Imagine this: it’s Malaysia Day, a public holiday. While most people are relaxing with their families, you’re asked to come into work. Naturally, the first thing you’d wonder is — “Am I getting paid extra for this?”

This is where public holiday pay rules come in. The Employment Act in Malaysia sets clear requirements so employees are fairly compensated when they work on gazetted holidays.

• Full-time employees: at least 11 days of paid public holidays a year
• Part-time employees: at least 7 days of paid public holidays a year

Out of these, 5 are mandatory and cannot be swapped:

1. National Day (31st August)
2. Labour Day (1st May)
3. Malaysia Day (16th September)
4. Yang di-Pertuan Agong’s Birthday
5. One more: either the Sultan’s/State Governor’s Birthday or Federal Territory Day

Employers can then pick the remaining public holidays for the year, but must notify employees in advance.

Here’s where it gets interesting.

• Mandatory 5 holidays: No substitutions allowed. If you work, you must be paid OT rates.
• Employer-chosen holidays: Can be substituted, but only if both employer and employee agree.
• Special holidays declared by the Minister: Can be swapped with another paid day off

Picture this: your weekly rest day is Sunday, and the public holiday just so happens to fall on that Sunday. Do you lose out?

Nope — the law says the next working day becomes a paid replacement holiday.

But take note:

• If the holiday falls on a Saturday off-day (not a rest day), no replacement holiday is given.

• Within normal working hours → 2× Ordinary Rate of Pay (ORP)
• Beyond normal hours (overtime) → 3× Hourly Rate of Pay (HRP) per extra hour

Example:
If your monthly salary is RM3,000, normal working hours is 8 hours:

• ORP = RM3,000/26days = RM115.38 per day
• HRP = RM115.38/8 hours = RM14.42 per hour

Scenarios:

• Work 4 hours on PH → 2 x RM115.38 = RM230.76 (Yes, even you work less than your normal working hours, you are entitled for 2x ORP)
• Work 8 hours on PH → 2 x RM115.38 = RM230.76
• Work 10 hours on PH → (2 x RM115.38) + (3 x RM14.42 x 2hours) = RM317.28

• Within normal part-time hours → 2× Daily Rate (DR)
• Exceed part-time but within full-time hours → 2× Hourly Rate (HR) per extra hour
• Exceed full-time hours → 3× Hourly Rate (HR) per extra hour

Example:
If hourly rate is RM10 and normal working hours is 4 hours:

• Work 4 hours → 2 x (RM10 x 4 hours) = RM80
• Work 8 hours → 2 x (RM10 x 4 hours) + (2 x RM10 x 4 hours) = RM160
• Work 10 hours → 2 x (RM10 x 4 hours) + (2 x RM10 x 4 hours) + (3 x RM10 x 2 hours) = RM220

Here’s a catch that many people overlook.
If an employee is absent without consent and without a reasonable excuse on the day before or after a public holiday, they lose their entitlement to holiday pay.

Example:

• Absent on Monday, Public Holiday on Tuesday → no holiday pay for Tuesday.

This rule applies to consecutive holidays too — you could lose pay for two holidays in a row if you were absent right before or right after them.

Employees earning RM4,000 and below are directly protected by the Employment Act — employers must follow the minimum rules.

But for those earning above RM4,000, the Act doesn’t strictly apply. Employers can decide based on company policy and employment contracts. That could mean:

• Off days instead of extra pay, or
• Special allowances written in your contract.

However, some categories of workers (manual labour, vehicle operators, supervisors of manual workers) are protected regardless of salary.

So, the next time your boss asks you to work on a public holiday, you’ll know exactly how your pay should be calculated. For most employees, the law ensures fair compensation — whether that’s double pay, triple pay, or a replacement holiday.

And for employers, understanding these rules isn’t just about compliance. It’s about trust, fairness, and showing employees that their time — whether at work or with family — is valued.