Last Australian state to make Easter Sunday a holiday

Tasmania will join the rest of Australia in recognising Easter Sunday as a public holiday despite opposition from the government and business groups.

The state's parliament on Tuesday night gave the green light to pass a law to ensure workers receive penalty entitlements on the day, as well as other rights.

Labor MP Sarah Lovell, whose opposition party put forward the legislation, said the change was not radical and was fair for employees.

"Tasmanian workers are treated differently and less favourably than workers doing the same job on the same day elsewhere in Australia," she told parliament.

NSW was the first state to recognise Easter Sunday as a public holiday in 2011, with other jurisdictions following.

There are 10 nationwide public holidays. Tasmania has 13 state-specific public holidays, the most of any jurisdiction, although all are regional and don't cover the whole island.

Prior to the vote, a coalition of seven business groups warned businesses would be forced to shut across the peak tourism Easter weekend if the law passed.

The Tasmanian Chamber of Commerce and Industry said the change will lead to a five-day Easter "shutdown".

"(Labor) fails to mention that Tasmania is the only state in the country with the absurd Easter Tuesday public sector public holiday," the chamber's acting chief executive Colleen Reardon said.

"Far from helping out workers, (the) flawed bill will actually result in many of them missing out on shifts, as small businesses are forced to stay shut rather than bear the costs of penalty rates."

The Liberal government was against the change but did not have the numbers in either house to block it.

Liberal MP Kerry Vincent said regional Tasmanian areas will be particularly hit, with more pressure placed on small businesses.

"If you think it is going to give extra money into pockets ... we all pay a public holiday surcharge. Every drink, every salad roll," he said.

"All of a sudden that $100 you walk into a pub or club with, you don't get the same amount for it."