Malaysia overtime calculator

The formulas (monthly-rated employees)

• Ordinary rate of pay = monthly wages ÷ 26.
• Hourly rate = ordinary rate ÷ normal hours per day.
• Overtime on a normal day: at least 1.5 × the hourly rate for each hour beyond normal hours.
• Rest day: up to half the normal hours, half a day’s pay; more than half up to the normal hours, one day’s pay; beyond normal hours, 2 × the hourly rate.
• Public holiday: 2 days’ pay on top of the holiday pay; beyond normal hours, 3 × the hourly rate.

Worked examples

Employee on RM3,000 a month with an 8-hour normal day. The ordinary rate is RM3,000 ÷ 26 = RM115.38 a day, and the hourly rate is that divided by 8 = RM14.42.

The public holiday figure is the extra pay for working the day; the employee also keeps the usual holiday pay. These are minimum rates for monthly-rated staff covered by the Act, so check the contract in case it promises more.

Common overtime mistakes

• Dividing by the wrong number. The ordinary rate of pay for monthly-rated staff is wages ÷ 26, not ÷ 30 or ÷ 22. The wrong divisor makes every overtime hour slightly too cheap or too dear.
• Assuming a manager is exempt. The RM4,000 monthly wage line is what decides coverage for most office staff, not the job title. A supervisor on RM3,800 is covered; a manual worker above the line may still be.
• Approving overtime after the fact. If staff regularly work extra hours with no sign-off, you lose track of the 104-hour monthly cap. Agree the hours in advance and record them the same week.
• Paying late. Overtime is due within 7 days after the end of the wage period. Put it on the payroll calendar, not in someone’s memory.
• Using overtime as a staffing plan. Overtime that happens every month is a signal about workload or headcount. Look at the cause before it becomes a retention problem.

Questions managers ask about overtime

Does time off in lieu replace overtime pay?

Not automatically. The Act sets minimum pay rates; if your company offers time off instead, make sure the contract or an agreement says so and that the employee is not worse off. When in doubt, ask HR or the Labour Department.

Do on-call or travel hours count?

That depends on what the employee is required to do and where. Treat it as a question for the contract and the Labour Department, not something to decide in a chat message.

What if the employee earns above RM4,000?

For most office staff the statutory overtime rates then stop applying, but the employment contract or company policy may still give overtime pay. The calculator shows a reminder when wages are above the line.

Limits and good practice

• Normal hours are at most 8 a day and 45 a week.
• Overtime is capped at 104 hours a month.
• Pay overtime within 7 days after the end of the wage period.
• If overtime is regular, look at workload and staffing before it turns into burnout. The workload check-in helps.