Work out your overtime pay under the Employment Act: working-day OT, rest days and public holidays, from your monthly salary.
Overtime and extra pay this month
RM 187.50
On top of your RM 2,600.00 salary · 10 overtime hours
Overtime and extra pay this month: RM 187.50
These are the minimum rates the Employment Act guarantees you. Your contract can pay more, not less.
RM2,600 salary, 10 OT hours
RM2,600 ÷ 26 ÷ 8 = RM12.50 an hour × 1.5 × 10 hours.
RM187.50 overtime
Same salary, 1 public holiday worked
Two days' pay (2 × RM100) on top of your holiday pay.
RM200 extra
How the figures above are worked out — the rules, rates and reasoning behind every line.
For a monthly-paid employee, the Employment Act sets the daily rate as your monthly salary ÷ 26, and the hourly rate as that ÷ your normal hours per day. Overtime is then paid at a multiple of the hourly rate.
These rates are guaranteed to employees earning up to RM4,000 a month and to manual workers. If you earn more, overtime depends on your contract, but many employers still use the same rates.
Working days: at least 1.5 × your hourly rate for each hour beyond your normal hours.
Rest days: half a day's pay if you work up to half your normal hours, a full day's pay if you work more, and 2 × the hourly rate beyond your normal hours.
Public holidays: two days' pay on top of your normal holiday pay, however short the work, and 3 × the hourly rate beyond your normal hours.
Overtime is capped at 104 hours a month.
Divide your monthly salary by 26 for the daily rate, then by your normal hours per day for the hourly rate. Working-day overtime is 1.5 × that, rest-day overtime 2 × and public-holiday overtime 3 ×. On RM2,600 and 8-hour days, that's RM12.50 an hour and RM18.75 per OT hour.
The Employment Act only guarantees overtime pay to employees earning up to RM4,000 a month and to manual workers. Above that it depends on your employment contract.
Section 60I of the Employment Act fixes the ordinary rate of pay for monthly-paid employees as the monthly salary ÷ 26, which leaves out the four rest days in a typical month.
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