Malaysia Overtime Calculator

According to Section 60A(3)(b), overtime is defined as the number of work carried out more than the normal hours per day. Naturally, the next question here would be: what are the "normal hours" of daily work?

It's fairly straightforward: the normal hours of work are usually agreed upon in the contract of service — although these daily hours should not exceed a couple of limits, according to S.60A(1):

• more than five consecutive hours without a period of leisure of not less than thirty minutes duration;
• more than eight hours in one day;
• in excess of a spread over a period of ten hours in one day;
• more than forty-eight hours in one week.

Additionally, it's important for employers to note that there is a hard limit to overtime work. According to the Employment (Limitation of Overtime Work) Regulations 1980, employees in Malaysia are only allowed to work overtime for a total of 104 hours in any month.

This comes to an average of under four daily overtime hours per calendar month, so you'll need to closely monitor all your employees' total hours.

For example, an employee who works 8 hours a day for a monthly salary of RM2,600.00:

1. They will have an ordinary rate of pay of RM100 (RM2,600 / 26 = RM100).
2. The same employee's hourly rate of pay would be RM12.50 (RM100 / 8 hours = RM12.50)

In the event that an employee was asked to work on a public holiday during their normal working hours, their overtime pay for that day would be RM200 (RM100 x 2).

Do note that employees not under the Employment Act are not entitled to overtime payments.

In Malaysia, there are two categories of employees with regards to overtime pay in Malaysia: employees who are covered by the Employment Act 1955, and those who are not.

For the latter (**a non-exhaustive list of those governed by the Act), overtime hours and calculations for the latter group depend on the terms and conditions agreed upon in their respective employment contracts.

• Employees who earn monthly wages of RM2,000 or less.
• In January 2023, when the new Employment Act amendments come into force, all employees with wages up to RM4,000/month will be entitled to overtime payments.
• Employees who — regardless of monthly wage — are engaged in manual labour.
• Domestic servants.
• And other categories of employees within the First Schedule of the EA 1955.

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):
   1. Where work does not exceed half his normal hours of work: ½ the ordinary rate of pay* for work done on that day.
   2. Where work is more than half but does not exceed normal work hours: 1 full day's wages at the ordinary rate of pay*
3. Rest day (working in excess of normal working hours): 2x hourly rate of pay**
4. Public Holiday (follow normal workings hours): 2 days wages at ordinary rate of pay*
5. Public holiday (excess of normal working hours): 3x hourly rate of pay**

* "Ordinary rate of pay" - employee's “daily” wage, which is calculated by dividing the employee's monthly salary by 26.

** "Hourly rate of pay" - the ordinary rate of pay divided by the normal hours of work.

In general, payments such as Shift Allowance, Call Back Allowance, Attendance Allowance, and Acting Allowance are subject to Wages, and they must be considered in overtime calculation. But unfortunately, at this time, we don't have any tools to support the allowance calculation because the feature is still in the works. So keep an eye on this page for updates!

Full-time EA Employee
With full-time EA Employees, it is an offence under the EA 1955 for non-payment of overtime wages by the employer. Upon conviction, the employer will be ordered by the court to pay the EA Employee concerned the overtime wages due, and the same shall be recoverable as if it were a fine imposed by such court.

Part-time EA Employee
Whereas for part-time EA Employees, any employer who fails to pay any part-time EA Employee for any work done beyond his/her normal hours of work and/or for any work done on a public holiday, commits an offence and shall, on conviction, be liable to a fine not exceeding RM10,000.00.

So to avoid these, remember to use our tool and pay your staff if they work overtime!