Following the announcement of 15 September 2025 as a special public holiday, many employers are asking:
Is this holiday compulsory?
The short answer is: Yes.
It is a compulsory paid holiday for all employees covered under the Employment Act 1955 (“EA 1955”).
Law on Public Holidays
Under Section 60D(1)(a) of EA 1955, employers must provide a minimum of 11 paid public holidays each year, which are split into 2 categories:
- 5 Mandatory Holidays which must be observed: National Day; the Birthday of the Yang di-Pertuan Agong; the Birthday of the State Ruler/Yang di-Pertua Negeri/Federal Territory Day (whichever is applicable); Labour Day; and Malaysia Day;
- 6 Elective Holidays for employers to choose from the list of gazetted public holiday – eg. Chinese New Year, Wesak Day, Christmas, Hari Raya Puasa, Birthday of Prophet Muhammad, Deepavali. The chosen days must be displayed at the workplace.
Where does 15 September fit in?
On top of the 11 days, the Government has the power to declare additional public holidays – such as 15 September, under Section 8 of the Holidays Act 1951.
Under Section 60D(1)(b) EA 1955, this additional public holiday is a compulsory paid holiday, once it is officially gazetted by the Minister.
What are Employers’ Options?
Option 1: Give a Paid Day Off
Option 2: Require Employees to Work with Holiday Pay
Employers can still require employees to work on 15 September. But, public holiday rates must be paid.
- For employees paid daily, weekly or monthly: “Triple Pay” must be paid (Normal daily wage + 2 extra days’ wages)
- For employees paid by piece-rate: 2 times the ordinary rate per piece.
Option 3: Substitute the Holiday
Under Section 60D(1A) EA 1955, employers may substitute the 15 September holiday with another day. Under this option, employers pay a normal rate for 15 September 2025, but must grant a paid holiday on another day.
Special note: While the holiday on 15 September can be substituted, Malaysia Day on 16 September cannot be replaced as it is 1 of the mandatory public holidays.
Summary
15 September 2025 is a mandatory public holiday for all employees under EA 1955. Employers should plan ahead and communicate clearly with employees early on its plans.
Disclaimer: This article is intended for general educational purposes only and does not constitute legal advice. Please consult with a legal professional for advice on your specific situation.
This article was authored by Simon Hong Cheong King and Lee Chun Hau.
