Surprise Public Holiday: What Malaysian Employers Must Know
The sudden announcement of an additional public holiday on 15 September 2025 in conjunction to Hari Malaysia on the following day has shocked employers across Malaysia. The extra holiday is a gesture of appreciation for the bonds of unity and the uniqueness of Malaysia’s formation, according to Prime Minister Anwar Ibrahim.
Is 15 September a Compulsory or Optional Holiday?
In Malaysia, there are two types of public holiday:
- Compulsory Public Holiday (National Level) – Merdeka Day, Hari Malaysia, Agong’s Birthday
- Optional Public Holiday – Announced at the discretion of the Prime Minister or state governments
With 15 September announced by the Prime Minister as an additional national level public holiday, it is treated as a gazetted public holiday. Hence, employers must observe the day unless they are in the essential services sector with proper compensation.
What About The Salary and Overtime?
The salary and overtime calculation should be based on the Employment Act 1955 guidelines:
Scenario | Entitlement |
Not Working Employees | Paid public holiday |
Working Employees | Paid public holiday + double pay (2x daily wage) |
Working Overtime Employees | Additional triple pay (3x hourly rate) |
These are applicable to employees earning RM4000 and below, and certain categories above RM4000 under the EA scope.
What Should HR and Employers Do?
1. Update Internal Calendar & Inform Your Employees
Update your internal holiday calendars, time-off systems, and shift schedules. Keep your staff informed through email, WhatsApp, or your internal HR portal.
2. Adjust Payroll & OT Calculations
Ensure your payroll system is updated to reflect public holiday calculations. Pay special attention to:
- Full daily wages for employees who do not work
- Overtime rates for those who do
- Shift replacements or make-up days, if applicable
3. Plan Your Business Operations
For sectors such as logistics, F&B, healthcare, and manufacturing, operations may still need to continue. Make sure:
- There are enough staff on duty
- Leave is approved with backup plans in place
- Overtime is pre-approved and properly tracked
4. Optional: Turn It Into Business Branding
Encourage your employees to enjoy the break! You could:
- Organise a company team-building event
- Share social media posts highlighting your team celebrating the holiday
As Malaysia gearing up for the coming months of public holidays, it places extra responsibility on employers to ensure compliance. With HRX by IFCA, HR teams can stay compliant while ensuring business runs smoothly. Updating calendars, adjusting payroll, and planning operations in advance becomes seamless with a HRMS software like HRX.
