Hari Raya 2025: HR Essentials to Make the Festivities a Breeze

First off, a big Selamat Datang to our Perspective page at E2 Workforce Consulting! We're pumped to bring you many more articles that'll not only keep you in the loop but hopefully crack a smile or two along the way. So, what better way to kick things off than with a deep dive into the upcoming Hari Raya celebration? After all, we’ve all been counting down the days since the fasting month, right? (And no, we’re not just talking about the rendang and ketupat!)

Now, let’s be real, while everyone’s gearing up for holiday fun, HR professionals like yourself are the unsung heroes working behind the scenes, making sure that everything runs smoothly during this festive time. When the holiday bells ring, your HR responsibilities take center stage, and we’re here to make sure you’ve got everything covered like a Raya buffet spread! This article will walk you through the key areas you need to focus on and provide practical, no-nonsense tips to navigate them like a true HR pro. Ready? Let’s dive in!

The Big Question – When is Raya This Year?

Ah, the age-old question, when is Raya? Every year, we all find ourselves in the same predicament: Is it today? Is it tomorrow? Well, this year is no different, Raya’s official announcement will only come once the new moon has been sighted. Tentatively, the Hari Raya public holidays are set for 31st March 2025 (Monday) and 1st April 2025 (Tuesday), but remember, this could shift depending on the moon sighting.

Now, to make sure you're prepared, here’s how to manage your public holidays, depending on when they fall:

Hari Raya Public Holiday Falls on an Employee’s Rest Day:

If the Hari Raya public holiday falls on a rest day (e.g., Sunday), then the public holiday should be moved to the next working day. For example:

Hari Raya Public Holiday Falls on an Employee’s Off Day:

If the Hari Raya public holiday falls on an employee’s off day, this depends on your company’s policy. Legally, you are not required to substitute it to another day. If your company typically substitutes it with the next working day (similar to a rest day), then follow the same guidelines above.Now, if you need your employees to work on the Hari Raya public holiday or substituted public holiday, here’s how to handle the pay situation:

No.2: Some States Enjoy Longer Hari Raya Public Holidays This Year!

Alright, let’s talk perks. While we’re all counting down the days to Raya, some lucky states are getting extra holiday magic this year. Here’s a quick breakdown of where you might find these extra days:

• Malacca: This state is observing a 3-day Hari Raya public holiday this year, with the 3rd day Hari Raya public holiday falling on 2nd April 2025.

• Terengganu and Kedah: These two states have declared 30th March 2025 as an additional public holiday in conjunction with Hari Raya. Since this is a last-minute state holiday, you will need to observe it if your company follows all public holidays or it can be substituted for another day. However, if your company only observes selected public holidays, this is not compulsory to observe.

• Sabah: Sabah’s TYT’s Birthday has been moved to 30th March 2025, so this day will now be a public holiday to honour the Sabah TYT’s official birthday. If 30th March 2025 is a rest day for your employees, the holiday will be moved to the next working day.

  
  

No.3: Managing Raya Leave Requests and Company Shutdowns: A Harmonious Balance

The Raya season is a time for celebration, balik kampung travel, and, for many, a much-needed break. However, as employees take time off to enjoy the festivities, it can create some challenges for employers. Balancing leave requests with operational needs, while also managing company shutdowns (if any), requires careful planning and communication. Here’s how you can tackle both aspects to ensure a smooth Raya holiday for your team and your business.

A. Managing Leave Requests During Raya

With the festive season in full swing, employees are often eager to take time off. This makes the leave request process more important than ever, and HR should prepare in advance to handle the influx of requests efficiently.

• Encourage Early Planning: Notify your employees well in advance about the upcoming festive period and require them to submit leave requests as early as possible. 

  
  

• Set Clear Deadlines and Expectations: Establish a deadline for leave applications, making sure it’s communicated clearly. 

  
  

• Fair Leave Approval System: Whether you opt for a first-come-first-served basis or a rotation system, make sure the process is transparent and fair.

