Employers Group Says Extra Hari Raya Holiday Will Raise Costs

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The government's decision to grant an additional public holiday for Hari Raya Aidilfitri is expected to increase costs for employers, particularly in the private sector

Malaysian Employers Federation (MEF) president Datuk Dr Syed Hussain Syed Husman said businesses will still have to bear salary expenses even if operations are halted for the extra day, according to the New Straits Times.

He noted that companies that choose to close must continue paying workers as usual, while those that remain open will face even higher wage costs.

"For companies that need to continue operations, employers must bear higher wage payments for staff working on the public holiday," he said, as reported by Utusan Malaysia.

Under the Employment Act 1955, employees who work on a public holiday are entitled to higher pay rates, which can be double or even triple their usual daily wages.

Syed Hussain said this makes the additional holiday a direct financial burden, especially for businesses that cannot afford to shut down operations.

The announcement also comes with timing challenges, as many companies had already finalised their work schedules and manpower planning ahead of the festive period.

"This short notice creates difficulties for employers who have already arranged operations in advance," he added.

Earlier, Prime Minister Datuk Seri Anwar Ibrahim announced that Malaysians will enjoy an extra public holiday for Aidilfitri

Under the arrangement, if Hari Raya falls on a Friday, the additional holiday will be observed the following Monday. If it falls on a Saturday, the extra day off will be given on the preceding Friday.

The move effectively creates a four-day weekend for many Malaysians, but employers say it comes with added operational and financial strain.