How is overtime pay calculated in Malaysia?

How is salary overtime calculated in Malaysia?

For employees paid on a monthly basis, overtime entitlements under the Employment Act are as follows:

  1. Working in excess of normal working hours on a normal work day: 1.5x hourly rate of pay**
  2. Rest day (follow normal working hours):
  3. Rest day (working in excess of normal working hours): 2x hourly rate of pay**

What is the OT rate in Malaysia?

Overtime Rate In Malaysia

1. Normal hours of work 1.5x or not less than one and a half times the hourly rate of pay.

How do I calculate my salary per hour in Malaysia?

“Ordinary rate of pay” in this context is basically the employee’s “daily” wage, and is calculated by dividing the employee’s monthly salary by 26. “Hourly rate of pay” means the ordinary rate of pay divided by the normal hours of work.

How do you calculate overtime per hour?


  1. Determine the employee’s hourly rate. daily rate ÷ 8 hours = hourly rate. Example: …
  2. To get the hourly overtime pay, compute for 25% of the hourly rate of a total of 125%. hourly rate x 125% = overtime hourly rate. Example: …
  3. Multiply the overtime hourly rate against the hours worked (e.g. 2 hours).
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Is overtime over 40 hours a week or 8 hours a day?

In California, overtime is officially counted both after 8 hours of work per day, AND 40 hours per week – according to the California Labor Code Section 510, i.e. The Cunningham Law. So, if you work 9 hours on Tuesday, you are entitled to get paid for 1 hour of overtime.

How do you calculate overtime pay in 8 hours?

Frequently Asked Questions About Overtime Pay

  1. Divide the worker’s daily rate by eight hours to get their hourly rate.
  2. Multiply the hourly rate by 110% (10% of the employee’s hourly rate) for the night shift hourly rate.
  3. Take the worker’s night shift hourly rate and multiply it by the number of hours worked.

How do you calculate overtime hours worked out?

Using the formula overtime % = (overtime hours) ÷ (regular hours) x 100, follow the steps below to calculate overtime percentage:

  1. Add up your total number of overtime hours. …
  2. Divide overtime hours by regular hours. …
  3. Multiply the result by 100.

What is the maximum overtime hours in Malaysia?

The maximum number of overtime hours that an employee can be required to work is 104 hours per month. Any work carried out on a rest day, or any of the gazetted public holidays, or any paid holiday substituted therefore, shall not be construed as overtime work.

How is double pay public holiday calculated in Malaysia?

For example, if you are usually earning RM20 per day, working on a public holiday entitles you to RM60 per day. This calculation is based on the holiday pay (RM20) + two days’ wages at ordinary rate of pay (RM20 x 2 = RM40).

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