In Malaysia, public holidays are governed by the Employment Act 1955 and the Holidays Act 1951. For businesses, managing these dates requires a clear understanding of compulsory and elective holidays to ensure payroll accuracy and statutory compliance.
This guide breaks down essential holiday classifications in Malaysia and the 2026 public holiday schedule to help you stay compliant and operationally prepared.
Understanding the Main Holiday Types in Malaysia
Malaysia’s holiday landscape is unique because it reflects the country’s federal structure and its diverse cultural heritage. For a business to remain compliant, it must understand that the "official" calendar is actually a blend of three distinct holiday types:
- National Holidays: These are observed across the entire country (e.g., Merdeka Day, Labour Day, and Malaysia Day). Most national holidays are "Compulsory" under the Employment Act, meaning employers must grant them as paid leave and cannot substitute them for other days.
- State-Specific Holidays: These are gazetted only in particular states or territories. This category primarily includes Royal Birthdays (Sultan or Governor birthdays) and region-specific milestones like Federal Territory Day or Sarawak Day. These are mandatory for employees physically working within that state.
- Religious and Cultural Holidays: These reflect Malaysia's multicultural society and may be national or state-specific. Examples include Chinese New Year (National), Thaipusam (Selected States), and Harvest Festival/Kaamatan (Sabah and Labuan). Many of these are movable dates based on lunar or Islamic calendars.
Compulsory vs Elective Holidays
Under Section 60D of the Employment Act, private sector employees are entitled to a minimum of 11 paid public holidays per year. Employers must distinguish between mandatory observances and elective choices:
- Compulsory Holidays: These are non-negotiable and must be observed by all employers. They consist of National Day (Merdeka Day), the Yang di-Pertuan Agong’s (the Malaysian King) Birthday, the Sultan's or Governor’s Birthday (or Federal Territory Day in FT regions), Labour Day, and Malaysia Day.
- Elective Holidays: Companies choose the remaining six days from the official gazette to reach the 11-day minimum. To remain compliant, these choices must be communicated to employees via a formal notice or stated in the employment contract before the start of the year.
- Ad-hoc Holidays: Any holiday declared under Section 8 of the Holidays Act (special one-off holidays declared by the Minister) is mandatory for all employers and cannot be substituted.
Public Holidays in Malaysia 2026
The following table details the anticipated public holidays for 2026. Employers should cross-reference this list with the state where employees are physically contracted to work.
| Date | Day | Holiday Name | Scope |
|---|---|---|---|
| January 1 | Thursday | New Year’s Day | National (except Johor, Kedah, Kelantan, Perlis, and Terengganu) |
| January 14 | Wednesday | YDPB Negeri Sembilan's Birthday | Negeri Sembilan Only |
| February 1 | Sunday | Federal Territory Day | KL, Labuan, & Putrajaya |
| February 1 | Sunday | Thaipusam | KL, Putrajaya, Selangor, Penang, Perak, Johor, and Negeri Sembilan |
| February 2 | Monday | FT Day (Substitute) | Federal Territories Only |
| February 3 | Tuesday | Thaipusam (Substitute) | KL & Putrajaya Only |
| February 17–18 | Tue–Wed | Chinese New Year | National (all states) |
| March 5 | Thursday | Nuzul Al-Quran | KL, Labuan, Putrajaya, Kelantan, Pahang, Perak, Perlis, Penang, Selangor, & Terengganu |
| March 21–22 | Sat–Sun | Hari Raya Aidilfitri | National (all states) |
| March 23 | Monday | Hari Raya Aidilfitri (Substitute) | National (all states) |
| March 23 | Monday | Sultan of Johor's Birthday | Johor Only |
| April 3 | Friday | Good Friday | Sabah & Sarawak Only |
| April 26 | Sunday | Sultan of Terengganu's Birthday | Terengganu Only |
| May 1 | Friday | Labour Day | National |
| May 27 | Wednesday | Hari Raya Haji | National |
| May 31 | Sunday | Wesak Day | National |
| June 1 | Monday | Agong’s Birthday | National |
| June 2 | Tuesday | Wesak Day (Substitute) | National |
| June 21 | Sunday | Sultan of Kedah's Birthday | Kedah Only |
| July 22 | Wednesday | Sarawak Day | Sarawak Only |
Note: Dates for Islamic holidays are tentative and subject to confirmation by the Keeper of the Rulers’ Seal. Under the Employment Act, businesses must observe the official gazetted dates once formally announced.
