How to Calculate Overtime Salary

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How to calculate overtime salary?

You are covered under the Malaysia’s Employment Act 1955 if your monthly salary is RM1500 or below.

The act governs many provisions of the employment including probationary period, breach of contract, termination, salary or wages, leave, retrenchment and so on. According to the law, employees who work beyond the ‘normal hours of work’ is considered working overtime and is entitled for overtime salary payment. So if you’re an Admin Assistant with salary RM1400 often finding yourself staying beyond 6pm in the office by your boss’ request, know that your employer has broken the law if they do not pay you overtime for your extra hard work.

For ease of explanation and simplification, calculations and rate shown in the following assumes the employee works 8 hours per day and is paid monthly (not on daily rate, weekly or others). The normal hours of work is defined as:

  • Maximum or no longer than 5 consecutive hours with a period of rest not less than 30 minutes
  • Not more than 8 hours of working in one day. And for a continuous 8 hours of work, there should be a minimum of 45 minutes of (paid) rest – the fact that you have lunch hour is part of the law, and not just letting you responding to nature’s call
  • Not more than 48 hours in a week

First, to calculate the overtime salary and payment, you must know your daily rate and hourly rate first. The daily rate payment is defined as (monthly paid/no of working days) and your hourly rate is (daily rate/normal hours of work). For example, if your salary is RM1200 and you work for 26 days – 8 hours per day, your daily rate = RM1200/26 = RM46.15 and your hourly rate = RM46.15/8 = RM5.80.

Now, the following table illustrates the rate of the salary payment for overtime work. Again here, please note that you need to be covered under the Employment Act to be entitled to this overtime, and the assumption that you are an employee receiving monthly rate payment is still applicable.

Normal working days Rest days Holidays
1.5 x hourly rate 4 hours or less:
Half day’s wage at normal rateMore than 4 hours:
1 day’s wage at normal rateExcess of 8 hours:
Not less than 2 x hourly rate
8 hours or less:
2 day’s wage at normal rateExcess of 8 hours:
3 x hourly rate

Note: Rest day is a day in a week where employee does not work. Normally, it falls on Sunday, but it can also be in rotational form between the employees. Holiday is gazetted Public state and national holidays.

Questions:

  1. Using the figures given, what is your overtime salary payment if you work for 6 hours on National Day, 31 August. [Answer: RM92.30]
  2. Calculate your min overtime salary if you work 10 hours on Sunday, your rest day. [Answer: RM116 RM69.35]

Source of guide: A Handbook of Malaysian Labour Laws, by M.N. D’Cruz.

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93 thoughts on “How to Calculate Overtime Salary

  1. PUTERY

    Dear sir

    I think you sunday ot calculation is supposed to be = 1 day’s wage + the balance 2 hours x RM11.60.
    So total is = RM46.15+23.20 = Rm69.35.

    thanks

    Reply
  2. james wong

    Dear Sir,

    What about Foreman earning RM2000 a month ? Are they covered for the OT ?

    Rgds
    James Wong

    Reply
    1. Zul

      Those earning more than RM1500 is not automatically covered, but it is possible for you to get OT entitlement. To make sure, check with your employer, or look back your contract/agreement if there is any expressed clause that says you are entitle for it.

      Reply
  3. Md. Ayatullah

    Hi everybody,

    I want to know the labour/workers payroll (wages & OT) calculation of Singapore. If anyone get 18 singaporean dollar and he/she have done 6 hours OT how will it calculation? Please let me know the calculation with sunday’s calculation.

    Regards
    Ayatullah

    Reply
    1. Zul

      Not really sure about the Singapore Employment Act but in think for rest day (e.g. Sunday) it will go something like this:

      (1.5 x OT hours worked x hourly rate) + (normal daily rate).

      Check with your employer to confirm this.

      Reply
        1. Zul

          That’s how the Singapore authority defines the rate (Malaysia also use 1.5, for overtime done on normal working days). Here’s how the Manpower Ministry of Manpower Singapore describes the overtime payment:

          1. All work in excess of the above hours of work is considered as overtime work, and the employee must be paid no less than 1.5 times his/her hourly basic rate of pay.

          2. Based on the hourly basic rate of pay, the overtime pay is calculated as: Hourly Basic Rate of Pay x 1.5 x Number of Hours of Overtime Worked.

          3. It is mandatory to make overtime payment to an employee if his basic salary is $1,600 or less a month, or if he is a workman (a workman is an employee whose work involves manual labour. Some examples of workman are lorry drivers, construction workers, kitchen helpers and so on).

