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Do part-time employees get holiday pay in Southeast Asia?
Safira Adnin
October 4, 2024

As an employer managing a cross-border and disparate workforce, one question likely on your mind is, “Do part-time employees get holiday pay?” Navigating this can be tricky, especially when your operations span different regions. In the U.S., the lack of a federal mandate on holiday pay for part-time workers means you might face inconsistent practices. However, in Southeast Asia, there’s a structured approach to ensure fair treatment and compensation for all employees, including part-timers.

Understanding these regulations isn’t just a matter of compliance—it’s about fostering a fair and motivating work environment. Let’s break down how holiday pay policies for part-time employees differ across key Southeast Asian countries and what this means for your business.

How Southeast Asia handles holiday pay for part-timers

Here’s a closer look at how some countries in Southeast Asia approach holiday pay for part-time employees:

  • Singapore: Under the Employment Act, all employees, including part-timers, are entitled to 11 paid public holidays each year. If a part-time employee works on a public holiday, they receive either an extra day’s salary or a day off in lieu.
  • Philippines:Filipino labor laws mandate that part-time employees receive holiday pay if they work on a public holiday, ensuring they are compensated fairly.
  • Malaysia:Malaysian labor laws support holiday pay for part-time workers, though the specifics can vary based on the employment contract. This means you need to clearly outline holiday pay terms in your employment agreements.
  • Indonesia: In Indonesia, part-time employees are entitled to holiday pay under the same conditions as full-time employees. If they work on a public holiday, they must be compensated with an additional day’s wages or provided a compensatory day off.
  • Vietnam: Vietnamese labor laws stipulate that all employees, including part-timers, are entitled to paid public holidays. If a part-time employee works on a public holiday, they should receive at least 300% of their daily wage.

Example of calculating holiday pay

To illustrate how holiday pay is calculated for part-time employees, let’s consider a practical example from Malaysia:

Imagine you have a part-time employee in Malaysia who works 20 hours a week at a rate of MYR 15 per hour. Here’s how you would calculate their holiday pay if they work on a public holiday:

1. Determine the employee’s daily earnings:

Daily Earnings = Hourly Wage × Hours Worked per Day

Assuming they work 4 hours per day:

Daily Earnings = MYR 15 × 4 = MYR 60

2. Calculate the holiday pay:

Holiday Pay = Daily Earnings × 2= MYR 60 × 2= MYR 120

In this scenario, the part-time employee would receive MYR 120 for working on a public holiday, doubling their daily earnings for that day.

Conclusion

or businesses operating in Southeast Asia, understanding the varied regulations surrounding holiday pay for part-time employees is crucial. These regulations ensure fair treatment and compensation, aligning with global standards of equitable labor practices.

However, the complexity of managing HR compliantly across multiple countries can’t be understated. Employment regulations, HR practices, and cultural norms vary widely across the region. This means that employee issues often require a nuanced and personalized approach.

If your business lacks in-house HR teams or local business entities, partnering with a professional employer organization (PEO) or an employer of record (EOR) can be invaluable. Glints TalentHub offers comprehensive HR services to ensure your business remains compliant and efficient. We provide on-ground support tailored to the unique needs of each market, making us the ideal HR service partner for all your people-related needs.

Schedule a no-obligation consultation with our experts to receive a tailored proposal today.

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