Rest Days vs Public Holidays: What’s the Difference?

Written by: Izz Murtada

Many people in Malaysia use the words “rest day” and “public holiday” as if they mean the same thing. They do not. The two are different in the law, and they are paid in different ways when an employee has to work. If you are an employee, knowing the difference helps you check that you are paid fairly. If you are an employer, knowing the difference helps you avoid costly mistakes.

This article is based on the Employment Act 1955 (Act 265). We will keep it simple, so everyone can follow along.

What is a rest day?

A rest day is the day off that every employee gets each week. Under section 59 of the Act, every employee must be allowed one whole day of rest in each week. The employer decides which day it is. For many offices this is Sunday, but it can be a different day for some jobs, such as shops and factories.

Here are a few things to know about rest days:

• If an employee has more than one rest day in a week, the last one is the rest day under the Act.
• For shift workers, a rest day means a continuous break of at least 30 hours.
• The employer must prepare a roster before each month starts, so employees know their rest days. If everyone has the same fixed rest day, the employer can put up a notice in a clear place instead.
• The employer must keep the roster for up to six years.
• The rule does not apply when an employee is on maternity leave, on sick leave, or recovering under certain social security or workmen’s compensation schemes.

What is a public holiday?

A public holiday is a special day set by the government, such as National Day or Workers’ Day. Section 60D of the Act says every employee is entitled to a paid holiday on these days. “Paid” means the employee gets the usual pay for the day, even though they do not work.

Each year, an employee must get paid holidays on:

• Eleven gazetted public holidays. Five of them are fixed by law: National Day, the Birthday of the Yang di-Pertuan Agong, the Birthday of the Ruler of the state (or Federal Territory Day for those who work in a Federal Territory), Workers’ Day and Malaysia Day.
• Any day that is declared a public holiday for that year under the Holidays Act 1951.

The employer must put up a notice before the year begins that lists the other six public holidays the employees will get. The employer and employee can also agree to swap some of these days for other days.

There are a few more rules that are good to know:

• If a public holiday falls on a rest day, or on another public holiday, the next working day becomes a paid holiday instead.
• If a public holiday falls while the employee is on sick leave or annual leave, the employer must give another day as a paid holiday.
• If an employee skips work on the day before or the day after a public holiday without the employer’s permission and without a good reason, they may lose the holiday pay.
• An employee on monthly pay is treated as having received holiday pay if the full monthly salary is paid with no cut for that holiday.

	Rest day	Public holiday
What is it?	One whole day off every week	A day set by the government for the whole country or state
Who decides the day?	The employer, through a roster or notice	The government (with some days that can be swapped by agreement)
How often?	Every week	A set number of days each year
Is it paid?	It is part of the weekly schedule, and monthly staff get their normal monthly salary	Yes, the employee gets a paid holiday
Can the employer ask the employee to work?	Only in limited cases	Yes, but extra pay must be given
Extra pay if working	Depends on the pay type and hours worked (see below)	Holiday pay plus two days’ wages (see below)

Can an employer ask an employee to work on a rest day?

The general answer is no. Section 60 says an employee cannot be forced to work on a rest day. The main exception is work that must run non-stop by two or more shifts, for example in some factories. The Act also allows an employee to be asked to work on a rest day in certain special situations listed in section 60A(2). If there is a dispute, the Director General of Labour can decide.

If an employee does work on a rest day, the pay is as follows:

• Daily or hourly paid employees: If the work is half of the normal working hours or less, they get one day’s wages. If it is more than half but not more than the normal hours, they get two days’ wages.
• Monthly or weekly paid employees: If the work is half of the normal working hours or less, they get half a day’s wages. If it is more than half but not more than the normal hours, they get one day’s wages.
• Work beyond normal hours on a rest day: The rate must be at least two times the hourly rate.
• Piece rate employees: They get twice the usual rate for each piece.

Can an employer ask an employee to work on a public holiday?

Yes, the Act allows it. Under section 60D(3), an employer may require an employee to work on a paid holiday. But the employee must be paid well for it. They get their normal holiday pay, and in addition:

• Monthly, weekly, daily or hourly paid employees: Two more days’ wages at the ordinary rate, even if they work less than the normal hours.
• Piece rate employees: Twice the usual rate for each piece.
• Overtime on a public holiday: Work beyond the normal hours must be paid at not less than three times the hourly rate (or three times the piece rate).

If the employee has a travelling allowance in their agreement, they should get it for that day too.

What employers should know

Here are some simple points for employers to remember:

1. Plan the rest days early. Prepare the monthly roster or put up a notice, and keep your records for up to six years.
2. Put up the holiday notice. Before each year starts, show the list of public holidays your employees will get.
3. Do not force work on a rest day. Unless the law allows it, an employee cannot be made to work on a rest day.
4. Pay the right rate. The pay for a rest day and for a public holiday is different, so check which one applies and which type of pay your employee has.
5. Remember the substitute day. When a public holiday falls on a rest day or during leave, a replacement paid day must be given.
6. Take it seriously. Not following these rules is an offence under the Act. A court can also order the employer to pay the wages that are owed.

One more point: the Act covers certain employees, mainly those who earn up to RM4,000 a month and those who do manual work. Employers should check if each employee is covered before deciding on pay for these days.

A simple example

Siti earns a monthly salary and works in a shop. Her rest day is Sunday. One Sunday, her manager asks her to come in for a full day. Since it is a rest day, she is paid one day’s wages for the work, because she worked more than half of her normal hours. Now think about Hari Raya or National Day. If her manager asks her to work on that day, she keeps her normal holiday pay and also gets two more days’ wages. The rule is different for each day, and the pay is different too.

Final thoughts

Rest days and public holidays may look the same on the calendar, but the law treats them differently. A rest day comes every week. A public holiday comes only on special days of the year. Knowing the difference helps employees understand their rights, and it helps employers pay correctly and stay on the right side of the law.

If you are an employer who is not sure how to plan rosters, calculate pay for rest days and public holidays, or follow the Employment Act, you do not have to work it out alone. At Kita Strategies, we are an HR company that helps businesses in Malaysia with HR matters and payroll in a clear and friendly way. Feel free to reach out to us whenever you need a helping hand.