public holiday is entitled to 2 times his ordinary rate of pay (ORP) for work done during his normal hours of work (even if he/she works for 2 hours only) and 3 times his hourly rate pay (HRP) for work done beyond his normal work hours[4].

To begin, you need to determine the Ordinary Rate of Pay (ORP) and Hourly Rate of Pay (HRP).

• ORP is calculated based on wages/26; and

• HRP is calculated based on ORP/normal hours of work.

Example:

Ali is earning a monthly basic salary of RM1,700 and allowance of RM300.

Assuming Ali is working for 10 hours on a public holiday:

ORP: RM2,000/26 = RM76.92

HRP: RM76.92/8 = RM9.61

For the first 8 hours, Ali is entitled to 2 times his ORP of RM76.92. He is entitled to RM153.84.

For the 2 hours of overtime, Ali is entitled to 3 times his HRP for each hour. This means you need to take RM9.61 x 2 hours of OT x 3. He is entitled to RM57.66.

Therefore, for 10 hours of work on a public holiday, Ali is entitled to an additional RM211.50, over and above his wage for the month.

Conclusion

As 2025 draws to a close and we step into 2026, public holidays remain more than just dates on a calendar, they are moments and opportunities that help to shape workplace rhythm, employee morale, and operational planning. By aligning with the required compliances, employers can enter the new year with clarity and confidence. Let’s welcome 2026 not only with festive cheer, but also with well‑planned schedules that keep both business needs and employee wellbeing in harmony. Kindly reach out to our consultants if you require assistance with managing next year’s leave arrangements.

Public Holidays

Reference:

[1] Bahagian Kabinet, Perlembagaan Dan Perhubungan Antara Kerajaan, Jabatan Perdana Menteri, Aras 4 Timur, Bangunan Perdana Putra,.” Kabinet.gov.my, https://www.kabinet.gov.my/storage/2025/08/HKA-2026.pdf.

[2] Section 60D of EA 1955: 1. National Day 2. Agung’s Birthday 3. State Ruler’s Birthday 4. Labor Day 5. Malaysia Day

[3] https://www.kabinet.gov.my/storage/2024/11/1951_12_31_act369.pdf

[4] Section 60D(3) of the Employment Act 1955