  
  

• Communicate Blackout Dates and Operational Needs: If there are certain days when leave cannot be granted, or if there are employees who cannot be granted leave day, be upfront - employees will better understand when they can or cannot take leave.

  
  

• Anticipate Attendance Issues: The festive season may also bring about increased absenteeism or tardiness. To manage this, it's crucial to establish clear attendance expectations. Employees should be reminded that if they are absent on the working day immediately before or after the Hari Raya public holiday without prior approval, they will forfeit their entitlement to holiday pay (salary for the Hari Raya public holiday) unless they provide a valid reason for their absence. In addition, any employee who goes AWOL during this period may face disciplinary action.

B. Planning for Company Shutdowns (if any)

Many companies opt for a brief shutdown during the Raya season, especially when there’s a natural dip in productivity due to employees being on leave. However, managing a shutdown requires careful consideration of employee leave policies and legal requirements.

If you plan to shut down the company, you need consent for employees to utilize their annual leave during the period of shutdown. Employers are not permitted to force employees to utilize their annual leave.

For full transparency, employees should apply for leave via your company’s leave management system. This allows for proper tracking and documentation of leave requests and approvals.

If some employees are uncomfortable using their leave during the shutdown, you can offer flexible options. For example, the company might absorb the cost for part of the shutdown period (e.g., paying for one day while employees use leave for the second day) or offer partial salary adjustments (e.g., 70% or 80% of salary during the shutdown). Even if you were to apply this scheme, consent is required.

No.4: Gift-Giving During Raya: What’s the Right Approach for Your Workplace?

Raya is a time of celebration, family, and of course, the giving and receiving of gifts! From Duit Raya to hampers and traditional treats, gifts play a huge part in the festive spirit. However, while exchanging gifts is a well-loved tradition, it’s essential for HR to make sure everything is handled with transparency and fairness. Otherwise, some issues may arise, such as:

• Potential undue influence: Gifts could be given with the intention of swaying business decisions or securing future deals.

  
  

• Conflict of interest: High-value gifts, if not properly managed, can raise questions around impartiality and fairness.

  
  

To avoid any missteps, it’s important to have clear guidelines in place. You can revisit you gift policy, issue a reminder on any declaration processes that you have in place. Otherwise, you can take this as an opportunity to introduce clearer guidelines.

No.5: Celebrating Raya with Your Team: Bonus or Duit Raya?

Raya isn’t just about feasting and festivities, it’s also an opportunity for employers to show appreciation for their employees. One of the most common questions is whether to give Duit Raya or a Raya bonus. Here’s how to decide:

Option 1: Duit Raya – The Heartfelt Gesture

A token of appreciation given during Raya, Duit Raya is typically a modest sum and is not subject to statutory deductions:

• Tax Deductions: None

• EPF Contributions: Not applicable

• SOCSO/EIS: Not applicable

  
  

Duit Raya is perfect for keeping things simple, festive, and personal. It’s a thoughtful way to spread some joy without overcomplicating things.

Option 2: Raya Bonuses – A Formal Reward for Effort

A Raya bonus, in contrast, is a structured payment usually tied to performance or company profitability. It is treated as part of the employee's income and is subject to statutory deductions:

• Tax Deductions: Yes

• EPF Contributions: Yes

• SOCSO/EIS: No

  
  

A bonus is ideal if you want to formally acknowledge employee contributions, reward hard work, or link it to company performance.

Be Cautious with Labeling Payments

It’s important to be clear about what you’re giving. If you plan to give a bonus but label it as Duit Raya to avoid tax or EPF contributions, beware! Authorities might scrutinize such actions, and mislabeling payments could lead to complications. For substantial rewards, it’s best to call it a bonus. If you’re simply spreading festive cheer, Duit Raya is the way to go.

Closing Remarks: Embracing the Raya Spirit with Understanding and Fairness

As we approach Hari Raya our team at E2 Workforce Consulting would like to take this opportunity to wish you a joyful and blessed celebration. May this special occasion bring peace, joy and harmony to you, your family and your loved ones.

If you require any support, our consultants at E2 Workforce Consulting are just a call away.