Malaysia Public Holidays 2026: Employer Guide to Holiday Pay & Compliance

1. Introduction 

Malaysia has one of the highest numbers of public holidays in Asia, combined with unique employment policies. Observances vary by federal and state calendars, and many religious dates shift year to year. For employers entering the market or managing teams across multiple states, that complexity can quickly lead to payroll errors and compliance risk.

This guide breaks down Malaysia’s public holidays for 2026, including federal and state observances, mandatory holidays, premium pay rules, and compliance considerations. It also explains how Slasify’s Employer of Record (EOR) can help you stay aligned with Malaysia’s employment law requirements and simplify hiring and payroll.

2. Official Public Holidays in Malaysia (2026)

Malaysia’s public holidays in 2026 combine federal holidays (widely observed across the nation) and state-specific holidays that depend on the employee’s state of employment.

Note: 

• The Birthday of the State Ruler or Federal Territory Day is by law one of the 5 mandatory paid holidays. Each state has its own holiday date depending on the birthday of the State Ruler. 
• Dates are based on current projections and subject to official gazettal by the Malaysian government.

* Subject to change (common for Islamic-calendar holidays due to official confirmation).

2026 State Public Holidays in Malaysia

Here is a list of state public holidays in Malaysia. Employers should track and publish the observed state public holidays early, so everyone is on the same page. 

Key notes for employers

• Malaysia’s holiday calendar is different each year as religious holiday dates can shift (especially Islamic holidays), so avoid locking payroll and staffing plans too early.
  
  
• Substitute holidays may apply when a holiday falls on a weekly rest day.
  
  
• Entitlement is based on state of employment, so employers should have a location-based holiday map if they have members across different states.
  
  
• Publish your company holiday schedule early and align it with your HR policy and payroll rules.

💡Slasify Pro Tip: 2026 Workforce Planning: Key Dates for Leave Management

Strategic planning is essential for Malaysia’s holiday calendar in 2026, as several holidays align to create long weekends. HR managers should prepare for high leave volumes during these periods:

• Chinese New Year (Feb 17-18, Tue-Wed):
  • Risk: Employees taking leave on Feb 16 (Mon) to bridge a 5-day break.
  • Note: Arrange shift swaps or block leave policies in early January to ensure coverage.
    
    
• Hari Raya Aidilfitri (Likely Mar 21-22, Sat-Sun):
  • Risk: Since holidays fall on a weekend, Mar 23 (Mon) becomes a mandatory replacement holiday.
  • Note: Ensure payroll systems flag Mar 23 as a Public Holiday. Working on this day requires holiday premium rates.
    
    
• Christmas (Dec 25, Fri):
  • Risk: A natural 3-day weekend combined with year-end leave clearing.
  • Note: Encourage teams to clear annual leave balances by Q3 to prevent a manpower shortage in December.

3. Workforce Planning Around Malaysia’s Holiday Calendar in 2026

State variations

Public holiday entitlement and observations should follow the employee’s state of employment. If you are hiring across states, you’d need a location-based holiday calendar to track within the organization. 

Holiday clusters

Track Malaysia’s holiday calendar for different states closely. Plan early around predictable peaks like Hari Raya, Chinese New Year, and Deepavali, since many employees tend to take annual leave to extend the holidays. For hospitality and consumer-facing teams, set coverage rotations in advance and move approvals and cut-offs earlier to prevent operational gaps.

According to Datuk Dr Syed Hussain Syed Husman, President, Malaysian Employers Federation (MEF), “The frequent additional public holidays require companies to pay employees three to four times the daily wage for working on those days, escalating labour costs.”

Payroll timing

Wages are generally due no later than the 7th day after the wage period ends, while wages for rest days, gazetted public holidays, or overtime can be paid by the last day of the next wage period. Employers should track Malaysia’s bank holidays and translate this into practice by pulling forward cut-offs, approvals, and bank submission timelines ahead of major holiday clusters to avoid last-minute adjustments. 

Shift & retail work

Shift-based roles often still require coverage on public holidays, so publish rotation rules early and align expectations with staff. Employers should budget accordingly; under the Employment Act 1955, Section 60D, employees who work on a paid public holiday are entitled to an extra 2 days’ wages on top of holiday pay, and hours beyond normal working hours are paid at not less than 3 times the hourly rate.

4. Employer Obligations and Payroll in Malaysia

Managing Malaysia’s public holidays in 2026 can be a challenging task, since there are gazetted public holidays, mandatory holidays, and state-specific holidays. You should discuss with your HR and finance team on the mix and combination of paid holidays, leave entitlements, and payroll calculations, as they will affect how you structure your manpower budget and HR policy locally. 

Public Holiday Entitlements

• Employees are entitled to at least 11 paid public holidays per year under the Employment Act 1955 (Section 60D). Employers can offer more observed holidays by documenting the rules in a contract or company policy.
  
  
• Out of the 11 paid public holidays, 5 are mandatory (cannot be substituted): Labour Day, Yang di-Pertuan Agong’s Birthday, National Day, Malaysia Day, and the State Ruler’s Birthday/Federal Territory Day (Depending on the state).
  
  

Working on a Public Holiday

If an employee works on a paid public holiday, they’re entitled to holiday pay plus an additional two days’ wages (i.e., three days’ pay in total). If a public holiday falls on a weekly rest day or overlaps with another public holiday, a substitute holiday may apply based on the statutory rule and the employee’s workweek setup.

