Public Holidays in Malaysia: What Employers Should Know

In this article, we will clarify how Employers will only need to observe 11 days (per year) of the Gazetted holidays, out of which they are able to choose 6 out of the 11 days.

How many public holidays do we have?

Public Holiday is listed in the First Schedule of the Holidays Act. The 10 Public Holidays listed in the schedule is observed throughout Malaysia as follows:

• Chinese New Year
• Wesak Day
• Hari Raya Aidilfitri
• Independence Day on 31 August
• Hari Raya Haji
• Agong’s Birthday
• Malaysia Day on 16 September
• Deepavali
• Prophet Muhammad’s Birthday
• Christmas Day 25 December

It should be noted that in the States of Kelantan and Terengganu celebrate Chinese New Year for only one day, while other states celebrate it for two days. Kelantan and Terengganu also celebrate Hari Raya Haji for two days while other states celebrate it for one day.

But wait, there's more!

In Malaysia, there are two types of public holidays:

• National level 
• State level

National holidays are the aforementioned public holidays which are observed by most governmental and private organisations. State holidays are observed by certain states in Malaysia or when it's relevant to the state itself, according to section 9(1) of the Holidays Act.

For example, Kuala Lumpur celebrates Federal Territory Day along with two other territories on 1 February, according to section 9(2) of the Holidays Act. 

The Private Sector: 11 Days to be Observed.    

5 Compulsory Days  and 6 Elective Days

Under Section 60D of the Employment Act, every employee is to be entitled to the 11 gazetted public holidays and any day appointed as a public holiday (under Section 8 of the Holidays Act).

Employers are not required to observe state-level holidays. The employees are still required to work as usual if the employers do not declare these state-level holidays as paid holidays.

But there are exceptions: Federal Territory Day must be observed in the Federal Territories (KL, Putrajaya & Labuan). In other states, the Birthday of the Ruler or the Yang di-Pertua Negeri must be observed.

Section 60D provides that the employer must list  11 gazetted public holidays that the employees are entitled to before the commencement of each calendar year, 5 of which shall be:

• National Day,
• The Birthday of Yang-Di Pertuan Agong,
• The Birthday of the Ruler or the Yang di-Pertua Negeri or Federal Territory Day,
• Worker’s Day and
• Malaysia Day.

Employers can choose the remaining 6 holidays to make up the 11 days.

This section allows the employers to ask the employees to come to work on Chinese New Year, Hari Raya Aidilfitri or Deepavali! 

As stated earlier, the employer needs to list which 11 gazetted public holiday.

The Minister can create more holidays!

Thanks to Section 8 of the Holidays Act, the Prime Minister can declare any day as a public holiday. They have the power to choose any day they want as a public holiday in the Peninsular, the Federal Territories or certain States.

For example, in 2017, the Malaysian Prime Minister’s Department announced that 4 September 2017 was a public holiday in appreciation of the outstanding achievement of the Malaysian contingent in 29th Kuala Lumpur SEA Games.

This holiday is a national holiday and observed throughout Malaysia by the public sector and the private sector.  The private sector is governed by the Employment Act 1955.

Do note that the Employment Act only applies to Peninsular Malaysia or West Malaysia.  Sabah and Sarawak have maintained separate labour enactments.

Can the employer ask the employees to work on a Declared Public Holiday?

According to Section 60 of the Employment Act, an employee may be required to work on any paid holiday subjected to two days’ wages at the ordinary rate of pay.

Additionally, Section 60D 3(b) states that an employee who works on a holiday shall be entitled to a travelling allowance for that day if payable to them under the terms of their agreement with their employer but such employee shall not be entitled under this subsection to receive an increased rate of any housing allowance or food allowance.

If the employer does not grant leave to the employee, they may be fined.

In the previous installation of Sultan Muhammad V from Kelantan as Malaysia’s 15th Yang di-Pertuan Agong, Malaysian Employers Federation (MEF) executive director Datuk Shamsuddin Bardan said that employers who do not grant leave on 24 April 2017 could face a fine as according to section 99A of the Employment Act.

Meanwhile, Malaysian Trades Union Congress (MTUC) president Abdul Halim Bin Mansor said that government and private offices in every state should comply with the holiday as a sign of respect.

Replacement Day

Some organisations may have plans on certain holidays. The employer may grant the employee any other day as a paid public holiday in substitution for any of the public holidays according to Section 60D (1A) of the Employment Act.

Conclusion

There are only 11 days of paid Public Holidays, out of which the employers may choose 6 out of 11,  there are some special holidays the Minister may declare from time to time as special holidays.

However, the employers may choose a replacement day for these holidays declared at short notice. If the employers require the employees to work during those holidays declared by the minister, the rate of pay is that of a public holiday.

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Source: Alex Chang & Co. 

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