The Department of Labour Peninsular Malaysia (JTKSM) has released a statement announcing that 1 February 2026 (Sunday) is gazetted as a public holiday for both Thaipusam and Federal Territory Day.
For private sector employers in the Federal Territories who observe Sunday as a rest day, an understanding of statutory obligations under the Employment Act 1955 (“EA”) is necessary for the overlap of these two holidays. Employers should take note of the following:
2 February 2026 (Monday): Federal Territory Day
Under Section 60D(1)(a) of the EA, employees are entitled to a minimum of 11 gazetted public holidays, five of which are mandatory and non-substitutable:
- the National Day;
- the Birthday of the Yang di-Pertuan Agong;
- the Birthday of the Ruler / Yang di-Pertua Negeri of the State in which the employee works, or the Federal Territory Day, if the employee works in the Federal Territory;
- the Labour Day / Workers’ Day; and
- Malaysia Day
Given that the mandatory holiday Federal Territory Day falls on a Sunday, employers in the Federal Territory who observe Sunday as a rest day are legally required to grant a replacement holiday on the working day immediately following 1 February 2026. Consequently, 2 February 2026 must be observed as a replacement public holiday.
3 February 2026 (Tuesday): Replacement Holiday for Thaipusam
Where an employer in the Federal Territories is also observing Thaipusam as one of its six optional gazetted holidays, a replacement holiday must be granted for Thaipusam due to the overlap.
Since the original holiday (Sunday) and the first replacement (Monday) are already accounted for, the replacement for Thaipusam falls on the next subsequent working day, which is 3 February 2026.
However, unlike Federal Territory Day, Section 60D(1A) provides that an employer may substitute the 3 February 2026 holiday for any other day, subject to agreement by the employee. This provides flexibility for an organisation’s business operations.
Rates of Payment for Working on a Public Holiday
If overtime eligible employees are required to work during these public holidays or the replacements, the payment rates prescribed under Section 60D(3)(a) of the EA will apply. Read our Guide to Malaysia Employment to learn more about the specific rates of payment for public holidays – https://dnh.com.my/guide-to-malaysian-employment-law/
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This article was written by Keanu Tan (Associate) from Donovan & Ho’s employment law practice.
Donovan & Ho is a law firm in Malaysia, and our employment practice group has built a reputation for providing strategic employment advice to local and global organisations. Our team of employment lawyers provide advice on employment law and industrial relations including review of employment contracts, policies and handbooks, advising on workforce reductions, and managing dismissals of employees for poor performance or misconduct. We also represent clients in unfair dismissal claims and employment-related litigation.
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