          Reply
  4. cheron

    i try to do draft for overtime payment…
    how to do it….
    i didnt know how to make a draft for overtime payment….

    is it i need to make a form to create a draft :)

    Reply
    1. Zul

      To make a start, you will an overtime form. Ask the HR for a draft or search online.

      Then, you can transfer it to system or Excel for automatic calculation, where it calculates the payment based on the hours and rate of payment.

      Reply
  5. Shong Yee

    Dear Sir,

    My co. is giving a monthly Transport Allowance and there is daily Shift Allowance for worker if they work in night shift. This night shift is rotated every two weeks. and if there is less orders for the month workers are requested not to work night shift.

    May I know is the transport allowance & Shift Allowance given by my co. need to be used to calculate overtime?

    I seeked for some advices and some say yes & some say no so I’m quite confusing.
    Need your clarification please.

    Thanks & regards
    Shongyee

    Reply
    1. Zul

      OT is calculated based on wages.

      Employment act defines wages as basic salary that DOES NOT include allowances, including Traveling/ Transport Allowance, but it does not specify whether Shift Allowance should be excluded as well.

      In my opinion, both should not be used to calculate overtime, but to make sure about this, you can refer to local labour department near you.

      Reply
  6. Fang

    Dear Sir,

    I need ur advice urgently. We are using 26 days as daily proration method which stated in handbook

    Example:
    Basic Salary = RM 3900.00
    Hiredate = 9 June 2008
    No of working days = 5 working days

    So the Basic Rate Daily is 3900 / 26 = 150

    <>
    Monthly Salary = 150 * (26-5) = 3150

    Why less 5 days? Because employee doesn’t work for the company from 2 June 2008 – 7 June 2008.

    <>
    Monthly Salary = 150 * 16 = 2400

    Why 16 days? It is the exact working days of the employee
    9 – 13 June 08 = 5 days
    16 – 20 June 08 = 5 days
    23 – 27 June 08 = 5 days
    30 June 08 = 1 days
    Total = 16 days

    I want to know which calculation is correct, 1 or 2.

    Thank you. Your help is highly appreciated

    Reply
  7. Zul

    First calculation is sensible.

    I think the second calculation is totally wrong because you do not pay for his rest days, which he should be entitled to if he completes a full week cycle.

    It’s either the first, or 16 days he worked plus the 3 weekends (16+6), i.e 22xdaily rate (RM3300). However, I advise you to refer to labour office to confirm. Don’t go by me.

    Reply
  8. Fang

    Thank Zul,

    I called labour office before, but different officer gave different answer.

    One say, use exact working days. Another one say 26 is used to calculate leave encashment.

    That’s why i’m totally lost.

    Reply
    1. Zul

      I think there are circumstances where the use of actual days are more practical.

      For instance, a call center operator who works on 12-hour shift, and on 4/3 week schedule (4 days work, 3 days off and vice versa) does not have the usual working week, so in this case, actual days should be used.

      Reply
  9. hanafi

    Dear Sir, here I’m very confius for the OT culculation for Saturday, Sunday and Public Holiday. Are that company can acceptable the payment is including the monly salary.
    Let say I’m work 9 hour a day (08.00am to 06.00 pm) and 5 day a week.
    So on saturday I come to make OT as requirement by company,how they are should be do the calculation for pay.
    Exp:
    1) OT on saturday.
    basic / 22day work = 1 day payment rate
    1 day payment / 9 hour work perday = payment for 1 hour.
    1 hour payment X 1.5 = OT pay / hour.
    but know my company just pay 1 hour payment X 0.5 = OT pay / hour because they say the 1 hour is
    including the montly salary payment. Are that is true? look at the culculation below:
    I work 8 hour at the saturday (8.00am to 5.00am) and 1 hour payment rate is RM5.00
    are they have to pay this RM5.00 X 0.5 X 8 hrs = RM20 only or RM5.00 X 1.5 X 8 hrs = RM60 ?
    2) OT on Sunday
    basic / 22day work = 1 day payment rate
    1 day payment / 9 hour work perday = payment for 1 hour.
    1 hour payment X 2.0 = OT pay / hour.
    but know my company just pay 1 hour payment X 1 = OT pay / hour because they say the 1 hour is
    including the montly salary payment. Are that is true? look at the culculation below:
    I work 8 hour at the saturday (8.00am to 5.00am) and 1 hour payment rate is RM5.00
    are they have to pay this RM5.00 X 1 X 8 hrs = RM40 only or RM5.00 X 2 X 8 hrs = RM80 ?
    3) OT on Public Holiday
    basic / 22day work = 1 day payment rate
    1 day payment / 9 hour work perday = payment for 1 hour.
    1 hour payment X 3.0 = OT pay / hour.
    but know my company just pay 1 hour payment X 1hour Replacement of Rest Day = OT / hour because
    they say the 1 hour is including the montly salary payment. Are that is true? look at the culculation below:
    I work 8 hour at the Pb.Holiday (8.00am to 5.00am) and 1 hour payment rate is RM5.00
    are they have to pay this RM5.00 X 2 X 8 hrs = RM80 only or RM5.00 X 3 X 8 hrs = RM100 ?
    One think, that they can change the payment to Replacement of Rest Day?

