Thaipusam and Federal Territory Day fall on the same day in 2026: Employer obligations to note under Malaysia’s Employment Act
Summary
Malaysia’s Federal Government has gazetted Sunday 1 February 2026 as a dual holiday: Thaipusam and Federal Territory Day. The Department of Manpower Peninsular Malaysia issued guidance for private-sector employers on replacement holidays, optional holiday selection, and pay entitlements under the Employment Act 1955.
Key Points
- Federal Territory Day (for Kuala Lumpur, Putrajaya and Labuan) is a compulsory public holiday under Section 60D(1)(a)(iii) and cannot be substituted.
- Because it falls on a Sunday (the typical weekly rest day), employers who observe Sunday as rest must grant a replacement holiday on the next working day: Monday, 2 February 2026.
- Thaipusam may be one of the employer’s chosen optional public holidays under Section 60D(1)(a); if selected, it requires a substitute holiday — here, the replacement would be Tuesday, 3 February 2026.
- Employers can give an alternative paid day off in lieu of Thaipusam with the employee’s consent, per Section 60D(1A).
- Employees required to work on a public holiday are entitled to public holiday pay as set out in Section 60D(3) of the Employment Act.
Content summary
The Department of Manpower Peninsular Malaysia clarified how employers should handle the overlap of Thaipusam and Federal Territory Day on Sunday 1 February 2026. Federal Territory Day is non-substitutable for employees in the Federal Territories and therefore triggers a statutory replacement day because it falls on the weekly rest day. If an employer has chosen Thaipusam as one of its optional public holidays, that too requires a separate substitute day. Employers are reminded of rules allowing a paid day off in lieu for Thaipusam with employee agreement, and that employees who work on public holidays must receive the prescribed holiday pay.
Context and relevance
This advisory is important for HR teams and employers operating in Malaysia — particularly those with staff in Kuala Lumpur, Putrajaya and Labuan. It ensures compliance with the Employment Act 1955 on holiday substitution and pay entitlements, helping avoid disputes or underpayment. The guidance also aligns with routine payroll and rostering planning around statutory holidays and weekly rest days, and is relevant to workforce planning and employee communications ahead of February 2026.
Why should I read this?
Quick and useful — if you manage people in Malaysia, this short note tells you exactly what to do so you don’t get payroll or swap-day decisions wrong. Save yourself the headache: check your holiday roster, confirm if Thaipusam is one of your optional public holidays, sort replacement days and update payroll for public-holiday pay.
Author style
Punchy. This is a practical legal reminder for employers — read it if you’re responsible for HR, payroll or compliance in Malaysian Federal Territories. It’s short, actionable and directly tied to statutory obligations.