Replacement Holiday in Malaysia

In Malaysia, if a public holiday falls on a day when most people do not work (such as Saturday or Sunday), the following working day may be declared a replacement public holiday.

The objective of replacement holiday in Malaysia is to ensure that the public can enjoy the holiday that would otherwise be missed. This is known as the “replacement of holiday”.

What is the reason for replacement leave?

Replacement leave is usually given to an employee who has worked on a public holiday or during their supposed rest day or off day.

This is to compensate the employee for not having a break during the scheduled time off. It ensures that the employee still gets the necessary rest and relaxation away from work.

What is replacement holiday law Malaysia?

As per Section 60D(1A) of the Employment Act, the employer can designate any other day as a paid public holiday instead of any regular public holidays for the employee. However, this is subject to the agreement between the employer and the employee. The designated day must be within the same pay period as the original public holiday.

This provision in the Employment Act allows flexibility for businesses that might need to operate on public holidays.For instance, retail businesses may choose to open on certain public holidays to cater to increased customer demand.

In such cases, the employees working on the original public holiday may be compensated with a different paid holiday. It’s important that employees are made aware of this possibility and that their rights are protected in the process.

Replacement leave for public holiday in Malaysia

In Malaysia, if a public holiday falls on a rest day or a non-working day such as a Saturday or Sunday, the following working day shall be a paid holiday for the employee. This is known as a replacement public holiday or a substitute holiday. This rule is stated under the Malaysian Employment Act of 1955.

It’s important to note that replacement leave for public holidays in Malaysia is not applicable for all public holidays but only for certain compulsory public holidays. These may include the gazetted public holidays in Malaysia, such as New Year’s Day, National Day, Malaysia Day, King’s Birthday, Labour Day, etc.

The decision to declare a replacement holiday for state or optional holidays is at the discretion of the employer. Some companies may choose to observe these holidays while others may not. It’s always best for employees to verify this information with their employer.

What happens if a public holiday falls on Saturday in Malaysia?

In Malaysia, if a public holiday falls on a Saturday, it is typically not replaced by a holiday on another day. However, for states where Saturday is a working day, the following Monday will be a public holiday. It depends on the state’s own holiday regulations. It’s always best to check the specific state’s public holiday calendar to confirm.

What is the OT rate for replacement public holiday in Malaysia?

In Malaysia, the overtime rate for work done on a replacement public holiday is typically two times the hourly rate of pay, according to the Employment Act 1955.

However, this could vary depending on the specific employment contract or company policy. Always consult your HR department or employment contract for specific information.

Am I entitled to get triple pay if I work on public holiday in Malaysia?

If you are required to work overtime on a public holiday, your minimum pay will be triple your standard hourly rate. Thus, if your regular hourly rate is RM6.00, your overtime pay on a public holiday would increase to RM18 per hour.

This means that for every hour you work beyond your standard hours on a public holiday, you will earn an additional RM12. Therefore, if you were to work four hours overtime on a public holiday, instead of receiving the regular RM24, you would receive RM72.

This increase in pay aims to compensate for the inconvenience of having to work on a public holiday when most people enjoy their day off. It incentivises employees to readily agree to work during these periods, ensuring that the company continues to function smoothly even on holidays.Anyway, please consult your HR department first.