    Please advice and email me at the email address below as soon as posible because it was come as major issue at my company.
    mhanafi_mdaud@yahoo.com

    Reply
  10. Desmond

    Dear Sir,
    I own a photo studio, my assistant basic salary is RM1250, Petrol allowance RM400, Fix OT allowance RM400, employment letter stated to work from 10am to 6pm (6 days a week), he is entitled to work on sunday, his off day is monday. my 1st question is, has this agreement break the law?
    2nd question, if i require him to work on monday (suppose to be his offday) what will the culcalation be? does it same applied to require him to work on public holiday? if not, what is the culcalation? thank you.

    Reply
    1. Zul

      Q1: In my opinion, this will be fine, provided (Pls do not construe this as legal advice):

      – Make sure he is duly entitled for lunch break (min required by law is 45 min, normal is 1 hour)
      – If he does OT in excess of RM400, he will be entitled for the additional OT payment.

      (Actually I’m not sure why a ‘fixed OT allowance’ is in place and I believe OT should be paid according to the hours worked. A fixed OT allowance perhaps is more suited for employees earning more than RM1500 to safeguard their interest in the job. Reason – they are not covered under employment law so OT structure in the article does not apply to them.)

      Q2: Follow the calculation based on Rest Day, using the table above as reference. However, if a holiday falls on that particular Monday, use the Holiday calculation instead.

      Reply
  11. Fiona

    I resigned from my previous job 3 month already. But the previous company still owing me an 2007 Accounting Fees, this payment was agreed between boss & me only without any contract. I was this company’s staff start from 14.11.07 and my position was an Account clerk. This Company have a very back date account not yet done, it’s difficult to complete it on normal working hour. After the discussion with boss, he offer me a Lum Sum price and allow me to finish it at home . The payment will be release after this account submit to auditor.
    I leave from this company on 10.06.08 but I still went back to this company for meeting of this 2007’s account and finally this Account submmited on the same month.
    I request the payment through phone so many times but no feedback from this company. So I went to see the boss but the boss told me he won’t to paid anything, nothing effect to him because our agreement without black and white.
    If I have a proof to verify I was finished this 2007 Accounts, is’t posible the labour law office will be protect and help me to get back my payment?

    Reply
    1. Zul

      A person’s verbal promise is as good as the person himself – if he’s no good, then a promise is tantamount to nothing.

      Yes, you can try to talk to the labour office (or industrial office) presenting your proof, witness etc, but my opinion is that, this will involve a tedious court process. Further, the labour and industrial office respond to complaints made within a certain amount of time e.g. 30 days, 60 days after the incident and so on. Go and check with them for confirmation.

      Reply
  12. KC

    Dear Sir,

    I would like to know:

    5 working days company, mon – fri (8.30am – 6pm)

    Q1. No. of working days should be 20 days or 22 days?

    Q2. Saturday consider as “normal working days” or “rest days”? (Since it is stated in the Employment Act that rest that is a day in a week where employee does not work)

    Q3. What should i do or where should i sue the comapny if it does not want to pay me OT?

    Please kindly advice.TQ!

    Reply
  13. lee

    I would like to ask….i work from (8am~4.30pm). half hour lunch…so,working hour should be 8.5hour or 8 hour?

    When calculate OT,it should be basic salary / 26working day / 8hour or 8.5hour a day?

    Reply
  14. Ummi

    Dear Sir,

    I really need your advise on my husband case.