Notable Holiday Periods in Malaysia 2026
The 2026 calendar features several clusters of holidays that create extended breaks. Here’s an overview of notable peak periods in the calendar this year:
The February Festive Clusters
The start of February creates a unique challenge for businesses in the Federal Territories. Because Federal Territory Day and Thaipusam both fall on Sunday, February 1st, official substitutes extend into Monday (Feb 2) and Tuesday (Feb 3).
This four-day block, followed closely by Chinese New Year mid-month (Feb 17–18), means employees will likely bridge these dates with annual leave for an extended mid-month break.
Aidilfitri Break in March
Hari Raya Aidilfitri is the most significant holiday in Malaysia, marking the end of Ramadan and a period of peak domestic travel. It is standard practice for employees to apply for a full week of leave to participate in the "Balik Kampung" (returning to hometown) tradition.
Beyond staffing shortages, you should anticipate severe logistical bottlenecks. Expect significant delays in freight and last-mile deliveries as highways reach peak capacity and courier services face substantial backlogs. perations typically enter a "silent period" during the two peak days of the festival (March 21–22), with transport availability recovering thereafter.
May and June Long Weekends
May 2026 is punctuated by Labour Day (May 1), Hari Raya Haji (Festival of Sacrifice, May 27), and a cascaded Wesak Day break (May 31 – June 2). This creates three separate long weekend opportunities within a five-week window. You will need careful project management to ensure operational deadlines remain on track during consecutive short work weeks
Operational and Payroll Implications
For your HR and Finance departments, the 2026 holiday calendar introduces several key areas that require careful attention:
- Holiday Pay and Overtime: If you require employees to work on a gazetted holiday, the costs increase significantly under Section 60D(3) of the Employment Act 1955. Beyond their regular monthly pay, they are entitled to an additional two days’ wages at their ordinary rate of pay (ORP) for their normal shift. If they work beyond those hours, they must be paid an overtime rate of at least three times (3x) their hourly rate of pay (HRP).
- Accurate Statutory Contributions: Under the Employees Provident Fund Act 1991 and the Employees’ Social Security Act 1969, extra holiday payments are classified as gross wages. While standard overtime is typically exempt from EPF, the "double pay" for holiday work often counts as regular wages for contribution purposes. You must precisely adjust your calculations for EPF, SOCSO, and EIS to ensure you are contributing the correct amounts and avoiding penalties for underpayment.
- Managing Leave Requests: Days between weekend holidays and mid-week festivals often lead to a high volume of leave applications as employees travel for family reunions. It is important to set clear leave policies early in the year to ensure you have enough staff to maintain operations during these culturally significant periods.
Professional Payroll and HR Services in Malaysia
Managing a workforce in Malaysia means staying ahead of state-specific holiday gazettes, tiered overtime rates, and statutory contribution windows. Our partners from RecruitGo specialize in helping international and local businesses through expert Payroll Management and Employer of Record (EOR) services.
We offer end-to-end solutions to help you navigate and offload the intricacies of Malaysian payroll and labor laws to local experts:
- Holiday pay and premiums are calculated accurately and on time.
- Your business remains fully compliant with the latest Malaysian labor regulations.
- Employee benefits and statutory contributions (EPF, SOCSO, and EIS) are managed seamlessly.
Learn more about how we can help you plan for upcoming holidays in Malaysia. Fill out the form below to hear from our local team.