Many APAC countries distinguish between gazetted (mandatory) holidays and restricted (optional) holidays — and confusing the two is one of the most common compliance mistakes international employers make. In countries like India, Malaysia, and Singapore, employees can choose restricted holidays based on their religion, while gazetted holidays apply to everyone.
This guide explains how gazetted and restricted holidays work across major APAC markets, so you can build compliant holiday policies for your multi-country workforce.
This article is general information, not legal advice.
Key Takeaways
- Gazetted holidays are mandatory for all employees; restricted holidays are optional selections
- Employees typically choose 2-3 restricted holidays per year from an approved list
- Restricted holidays are often religious — allowing employees to observe their faith’s important days
- The rules vary significantly by country; there is no “one size fits all” APAC policy
- Multi-country employers need country-specific holiday policies
Country-by-Country Comparison
India
| Feature | Gazetted Holidays | Restricted Holidays |
|---|---|---|
| Number | ~17 central + state-specific | ~30+ |
| Mandatory? | Yes (all employees) | Employee selects 2 per year |
| Pay | Paid | Paid (for selected holidays) |
| Governed by | Negotiable Instruments Act | Central/state notification |
| Examples | Republic Day, Independence Day, Diwali | Makar Sankranti, Pongal, Guru Nanak Jayanti |
How it works in practice:
- Employer displays the list of gazetted and restricted holidays at the workplace
- Employees submit their 2 restricted holiday selections by a deadline (usually January)
- Employer approves the selections
- Selected restricted holidays are treated as paid holidays for that employee
Malaysia
| Feature | Federal Public Holidays | State Holidays |
|---|---|---|
| Number | 12 federal | Up to 6 state-specific |
| Mandatory? | Yes (all employees) | Yes, for employees in that state |
| Pay | Paid | Paid |
| Governed by | Employment Act 1955 | State legislation |
| Examples | Hari Raya Aidilfitri, Chinese New Year, National Day | Sultan’s birthday, state-specific festivals |
How it works in practice:
- Malaysia does not have a “restricted holiday” system like India
- All gazetted holidays (federal + state) are mandatory
- The Employment Act requires 11 paid holidays minimum
- Employers must track state-specific holidays for each location
Singapore
| Feature | Gazetted Public Holidays | Optional Holidays |
|---|---|---|
| Number | 11 | None (no restricted system) |
| Mandatory? | Yes (all employees) | N/A |
| Pay | Paid | N/A |
| Governed by | Employment Act | N/A |
| Examples | National Day, Chinese New Year, Hari Raya Puasa | N/A |
How it works in practice:
- Singapore uses a straightforward system: 11 gazetted public holidays
- No restricted holiday system
- Employees may request time off for non-gazetted religious holidays as unpaid leave or annual leave
- The government occasionally gazettes additional one-off holidays
Hong Kong
| Feature | General Holidays | Statutory Holidays |
|---|---|---|
| Number | 14 | 14 |
| Mandatory? | No (for private sector) | Yes (all employees) |
| Pay | Depends on contract | Paid |
| Governed by | Convention | Employment Ordinance |
| Examples | Ching Ming, Mid-Autumn, Chung Yeung | New Year, Chinese New Year, National Day |
How it works in practice:
- Hong Kong doesn’t have a gazetted vs restricted system
- The distinction is between General Holidays (banks/government) and Statutory Holidays (all employers)
- Private employers must grant 14 Statutory Holidays minimum
- General Holidays beyond the Statutory list are contractual benefits
Philippines
| Feature | Regular Holidays | Special Non-Working Days |
|---|---|---|
| Number | ~12 | ~12 |
| Mandatory? | Yes | Yes (nationally proclaimed) |
| Pay | Paid (200% if worked) | Not paid if unworked (no work, no pay) |
| Governed by | Labour Code | Presidential Proclamation |
| Examples | Independence Day, Rizal Day, Christmas | Black Saturday, All Saints’ Day, Ninoy Aquino Day |
How it works in practice:
- Regular holidays: employees get 100% pay even if they don’t work
- Special non-working days: no pay if employees don’t work (“no work, no pay” principle)
- If employees work on a special non-working day, they receive 130% of daily rate
- Both types are nationally proclaimed — employers cannot opt out
Japan
| Feature | National Holidays | No Restricted System |
|---|---|---|
| Number | 16 | N/A |
| Mandatory? | Yes | N/A |
| Pay | Paid | N/A |
| Governed by | Holiday Compensation Act | N/A |
| Examples | New Year, Foundation Day, Golden Week, Obon | N/A |
How it works in practice:
- Japan observes 16 national holidays (one of the highest in APAC)
- No restricted holiday system
- If a national holiday falls on a Sunday, the following Monday is a substitute
- Many companies also observe company-specific holidays (e.g., company founding day)
South Korea
| Feature | National Holidays | No Restricted System |
|---|---|---|
| Number | 15 | N/A |
| Mandatory? | Yes | N/A |
| Pay | Paid | N/A |
| Governed by | Labour Standards Act | N/A |
| Examples | New Year, Seollal, Chuseok, National Foundation Day | N/A |
How it works in practice:
- South Korea observes 15 national holidays
- No restricted holiday system
- Seollal (Lunar New Year) and Chuseok (Korean Thanksgiving) are multi-day holidays
- If a holiday falls on a Sunday, the following Monday is a substitute
Building a Multi-Country Holiday Policy
Step 1: Map Your Locations
Identify every country where you have employees and list each country’s gazetted holidays.
Step 2: Handle Restricted Holidays
For countries with restricted holiday systems (mainly India):
- Set a clear deadline for employees to select their restricted holidays
- Communicate the available list at the start of each year
- Track selections in your payroll or HR system
Step 3: Standardize the Approach
Consider whether your company will:
- Grant all gazetted holidays across all locations
- Grant country-specific holidays only
- Offer a “floating holiday” pool for employees to use for non-standard holidays
Step 4: Communicate Clearly
Each country’s employees should receive:
- A clear list of holidays observed in their location
- Instructions for selecting restricted holidays (where applicable)
- The company’s policy on working on holidays
Common Mistakes
1. Using One Country’s Calendar for All
An India-based policy applied to a Singapore office will miss holidays that Singapore observes and include holidays that Singapore doesn’t.
2. Ignoring Restricted Holidays
In India, employees have a legal right to select 2 restricted holidays. Ignoring this is non-compliant.
3. Confusing Regular and Special Holidays (Philippines)
Treating special non-working days the same as regular holidays results in overpayment. The pay rules are different.
4. Not Updating for Islamic Calendar Shifts
Countries with Islamic holidays (Malaysia, Singapore, Indonesia) need updated holiday dates each year.
Frequently Asked Questions
What is the difference between a gazetted and restricted holiday?
A gazetted holiday is mandatory for all employees — they get the day off with pay. A restricted holiday is one the employee selects from an approved list — typically 2 per year based on their religion.
Do restricted holidays apply in all APAC countries?
No. Only India and a few other countries have a formal restricted holiday system. Most APAC countries use gazetted holidays exclusively.
Can an employer deny a restricted holiday request?
In India, the employer can deny a restricted holiday if it creates operational difficulties, but must provide a valid reason. The employee can select an alternative restricted holiday.
How do I handle holidays across multiple APAC countries?
Use a country-specific holiday calendar for each location. Payroll software that supports multi-country calendars is essential for compliance.
Are there countries with no public holidays?
No. All APAC countries observe public holidays. However, the number and type vary significantly — from 8-16 gazetted holidays plus restricted options.