    My husband work as QC Supervisor at a Machine Manufacturer Factory. The General Manager said that he is not entitled to get full overtime claim as his basic salary alraedy exceeded from RM 1500.00. He only allowed to claim overtime for the first 4 hours in one day. In case for Sunday overtime, he worked 8 hours, the rest 4 hours considered as his contributions to company. How come?!

    But when we asked Pej Buruh the officer there said that he entitled to get it because his job covered under the Employment Act 1955, First Schedule, section 2(1), no 2, sub no 3, page 81. Which considered him as menial workers also.

    Could you help advise how my husband can get the rest overtime hours he worked. We need the money.

    Please help.

    Thanks,

    Ummi

    Reply
  15. Siti Nur Jamilah Musa

    Hello,

    I am working from 8.30 am till 5.30 pm, inculding one hour rest.
    I am working from Monday to Friday.
    Total hours including my rest time will be 45 hours per week.
    My question is, whether Saturday and Sunday will be my rest day?

    Reply
  16. Daniel Alexander

    Sir,

    I joined on 13th November 2008 with RM2300 (salary) & RM500 (allowance). There is NO mention of what kind of allowance is given as my boss says the lady i’m replacing was earning less than me thus my “extra” earnings to be converted as allowance since the lady would be my subordinate.

    When i get my salary check, it is indicated that my salary (November 2008) is RM1380 and my allowance is RM300. I’m working 5 1/2 days in a week.

    Q1) Can they deduct my allowance?
    Q2) What would be the right calculation? Does it tally with my HR?

    Please reply.

    Many thanks

    Reply
    1. Zul

      Your salary and allowance are being paid on pro-rated basis, based on the actual number of employment days in November (13 to 30 Nov = 18 days).

      (RM2300/30) x 18 = RM1380, (RM500/30) x 18 = RM300.

      Reply
  17. laiyin

    Hi,

    Shall I calculate the overtime base on calender month (I mean number of days for each month) insted of 26 days?

    Appreciate for your prompt reply.

    Thaks….

    Reply
  18. nita

    e.g. Salary RM800.00 per mth, working from Mon to Sat. So 800/26=30.80 daily rate, 30.80/8=3.85 hourly rate.
    a) Total OT for 1 mth is 104.40 hr (normal day)
    b)3 hr (1st rest day)
    c) 10 hr (2nd rest day)
    The calculation :-

    a) 104.40 x 3.85×1.5 = 602.91 (normal day)
    b) 15.40
    c) 30.80+15.40 = 46.20
    Total = 649.11
    Isit correct?pls reply
    thanks

    Reply
  19. NG

    I have been getting OT pay even though I am earning more than RM1500/ month as my basic salary. All these while, my OT of about 120 hours/ month have been approved and paid for without any further question (I am extremely over-loaded).

    However, after I tendered my resignation letter, my superior cut my OT payment by 50% (reason given by her: not justified) during my notice-serving period. Can I know what kind of legal action can I take if my superior insists not to approve my OT payment in full?

    Thanks much!

    Reply
  20. TM

    For an example, our employee who start work at saturday 9pm to 12pm, how is the OT calcuration.??after read your article, i don’t quit understand the OT calcuration as above.

    Reply
  21. Iezan

    I have one question about OT.

    I need clarification from you on this..one employee work as security guard on Saturday and his OT start on 6.49 pm and finish on Sunday at 15.00 pm. He need to cover two shift due to no enough staff on that day.

    My question is the OT should based on saturday rate (normal rate) or half hour based on sunday rate another rate based on normal hour. for instance:- 12.00 midnight until 15.00 pm based on sunday rate and 6.49pm until 12.00 midnight based on normal hours (saturday).

    I need your advice on this which rate i should follow.

    Thanks

    Reply
  22. Catherine

    Hi there,

    My company has a driver. Since his job as driver has reduced tremendously, we have requested him to do despatch work as well. However, lately, his claims for despatch has increased a lot. Hence we would like to give him a fixed allowance. I’m preparing a letter changing his designation from: Driver to Driver cum Despatch. In my letter, his salary will be revised as follows: Basic RM1540 + Fixed allowance RM250. My Q: Do I need to specify what the fixed allowance covers? Actually, the fixed allowance will be for mileage, toll, parking, meals, etc.

    Reply
  23. george

    i was recently offered a job at 34,300 per year, which is a 50 hour work week, although 10 of those hours are ot, so i’ll be paid for 55 hours accounting for the time and a half, what is my actual hourly and ot hourly rates? please help i cannot figure this out! thank you!

