The Victorian Government has reversed its decision not to declare Christmas Day a public holiday after conceding it made the wrong call.

December 25 falls on a Sunday this year so the Government had originally declared the public holiday would fall on the Tuesday, following Boxing Day.

It meant those working on the Sunday would not have received extra penalty rates.

But Small Business Minister Philip Dalidakis has now conceded that he made the wrong call and both days have been named public holidays.

"Oh look, I wish I was right all the time, but the only person that's right all the time is my wife in my household," he said.

"So I can tell you that unfortunately I don't have the wisdom of Solomon, but I think it's important that when you make a mistake you put your hand up, acknowledge it and get on with life."

'Late change won't affect businesses'

Mr Dalidakis said the late notice would not throw out the wage estimations small businesses had already planned for.

"Our estimation is around 4 to 4.5 per cent of all small business ... are expected to open or consider opening. So we think the impacts are limited," he said.

Mr Dalidakis said there had been no pressure from unions or Federal Opposition Leader Bill Shorten to change the decision, but some people working on Christmas Day had contacted him, which helped change his mind.

He said cancelling the public holiday on December 27 would put Victoria out of line with the rest of the country.