Overtime

Non-Executive employee is entitled to claim Overtime (OT) Pay for work performed in excess of normal hours of work on week days, off days, rest days or gazetted public holidays.

1. Overtime claim must be approved by the supervisor or head of department to be deemed valid.
2. For overtime pay, the employee shall be paid at a rate of 1.5x on normal working days or 2.0x on public holidays.
3. For details on how to calculate OT duration involving flexible meal break, refer to here for examples.
4. The schedule of overtime payments shall be in accordance to the payments stipulated under the Employment Act 1955.

Normal Work Days

See below for examples on the overtime calculation for permanent employee.

Example 1

An employee with RM 1,500 salary who worked for 4 hours OT.

Monthly Salary: RM 1,500
Normal working hours: 7.5 hours / day
Overtime: 4 hours

Ordinary rate of pay (daily)
    = Monthly salary / 26
    = RM 1500 / 26
    = RM 57.69 / day

Hourly rate of pay
    = Ordinary rate of pay (daily) / Normal working hours per day
    = RM 57.69 / 7.5 hours
    = RM 7.69 / hour

Overtime earnings
    = Hourly rate of pay x overtime hours x 1.5
    = RM 7.69 x 4 hours x 1.5
    = RM 46.14

Example 2

An employee with RM 1,800 salary who worked for 6 hours OT.

Monthly Salary: RM 1,800
Normal working hours: 7.5 hours / day
Overtime: 6 hours

Ordinary rate of pay (daily)
    = Monthly salary / 26
    = RM 1800 / 26
    = RM 69.23 / day

Hourly rate of pay
    = Ordinary rate of pay (daily) / Normal working hours per day
    = RM 69.23 / 7.5 hours
    = RM 9.23 / hour

Overtime earnings
    = Hourly rate of pay x overtime hours x 1.5
    = RM 9.23 x 6 hours x 1.5
    = RM 83.07