Malaysia Public Holiday Regulations
In Malaysia, public holidays are generally paid for employees covered by the Employment Act, with a mix of nationwide and state-level holidays and substitute days when a holiday falls on a rest day. In 2026, employees can expect around 14–20 public holidays depending on the state, so you should always confirm both federal and state calendars when planning leave and pay.
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List of Public Holidays in Malaysia (2026)
Malaysia has a mix of nationwide and state-level public holidays, and the exact number your employees receive depends on where they work. Use this table as a starting point, then confirm state-specific holidays and any officially declared additional days closer to the time.
Do Employers Have to Provide Paid Leave on Public Holidays?
Yes, Malaysian law generally requires employers to provide paid leave on public holidays for employees covered by the Employment Act 1955 (Peninsular Malaysia and Federal Territories) and equivalent state laws in Sabah and Sarawak. Employees are entitled to a minimum number of paid public holidays each year, including certain compulsory national holidays such as National Day, the Yang di-Pertuan Agong’s Birthday, Labour Day, and Malaysia Day. In practice, most employers grant more than the statutory minimum by including additional national and state holidays.
If a public holiday falls on a rest day or another paid holiday, it is usually substituted with the next working day, so your team does not lose the benefit. Part-time employees who normally work on the day a public holiday falls are generally entitled to paid holiday leave on a pro-rated basis, aligned with their usual hours. When employees are required to work on a public holiday, they must receive premium pay in addition to their normal wages, and in some cases a replacement day off, in line with the Employment Act and any applicable contract or collective agreement.
Legal Penalties for Not Providing Paid Holiday Leave
Failure to provide paid public holidays or the correct public holiday pay can expose your company to enforcement action by the Department of Labour (Jabatan Tenaga Kerja) under the Ministry of Human Resources. Inspectors can investigate complaints, review records, and order employers to pay arrears of wages, including underpaid public holiday pay and any related overtime premiums.
Non-compliance can lead to fines, which may increase for repeated offences, and in serious or persistent cases may also affect your company’s ability to maintain a good compliance record with Malaysian authorities. Common mistakes include misclassifying employees as not covered by the Employment Act, failing to recognise state-specific holidays where employees actually work, not granting a substitute day when a holiday falls on a rest day, and paying only basic wages instead of the required premium when employees work on a public holiday. Keeping clear attendance and payroll records and aligning contracts with statutory requirements is essential to reduce risk.
How Do Holidays Affect Overtime Thresholds?
Public holidays in Malaysia affect both pay rates and how you calculate overtime. When an eligible employee works on a public holiday, the Employment Act requires a higher rate of pay for the hours worked on that day, typically a multiple of the ordinary hourly rate. These premium rates apply regardless of whether the hours exceed the normal daily or weekly schedule, so holiday work is treated more favourably than standard overtime.
If an employee works beyond their normal hours on a public holiday, those additional hours may attract an even higher premium, combining public holiday and overtime rules. Rest days that coincide with public holidays can trigger substitute days off and different pay calculations, depending on whether the employee is required to work and how many hours they work. Because thresholds and multipliers can vary by category of employee and by region, you should always check the latest Employment Act provisions, Sabah and Sarawak labour ordinances, and any collective agreements before finalising your payroll rules.
Stay 100% Compliant with Leave Regulations Using Playroll
Managing Malaysia's public holidays and leave rules doesn’t have to be complex. Playroll keeps you 100% compliant by automatically tracking local holidays, observed days, and pay requirements – so your team is paid correctly and on time, every time.
Whether you’re hiring your first employee or scaling a growing team, Playroll lets you employ talent without setting up a local entity. We handle compliant contracts, benefits, and payroll in one platform, so you can reduce compliance risk and focus on growing your business while we take care of the heavy-lifting in the background. Book a chat with our team to get started.

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