Labour Day, Internatinal Workers’ Day or May Day is observed on the 1st of May every year in India and in many parts of the world. This day commemorates the efforts and achievements of the working class. In 2025, Labour Day is observed on Thursday, May 1st.
In India, there’s a common question: Is Labour Day 2025 a bank holiday? The single-line answer is yes, though it differs from bank to bank and state to state. In this blog, we will discuss whether banks will be closed that day, the observance of the day in India, and the historical background.
What Is Labor Day And Why is it celebrated
Labour Day is usually celebrated in recognition of the labour union movement, primarily the eight-hour work day movement in the 19th century. It also represents workers’ rights, self dignity and the improvement of workplace conditions.
Regions of India use different names in their native languages as it’s a celebrated nationwide holiday:
Kamgar Din in Maharashtra
Uzhaipalar Naal in Tamil Nadu
Majdoor Divas (Hindi-speaking states)
The first observance took place in Chennai in 1923 under the initiative of the Labour Kisan Party of Hindustan. This officially marked the start of India officially observing Labour Day.
Does India Celebrate Labour Day as a Bank Holiday in 2025?
As noted previously, observance of Labour Day as a holiday in the banking sector depends on state government holiday lists drawn up in consultation with the Reserve Bank of India (RBI). Generally, the government and bank sector is on holiday for this day in most states. Yet, this isn’t a public holiday and therefore may not apply across the nation as a whole.
The Follwoing States Will Probably Observe May 1 2025 As A Bank Holiday:
These are the states that most of the time observance of bank holiday on Labour Day for bank employees and will most likely do so in 2025:
Maharashtra
Tamil Nadu
Karnataka
Andhra Pradesh
Kerala
West Bengal
Punjab
Odisha
Gujarat
Goa
These states customarily include May 1 st in their annual gazetted or restricted holiday lists and thus close banks, government agencies and in many cases private sector firms.
States Which May Not Observe Labour Day As An Official Bank Holiday:
In the Northern and North Eastern side of the country, these include:
Uttar Pradesh
Bihar
Jharkhand
Assam
Manipur
People living in these regions may not observe Labour Day would not be observed as an official holiday for banks. Banks may remain open, although some Central government offices may choose to hold some commemorative functions.
These states are suspected to lack observance of marking holidays associated with these and thus for these states it is advisable to check their RBI approved holiday calendar for observance marking 2025 which gets published during the earlier part of January of the year.
Banking Activities and online services on labour day
If the banks are closed, you can still accomplish most services via the internet. These services include:
Mobile banking
ATM withdrawals
Net banking
UPI transactions
Services that involve some form of manual activity, like cheque clearance, branch level inquiries, etc will be moved to the next operational day (Friday, May 2, 2025).
How India Commemorates Labor Day
To a large extent, labor day is symbolic in India. However, some states and trade union take the initiative to organize rallies, awareness campaigns and deliver speeches. There is paid leave to the workers by factories and industrial setups.
List by State:
In Tamil Nadu, May Day is marked by political speeches about labor rights and other issues.
In Maharashtra, trade unions organize marches in Mumbai, Pune and other urban cities.
In Kerala, recognized by way of worker parades and cultural programs.
Many Educational institutions and colleges today organize and conduct debates, essay writing competitions or even seminars on the subject of the labor laws alongside the welfare of the workers.
Significance of Labour Day in Contemporary India
While primarily considered a workers’ holiday, Labour Day in India now focuses more on:
Policy of minimum wages.
Provision of safe working areas.
Informal sector employee rights.
Loss of employment and job security.
Besides these, it helps raise awareness of the dignity of work, which tends to get ignored in a developing economy like India’s, particularly when gig workers and freelancers form part of the norm.
Conclusion: Should I Arrange a Holiday on May 1, 2025?
Those from regions where Labour Day constitutes a public holiday should note that:
All in-person transactions should be done on or before April 30, 2025.
There are likely to be delays in clearing forward cheques or document Checking.
Travel or personal activities as numerous offices will likely be closed.
As per the general rules, do not forget to check the holiday schedule released by the state government or branch office of the bank, as certain rules may be applicable.
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