📢 [UPDATE] 15 September 2025 Declared Additional Public Holiday — Is It Compulsory & How to Pay Your Staff?

Malaysian government has officially declared Monday, 15 September 2025 as an additional public holiday in conjunction with Malaysia Day, which falls on Tuesday, 16 September 2025. This means Malaysians can enjoy a 4-day long weekend from Saturday (13 Sept) to Tuesday (16 Sept).

But as an employer, you might be wondering — is this new holiday compulsory? What if your staff needs to work? And how much do you need to pay them?

Let’s break it down clearly for you.

✅ Is 15 September 2025 a Compulsory Public Holiday?

Yes.
This additional holiday was declared under Section 8 of the Holidays Act 1951, which makes it a mandatory national public holiday. Employers must observe this holiday, similar to how they treat Malaysia Day (16 Sept), Merdeka Day, or other gazetted holidays.

If your business needs to operate on 15 September, you must either:

Pay public holiday rates, OR
Provide a replacement paid leave to the employee.

Failure to do so may violate the Employment Act 1955 and expose the company to penalties.

💼 How to Pay Staff Working on 15 September?

To illustrate, let’s use the example of an employee earning a monthly salary of RM3,000.

Step 1: Calculate Daily & Hourly Rates

Monthly Salary: RM3,000
Working Days/Month: 26
Daily Rate = RM3,000 ÷ 26 = RM115.38
Hourly Rate = RM115.38 ÷ 8 = RM14.42

📊 Pay Scenarios

🟢 Scenario 1: Employee Works Normal 8 Hours

Public Holiday Pay = 2 × RM115.38 = RM230.76

🟡 Scenario 2: Employee Works 8 Hours + 2 Hours Overtime

Public Holiday Pay = 2 × RM115.38 = RM230.76
Overtime Pay (2 hours @ 3x) = 2 × (RM14.42 × 3) = RM86.52
Total Pay = RM230.76 + RM86.52 = RM317.28

🔁 Scenario 3: Employee Takes Replacement Leave

No extra pay on 15 Sept
Employee can get one day replacement leave

📝 Summary for Employers

Scenario	Rate Applied	Total Pay (RM)
Works normal hours on 15 Sept	2x salary	230.76
Works 8 hours + 2 hours OT	2x salary for normal hours 3x salary for OT	317.28
Given replacement leave	One (1) day leave	One (1) day leave

Based on a salary of RM3,000 divided by 26 working days =RM115.38 (hourly rate)

🛑 Final Notes for HR & Employers

15 September 2025 is a compulsory public holiday under Section 8 of the Holidays Act 1951. All employers must observe it.
If your employee works on that day, you are legally required to:
- Pay 2× the normal daily wage for up to 8 hours of work.
- Pay 3× the hourly rate for any overtime (work exceeding 8 hours in a day).
Alternatively, you may offer a paid replacement off-day instead of the double pay, but this must be clearly communicated and agreed upon.
Make sure all entitlements are properly reflected in the payroll and keep documentation to ensure compliance with the Employment Act 1955.
These rules apply to employees who are covered under the Act (generally those earning ≤ RM4,000/month or engaged in manual labor). For higher-income or management staff, company policy may vary — but fair and consistent treatment is still recommended.