    Reply
  24. Amb

    The question is :

    MY basic = RM 3000
    **but our company suddenly change the rules that all workers whoever basic salary more than RM1500, will be pay only max RM 11/hour for OT on weekdays. Is this against any labour law?

    thank you.

    Reply
    1. Zul

      Generally, those with salary above RM1500 are not covered under the Employment Act 1955.

      However, any change on existing employment terms (e.g. remuneration) must be agreed and consented by the workers. Normally, it comes through a memo where the worker signs to indicate their agreement with the new terms.

      The problem here is not so much on ‘against any labour law’, but rather on how the change is implemented and whether the workers are being well informed on the reason/justification of the change.

      Reply
  25. Stan

    Hi,
    Lets say my basic salary is RM 1200 + allowance RM 300
    If i work on restday for 10 hours. So how to calculate my overtime wages ?

    Reply
  26. Madam Hoo

    Hi,
    My working hours per week are 48hours. My basic salary is RM 4500 per month. Do this mean that i am not cover by any labour law?
    My company only pay me RM15 per hour for OT, is it fair as OT rate by law?
    Can i refuse to do OT?
    Thanks.

    Reply
  27. Rini

    But rest day will be paid double & public will be paid triple.so rest day will be paid 2 times the normal hourly rate and public 3 times the normal hourly rate.Based yr example : 2 x RM 46.15=RM 92.30(for Sunday). It is right?

    Reply
  28. me

    In the contract, they did mention the shift will be split into 3 categories:
    1. Normal shift (reimbursement RM60)
    2. Split shift (reimbursement RM200)
    3. Night shift (reimbursement RM350)

    My cut off date is 24th every month. If I have done 5 split shift on 26th, 27th, 6th and 9th. How do they calculate my OT paid. Let say 26th and 27th have 30 days in a month and 26 and 27 will have 31 days in a month.

    1. they calculation for normal shift allowance: 60/30*(how many days working for normal shift for the month with 30 days) and 60/31*(how many days working for normal shift for the month with 31 days), so the answer will be normal shift reimbursement per day
    2. split allowance will be calculated with 200/30*(how many days working for normal shift for the month with 30 days) and 200/31*(how many days working for normal shift for the month with 31 days).
    Is it correct? Thanks

    Reply
  29. manjula

    Please explain to me how we calculate rest day overtime for daily pay/ wages.
    What is the standard rate if they work normal hours and excess hours.

    Thanks.

    Reply
  30. Mazlina binti Mustapha

    Dear Sir,

    1) What is the correct procedure in calculating wages for a full time permanent employee?
    2)

    Reply
  31. Mazlina binti Mustapha

    Dear Sir,

    1) When an employee joined a company for a full time basis & permanent, will his rest day be calculated as his wages?
    2) How to calculate wages for employees who joined the company less than a month?
    3) How to calculate employees overtime?
    4) How to calculate employees on unpaid leave?

    Thanks

    Reply
  32. Tajuddin

    M confused , On saturday , our working hours are from 8.00 am – 12 noon.
    Customers required to do overtime . Should it be calculated from 12.01 till job finished. or ,
    from 1.00 pm till job finished. ( 12.00 to 1.00pm considered lunchbreak ) plse reply ………

    Thanks.

    Reply
  33. Mrs. Chan

    Dear Sir,

    What is the actual way to calculate for staff daily pay? actual working days (22 depending on the month) or based on number of days in the month (30 or 31)?
    My previous company calculated based on no of working days (Monday – Friday for the entire month).
    However my current company calculates based on number of days in the month eg: 30 or 31 day.
    This has left me confused and Im uncertain what is the correct calculation.

    At the same time, is it right to deduct allwances as well when deducting unpaid leave.

    Urgently require some advise.

    Thanks!!

    Reply
  34. Malar

    If an employee working Monday to Saturday. Saturday working on half day. If this employee would takeno pay leave on Saturday. If the monthly salary is RM1000.00. What will be the amount deducted for the Saturday no pay leave taken?

    Reply
  35. poor thing

    Hi,

    I wonder what shall i do as my boss have me work 7 days a week and no O.T. ? Weekday working hour 9am – 6pm, sometimes Fri work till 12 midnight….Sat – Sun 9,30am – 7pm or 8ish… Please advise, thanks!!!

    Rgds,
    poor thing

    Reply
  36. joanne

    i just stated work wt current company (already 2 months) and my salary is $1,600.00.
    the company said their confirm me by 31st dec 2009, and i heard i will get a bonus (by pro-rated).
    how their calculate this?

