1. What is Overtime Pay Calculation?

Overtime pay calculation in Malaysia follows the Employment Act 1955, which mandates that employees receive 1.5 times their hourly rate for overtime work beyond normal working hours.

2. How Does the Calculator Work?

The calculator uses the standard Malaysian overtime formula:

Where:

• \( \text{Monthly Rate} \) — Employee's monthly salary in MYR
• \( 26 \) — Average number of working days per month
• \( 8 \) — Standard working hours per day
• \( \text{Overtime Hours} \) — Number of overtime hours worked
• \( 1.5 \) — Overtime multiplier as per Malaysian law

Explanation: The formula first calculates the hourly rate by dividing the monthly salary by the total monthly working hours (26 days × 8 hours), then multiplies by overtime hours and the 1.5 multiplier.

3. Importance of Overtime Calculation

Details: Accurate overtime calculation ensures compliance with Malaysian labor laws, proper employee compensation, and avoids legal disputes. It's essential for both employers and employees to understand correct overtime computation.

4. Using the Calculator

Tips: Enter the monthly salary in MYR and the number of overtime hours worked. The calculator will compute the overtime pay according to Malaysian regulations. Ensure all values are positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: Is the 1.5 multiplier standard for all overtime in Malaysia?
A: Yes, according to the Employment Act 1955, overtime work must be paid at 1.5 times the hourly rate.

Q2: Why divide by 26 and then by 8?
A: This calculates the hourly rate based on 26 working days per month and 8 working hours per day, which is the standard in Malaysia.

Q3: Are there different rates for weekends or public holidays?
A: Yes, work on rest days or public holidays has different rates (2x and 3x respectively), but this calculator focuses on regular overtime.

Q4: Is there a maximum limit for overtime hours?
A: Yes, Malaysian law limits overtime to 104 hours per month to protect workers' health and wellbeing.

Q5: Does this calculation apply to all employees in Malaysia?
A: The Employment Act covers most employees, but some categories (managers, executives, professionals) may have different arrangements in their contracts.