THE Federal Government had on Dec 31, 2025 gazetted Thaipusam and Federal Territory (FT) Day as public holidays for 2026 – both falling on Feb 1, 2026.
FT Day is a mandatory public holiday for private-sector employers in the Federal Territories of Kuala Lumpur, Putrajaya and Labuan.
On the other hand, Thaipusam has been designated as one of the employer’s six selected public holidays under Section 60D(1)(a) of the Employment Act 1955. Since both holidays coincide on the same day, a replacement holiday will be observed on the next working day, ie Feb 3 (Tuesday).
As a result, employees in Kuala Lumpur, Putrajaya and Labuan will enjoy an additional day off, effectively benefiting from extra leave due to the overlap of these public holidays.
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This is in line with Section 60D of the Employment Act 1955 which states:
Provided that if any of the public holidays referred to in paragraphs (a) and (b) falls on – (i) a rest day; or
(ii) any other public holiday referred to in paragraphs (a) and (b), the working day following immediately the rest day or the other public holiday shall be a paid holiday in substitution of the first mentioned public holiday.
In simpler terms, if a public holiday coincides with a rest day or another public holiday, employees are entitled to the next working day off with pay.
‘Different pay rates’
This ensures that employees do not lose their entitlement to a public holiday, providing them valuable time to rest, recharge and spend quality time with family and loved ones.
For those required to work during these periods, different pay rates apply depending on the day.
If employees are required to work on Sunday, they are entitled to compensation at the rest day rate. As for work performed on Monday and Tuesday, payment should follow the public holiday rates.
Monthly or weekly paid employees working on a rest day are paid half a day’s wages for work up to half of normal hours, a full day’s wage for work exceeding half but not normal hours and double the hourly rate for any work beyond normal hours.
Employees who work on a public holiday will receive extra pay. Employees on monthly or weekly pay will be paid double their ordinary wages and any work beyond normal hours is paid at triple the hourly rate.
Employers should plan ahead
It is important to note that this applies specifically to the three Federal Territories, Kuala Lumpur, Putrajaya and Labuan. Workers in other states will have different public holiday arrangements based on their respective state holidays and observances.
It is important for employers to anticipate reduced staff availability during this extended long weekend by adjusting shift schedules, re-distributing workloads and ensuring that critical roles are adequately covered without over-burdening employees who are working during the extended long weekend.
Payroll systems should be reviewed to correctly reflect public holiday pay rates and overtime since work performed on Monday and Tuesday should be compensated at public holiday rates.
Clear communication with staff about entitlements, work expectations and any alternative arrangements is essential to prevent confusion or disputes.
Where operational needs prevent employees from taking the replacement holidays, Section 60D(1A) of the Employment Act 1955 allows for substitution with another paid day off, subject to employee agreement.
Proactively addressing staffing, payroll, communication and policy alignment will help employers maintain operational efficiency, legal compliance and employee satisfaction during this extended holiday period. – Jan 3, 2026
Leonard Yeoh is a partner and Pua Jun Wen a senior associate with the law firm, Tay & Partners.
The views expressed are solely of the author and do not necessarily reflect those of Focus Malaysia.
Image credit: Calendar Malaysia
