If you work in HR or finance in Malaysia, you need to know the public holidays for 2026 to plan employee leave, payroll, and operations. This guide covers everything—federal and state holidays, chances for long weekends, and how they affect payroll and workforce management.
How Public Holidays Impact HR & Payroll
- Each holiday has an impact on staffing, payroll processing, and workforce expenses.
- Federal and state observances differ—some days apply across the country, others in particular states.
- To plan leave cycles, operations coverage, and cost-effective scheduling, it’s helpful to know about long weekends.
- From a payroll compliance standpoint: days off influence overtime, leave accrual & cost predictions.
Key Public Holidays to Keep in Mind for 2026
Here are some of the main nationwide holidays you should mark on your calendar:
- 1 Jan (Thu) – New Year’s Day (most states recognize this)
- 17 Feb (Tue) – Chinese New Year First Day
- 18 Feb (Wed) – Chinese New Year Second Day
- 20–22 Mar approx.– Hari Raya Aidil Fitri / Eid-al-Fitr (Tentatively)
- 1 May (Fri) – Labour Day
- 31 May – 1 Jun – Hari Gawai Dayak / Tadau Kaamatan (East Malaysia celebrates this)
- 31 Aug (Mon) – Merdeka Day (National Day)
- 16 Sep (Wed) – Malaysia Day
- 7 Nov (Sat) – Deepavali (most states observe this)
- 25 Dec (Fri) – Christmas Day
Note: Holidays based on the Islamic calendar are tentative until state authorities confirm moon sightings.
Chances to Plan Long Weekends & Leave
You can get more time off without extra cost by planning your annual leave around public holidays. Here are some examples:
- Take Monday off after Labour Day (Fri 1 May) for a 4-day break (Fri–Mon).
- Merdeka Day on Mon (31 Aug) gives you a long weekend.
The Mid-year East Malaysia holidays (Kaamatan / Gawai) happen around 31 May-1 June—great to plan regional leave.
Tip for HR: Put out a yearly time-off schedule in January, highlight these days off , and push staff to make plans . This helps keep things running and saves money on staffing.
State-Specific Differences & What HR Should Know
While many days off are nationwide quite a few are unique to each state—so what’s true for Johor might not be for Sabah. For example:
- Some states take their weekend on Friday and Saturday instead of Saturday and Sunday (though most will switch to Saturday-Sunday by 2025).
- State holidays like the Sultan’s birthday or the day they take office change from state to state.
HR to-do: Set up a holiday schedule by state in your HR system to make sure local offices and workers (like those in Sabah and Sarawak) follow the right rules.
How This Affects Pay and Staff
- When a public holiday happens on a Sunday or a day off many states require a substitute day.
- Leave accumulation and overtime calculation must include holiday pay rules. For instance: work on an official holiday often needs holiday-rate pay.
- From a cost-planning view: more observed holidays mean you should plan for changes in employee pay possible higher rates for holiday overtime, and staff coverage.
2026 Holiday Planning To-Do List for SMEs & HR Teams
| Task | Why it matters |
| Publish full-year holiday calendar by Jan 2026 | Enables employees to plan leave early and helps HR schedule coverage |
| Review each state’s holiday list | Ensures correct compliance for multi-state operations |
| Mark Islamic dates as tentative | Because moon-sighting can shift dates—keep flexibility |
| Budget for overtime or holiday-work premiums | To avoid unexpected payroll cost spikes |
| Align leave policy with long weekends | To improve employee satisfaction and minimise ad hoc requests |
Malaysia’s public holidays for 2026 include key federal days such as Merdeka Day (31 Aug), Malaysia Day (16 Sep), Labour Day (1 May), and Deepavali (7 Nov), along with many state-specific holidays. HR teams should plan staffing and payroll to line up with these dates.
To Sum Up
Setting up the 2026 public holiday calendar goes beyond just marking days off—it plays a key role in HR and payroll planning. Knowing the main holidays grasping state differences and adjusting your workforce and budget to match will help your business run , keep payroll in line with rules, and make your staff content.
Set the dates. Add them to your HR Software. This allows your team to plan their year with a clear picture.
Frequently Asked Questions
How many public holidays does Malaysia have in 2026?
Malaysia has about 60-plus federal and state holidays in 2026, which cover cultural and religious events.
Do holidays vary by state in Malaysia?
Yes. Each state in Malaysia can declare its own holidays on top of the federal ones, so celebrations might differ depending on where you are.
What happens if a public holiday falls on a Sunday?
If a public holiday lands on a non-working day (like Sunday) in states with a Monday to Friday work week, the state law might declare a replacement holiday (on Monday).
Are Islamic-calendar holidays fixed dates?
No. Holidays like Hari Raya Aidil Fitri or Hari Raya Haji follow the lunar calendar and depend on moon-sighting. HR must treat them as tentative until officials declare them.
How should SMEs use holiday calendars in payroll and leave policy?
SMEs should add public holiday lists to their leave-management systems. They should line up annual leave requests with long weekends. They should also adjust payroll budgets for holiday-pay and staff coverage.