    Reply
    1. Zul

      Talk to them how do they do this. Roughly (remember this is ROUGH and not the exact mechanism), if the company gives a 1 month bonus, then prorated to one month you get $1,600/12. If you work there a full two-month, you get ($1600/12)x2 which is about $266++.

      Reply
  37. Abby

    Dear Sir,

    Kindly check if what we calculate OT in our co. is correct and pls revert : –

    Satff salary given 750.00 (Mon to Fri : 9.00 to 5.30)

    Overtime on Sunday 14 hrs : paid 72.11
    Overtime on Saturday 10 hrs : paid 54.10
    Public Holiday 11.5 hrs : paid 54.09

    and 1 day rest leave is given if he works on public holiday.

    Will appreciate if you could check and reply. I really need your help on this.

    Reply
  38. zen

    I would like to know if a person works from 10am – 8pm per day, with 1 hr break for lunch and 1 hr break for dinner, do you consider this as working 8 hrs or 10 hrs?
    I wanna know should i divide the daily wage by 8 or by 10 to get the hourly rate.
    thanks!

    Reply
  39. Chye

    Dear Sir

    Working hours: 9am – 7pm (1pm – 2pm is lunch hour)
    Working days: Monday – Friday (Saturday & Sunday off)
    Monthly Salary: RM1000 per month

    Is there any overtime pay for the above? as the labour law stated that not more that 8 hours of working in one day, did I break the law?

    Pls reply urgently. Thank you.

    Reply
  40. suganthi

    Dear Sir,

    Working hours: 9am – 7pm (1pm – 2pm is lunch hour)
    Monthly Salary: RM800 per month
    If i working overtime like after 7pm to 9pm
    how their OT calculate this?

    Reply
  41. Mwasamani Gunda

    Hello sir,
    I have a sample excel for calculating overtime.
    a,b,c, are the column labels.1,2 are the row titles
    The formula is =d2*(b2*1.5).
    My question is, what is the 1.5 standing for.
    I cant explain the logic

    a b c d e
    1Name Rate/Hr Hours Overtime Hrs Otimepay

    2Moris 16.75 42 2.0 =d2*(b2*1.5)

    please help.

    Reply
  42. Suki

    Dear Sir,

    I would like to know if:-
    * our company working time (Mon – Sat full day, 8.30am to 5.30pm), if the worker late to arrived to company & work ot at the night, how should i calculate their OT? Lets say this worker’s wages is RM 1,400.00. She arrived at 10.30am and works until 6.30pm. so how to calculate it? thanks a lot.

    Suki

    Reply
  43. LK

    Dear Sir,

    Shall a warehouse supervisor entitle for OT claims if his basic salary already RM 2000.

    If yes, how to calculate.

    Thanks, Urgent

    LK

    Reply
  44. Mr tan

    Dear sir,

    I would like to know if:-
    1) our company 5 working days (Mon – fri full day, 8.30am to 6.00pm), Lets say this worker’s wages is RM 1,200.00. if this worker work OT 6 hrs,how to calculate it?
    2)if a company hiring a worker ,the worker draw RM 2400/mth ,6 rest day in a month,working hrs is (10.00am to 9.00pm), if this worker transfer to other branch working hrs from 10 a.m to 11 a.m how to calculate it the OT rate for this 2 hrs?

    thanks & regards

    thanks a lot

    Reply
  45. Lina

    Hi, I am a music manager with a salary of 2000 but i work alot of extra hours in the week and weekend but I dont get paid for those extra hours. Is this right?

    Reply
    1. Zul

      If it is agreed (preferably with documented support such as memo, employment letter etc) that you are entitled (or can claim), then you can talk to them. At more than RM1,500 salary, you’re not automatically covered for OT, unless there’s prior agreement with employer.

