'Grinch' minister admits his Christmas holiday pay plan was a bit of a turkey

Workers appear set to win public holiday pay rates on Christmas Day after all, with the Andrews government on the cusp of caving to intense union pressure.

But the apparent back flip risks infuriating the business community, which had welcomed the government's decision that meant many workers would receive only Sunday rates for working Christmas Day this year.

Small Business Minister Philip Dalidakis on Thursday morning told reporters he would review the decision, which was announced earlier this week.

"Maybe I've got it wrong," Mr Dalidakis said.

The government had ruled Christmas Day this year would not be given the same status as a public holiday because it falls on a Sunday. 

A public holiday had instead been declared for Tuesday December 27.

Victoria had been the only state not to recognise Christmas Day as a public holiday.

Premier Daniel Andrews welcomed the move to reconsider the Christmas Day holiday, especially given the position of other states to grant a public holiday on December 25.

Earlier this week Shop, Distributive and Allied Employees Union state secretary Michael Donovan slammed the government's decision to deny public holiday rates for December 25.

"It is up to the premier to address this, we think most Victorians would be shocked by this," he said.

Trades Hall secretary Luke Hilakari had also criticised the decision, calling Mr Dalidakis the "Grinch of the Victorian state government".

On Thursday the Victorian Chamber of Commerce and Industry said it was deeply disappointed the government was reconsidering making December 25 a public holiday in addition to December 27. 

The chamber's chief executive Mark Stone said an extra public holiday would be a "significant blow" for businesses. 

"Many Victorian businesses will face financial pressure if they have to foot the bill for yet another public holiday," he said.

Mr Stone said businesses had planned out their expenditure and rosters for the Christmas period but now faced uncertainty and higher costs.

In the lead-up to the 2014 state election, Mr Andrews announced new public holidays for the Friday before the AFL Grand Final and Easter Sunday.

The original decision to pay Sunday rates on Christmas Day this year came after a review was undertaken in 2015.

Federal Opposition Leader Bill Shorten also weighed in earlier this week, saying Christmas Day should be a public holiday, "full stop".