If the employee’s salary is lower than or equal to RM4,000 and works beyond normal working hours on a public holiday, overtime is paid at not less than 3 times the hourly rate.

Part-Time & Shift Workers

Under the Employment (Part-Time Employees) Regulations 2010, part-time public holiday entitlements may be prorated depending on how working hours and eligibility are defined. Employers should state the rule clearly in the contract/policy. Shift workers are still covered by public holiday and premium pay rules.

A common failure point is misclassifying the day type (public holiday vs rest day vs normal day overtime), which often leads to underpayment and avoidable disputes.

Compliance Risks

Below are some of the most common compliance risks that employers should avoid:

• Misclassification of state holidays by applying the wrong state’s holiday calendar to an employee results in incorrect entitlement, payroll calculation, and employee benefits.
  
  
• Underpayment of public holiday wages by treating public holiday overtime as normal overtime (should be 3 times the hourly rate instead of 1.5 times), or missing public holiday premium rules (2 times the normal working day pay).
  
  
• Non-compliance with the Employment Act 1955, such as failing to provide minimum paid public holidays, applying substitution rules incorrectly, or unclear documentation for HR policies.
  
  
• Non-compliance by employers could see fines up to RM 50,000 per offense by the Malaysian Labour Department, or Jabatan Tenaga Kerja (JTK). 

5. Payroll & Compliance Considerations

Compliance and payroll in Malaysia tend to get misaligned when public holidays aren’t treated as part of the payroll “maintenance process.” The goal for every employer should be to build a process that runs smoothly even when banks close and dates shift. Here are some of the key areas to pay attention to:

• Payroll cycles & bank closures: Align payroll cycles with Malaysia’s bank holidays (especially around long weekends and major festival periods), so approvals, bank processing, and pay dates don’t get delayed.
  
  
• Holiday premium pay: Apply the correct premium pay calculations for public holiday work, instead of using the standard workday and overtime structure.
  
  
• Hours & day-type tracking: Track public holiday work hours and day-type classifications separately (public holiday vs rest day vs normal day), so you will always be ready for audits.
  
  
• Recordkeeping: According to the Income Tax Act 1967 (Act 53, Section 82), employers should maintain payroll and employment records for at least 7 years to support compliance checks and dispute resolution.
  
  
• Compliance: Ensure compliance coverage for both locally hired employees and EOR-hired staff, including consistent policies, documentation, holiday entitlements, and payroll for Malaysia.
  
  

6. How Slasify Helps Employers in Malaysia

Employers in Malaysia need to deal with many public holiday challenges, including state variations, shifting religious dates, and premium pay rules. These can easily turn into lasting operational risks if you don’t have a clear and structured process. Slasify offers end-to-end HR support that can help you stay compliant every step of the way:

• EOR Services: Hire without setting up a local entity using Slasify’s Employer of Record in Malaysia, while staying aligned with Malaysia’s employment laws.
  
  
• Payroll Compliance: Streamline and automate accurate salary processing, overtime calculations, day-type classifications, hours worked, and public holiday premium pay with Slasify’s global payroll solution.
  
  
• Local HR Expertise: Get expert guidance on state-specific holidays, employment rules, regulation updates, and HR strategies with dedicated account manager support.
  
  
• APAC Scalability: With support of 150+ countries, 130+ currencies, and extended APAC employment guides, Slasify lets you manage key APAC markets like Malaysia, Vietnam, Singapore, and more through one cloud platform.

With both federal and state-specific observations, managing Malaysia’s public holidays in 2026 is about knowing the holiday entitlement and pay rules and reducing payroll calculation errors. If you are managing a workforce across different states, tracking state holidays and announcing clear holiday and pay policies is crucial. 

With Slasify, employers can get access to expert guidance on Malaysia’s employment law and a suite of HR solutions to help you scale your business effortlessly. Ready to simplify compliant hiring and payroll in Malaysia? Talk to our HR expert today to learn how you can supercharge your team for 2026. 

7. FAQ: Malaysia Public Holidays & Employment

1. How many mandatory public holidays must Malaysian employers provide?

Employment Act 1955 (Section 60D) requires 11 paid public holidays annually, including 5 mandatory days: 

• National Day
• Yang di-Pertuan Agong’s Birthday
• The relevant State Ruler/Head of State’s Birthday (or Federal Territory Day),
• Labour Day,
• Malaysia Day. 

The remaining holidays are employer-selected and should be documented.

2. Do public holidays differ between Malaysian states?

Yes. Malaysia has federal holidays and state-specific holidays. The eligibility of state holiday entitlements depends on where the employee works.

3. What happens if employees work on a public holiday?

They are entitled to holiday pay plus two days’ wages at the normal rate. Overtime pay for working on a public holiday is 3 times the normal rate (hours beyond the normal 8 hours). 

4. Are replacement holidays required if a holiday falls on Sunday?

Yes. If a public holiday falls on an employee’s rest day (often Sunday), the next working day becomes a paid replacement holiday under the Employment Act 1955 (Section 60D). 

However, which day counts as the “weekly holiday” can vary by state (e.g., Friday vs Sunday frameworks), so always align the replacement logic to the employee’s work location and weekend pattern.

5. Can employers offer additional or floating holidays?

Yes. Employers can offer additional or floating holidays via contract or company policy. Many employers do this to reduce admin friction across mixed-state teams.