      Reply
  46. niza

    sori, tak perasan la ada comment utk 2009 & 2010.

    saya bekerja di kilang frozen foods dan musimraya kami akan buat kuih raya. monthly salary saya rm800.waktu kerja 9-5 dan tiada waktu rehat tetap selama 1 jam. berhenti makan n solat biasanya tak sampai 1 jam.rest day saya pd hari jumaat.
    bila musim raya , gaji saya akan jadi rm1200 dan kena kerja hari jumaat. maknanya x de cuti. biasanya sampai pukul 12 mlm.
    soalan saya ?
    1.) kadang2 saya kena kerja pd jumaat dan akan tukar cuti pada hari lain, bolehkah buat macam ni?
    2.)klau dlm satu2 bulan ada public holiday, mcm mana nak kira gaji saya?
    3.)adakah gaji saya masa musim raya dah termasuk dengan upah kerja pada rest day sebab bos tak cakap apa2,tapi bila saya cakap pasal OT, bos bagi fixed rate rm5/jam, boleh ke kira macam tu sebab ikutkan gaji raya blh dpt lebih lagi?
    4.) biasanya raya, kilang akan cuti panjang dlm 2 minggu, sya juga tidak diberi annual leave dan pada bulan tersebut biasanya saya tak dpt gaji penuh, betul ke cara kira gaji tersebut

    Reply
  47. Tan

    I wish to know,
    Temporary workers have overtime salary pay rate or not?
    Can you show me any website or any article in the Constitution of Malaysia or any act under Malaysia Law?
    Thanks.

    Reply
  48. Ss

    Hi,

    [QUOTE]
    “You are covered under the Malaysia’s Employment Act 1955 if your monthly salary is RM1500 or below.”
    [/QUOTE]

    The law doesn’t cover those has the earning RM1501 and above?

    Reply
  49. wong

    Hi ,
    How to calculate of summary OT by hours and percentage?

    1)workers no. 1
    Total ot hrs from Jan -May as 259hrs

    2) workers no.2
    Total OT hrs from Jan-May as 200hrs

    3) workers no.3
    Total OT hrs from Jan-May as 144.5

    whether I can count like:-
    26day*8hrs=208hrs *5month=1040day
    259hrs workers no 1./1040day=0.31%

    It’s right?

    Pls need from your help.TQ

    Reply
  50. apple

    hi..My company decided to not calculate ot for 1(6-7) or 1.5 hour.Only allowed to calculate 5pm to 7 pm as ot 2 hours.Is that correct?and can an employer fixed ot limit?

    Reply
  51. zulkifli othman

    As prescribed above, overtime salary is eligible for employee earned RM1500 or below monthly. So, how about us who earned RM4000 monthly but still needs to perform overtime work in excess of the normal hours of work? In section 60 (3)(a)(b) legally no limitation of salary specified.! Currently I am attached to YTL company which is paying us Meal allowances in lieu of overtime which are RM 25 (normal days) RM50 (rest day) and RM 70 (public holiday) and we have to work 4 consecutive hour for the above. Is this breaching the employment act 1955?? We have the company’s Manual but neither the overtime nor meal allowances clauses are included.

    Reply
  52. Andy

    Dear sir, ask such OT pay out we do calculate the OT rate base on basic given? Does it appropriate if company pay OT according to rate given by management to prorate the the rate. Does it allowable for company to fix OT rate not refering to basic?

    Reply
  53. Nanthini

    Dear Sir,

    My salary is RM2,200. If i do OT, my company fixed RM20 for 2 hours and RM5 extra hours. I feel that its really not fair because the same rate used for those salary which is RM1500 & above. Please advice me on this.

    Helpless….

    Reply
  54. Tan

    Dear Sir,
    I would like to seek your advice. Our company applies the formula below for OT calculation:

    Saturday & Sunday (which we require to work for 6 hours)
    hours of work (x) 1.5 divided by 173.33 (x) basic salary

    Public Holiday (8 hours)
    hours of work (x) 2 divided by 173.33 (x) basic salary

    Question:
    Why is it divided by 173.33? Kindly let us know whether the calculation is correct?

    Please see below explanation from our company for your reference:

    ‘There are 365/366 days in a year of which 104 to 106 days of week ends (52/53 weeks in a year). Thus there are 260 days left for work during 12 months or on average 21.66 days per month or 21.66 x 8 = 173.33 hours per month on average. The same figure (173.33) is also obtained by calculating 52 (weeks) x 40 (hours/week) / 12 (months).’

    Reply
  55. RAMU

    Dear sir,
    iam basic accounting for monthly salary…
    my office working days 7*9(7days 9 hours)..
    on OTS any simple formula..

    Thanks in advance….

    Reply
  56. Nobody

    Dear Sir,

    Hi, wonder to know that can company deducted of overtime for lateness? Instead deducted of overtime, shall the company deducted on the basic salary?

    Reply
  57. nurul

    Dear Sir,

    I’m working as a nurse aid with the basic payment RM900 not including allowance. Should I add basic payment and allowance as my salary? I just confused to calculate my OT. Could you give me an example of the calculation based on my salary?

    Reply
  58. Nesh

    Im an employer paying basic rm500 for security guards. They have 4 hours daily OT.

    so their basic 500/26=19.23(per day)/8 =2.4(per hour)

    Their OT will be 2.4*1.5= 3.6(per hour) as daily they are doing for 4 hours total will be 3.6*4= 14.4(per day).

    My Question is :

    1) How much do I have to pay if they working on their off day??

    2) How much do I have to pay if they are working on public holidays?

    (please let me nkow the calculating formula as well)
    Thank You.

    Reply
  59. tina

    hi,
    i am an admin clerk basic around 1200.
    office hour 8 am to 5pm.(mon – Fri)
    lunch 12.30 pm to 2pm

    and saturday (8am – 1pm)

    every thursday night my company having trainings, so i am to stay in the office up to at least till 10pm .
    how much would be my o.t?

    and may i know rate if on sunday?

    and public holiday?

    thanks

    Reply
  60. ctchanteq

    sir,

    my company hired a driver on 9th of May and earnings RM 1,600 per month. right now i’m preparing his May salary which is RM 1,600 / 23 days = RM 69.56 per day. is that correct if i calculate his salary RM 69.56 x 8 days = RM 556.48 consider his unpaid leave?

    our working days is mon – friday, 8.30 am – 5.30 pm..

    thank you

    Reply
  61. mandy

    may i know tat is it all company must have Annual Leave ?
    and how about the payment for OT?
    thx for kindly reply

    Reply
  62. Ms Leow

    Sir,
    I works as a Part Timer 3 days per week and my pay is RM 1,500.00 per month. So I like to know how to calculate the pay per day…

    Is it : RM 1,500.00/only 12 days per months
    =RM 125.00 or
    RM 1,500.00 / 26 days = RM 57.69

    Reply
  63. Ms. Voo

    Is there any specific law that mentioned after 8 hours working (normal working hours), employee are entitle for 1 hour OT even doesnt reach one hour? Previously my company, 15mins after 5pm we are entitle for 1 hour of OT, after some times, it was dragged to after 31mins only will be entitle for 1 hour OT. Believe in the next future, none at all except if we work sharp for the extra 1 hour. Let say, today i go home 5.45pm, i only will be paid for 45mins. Tomorrow i go home 5.30pm, i will only be paid 30mins. during closing, all the mins will be calculated and i will only have 1 hours OT. 15 mins cannot be considered as it doesnt reach 1 hour.

    Reply
  64. kumar

    dear sir, before my working hour is 7am to 3pm and ot until 7pm(4hours x 1.5).but now our company change the rules that working hour should be 7am to 4pm(9hours)..and ot for 3 hours only..the reason is the 1 hour rest cant be paid.we need do extra 1 hour for make 8 hour working day.please advice wheather the rules is follow labour law.thanks

    Reply
  65. Jeremy

    I noted that this question has been asked above, but I didn’t not find any absolute answer.

    With respect to overtime, I understand what the employee is entitled to. But in concluding how this is actually reflected in their pay slip I’m a little confused.

    If an employee is entitled to 2 x basic for work on holiday. BUT that holiday is inclusive over their 26 days (and not additional to it). Then isn’t the basic already covering 1 x, which means that the overtime will only be 1x.

    In other words, using the example in your post, the answer to question 1. would be RM46.15, since the ‘other’ 46.15 is already included in the basic?

    So for the example employee on a basic salary of RM1200 who work 6 hrs on 1 public holiday, would his salary for that month not be RM1246.15 (Rm1200 + RM46.15 overtime)??

    Reply
  66. charlie

    I work for 12 hrs plus o/t. my company deduct 1 hr for break from my o/t.Am I entitle for 1hr of paid rest?

    Reply
  67. Ais

    how to calculate on public holiday.. urgently
    (working hour :8am to 5pm after 5pm is OT)
    exmple: 2000/mth /26days = 76.92
    working on public holiday is 76.92 * 2 = 153.85 or
    how????

    Reply
  68. kumar

    1) my cousin company only pay x1.0 for first 8 hour and x2.0 for the next 3 hour for working on rest day is it obey the law?
    2) working hour is 7am to 7pm but never given a paid rest time and the rest time deducted from OT hours daily. Need to work 9 hours per day and extra 3 hours for OT

    Please we need some clarification.Tq

    Reply

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