1. What is Overtime Pay Calculation?

Overtime pay calculation in Malaysia for 2025 follows the standard formula based on monthly salary and overtime hours worked, providing fair compensation for additional work hours beyond normal working hours.

2. How Does the Calculator Work?

The calculator uses the overtime pay formula:

Where:

• Monthly Rate — Monthly salary in MYR
• 26 — Average number of working days per month
• 8 — Standard working hours per day
• Overtime Hours — Additional hours worked beyond normal working hours
• 1.5 — Overtime multiplier rate

Explanation: The equation calculates the hourly rate from monthly salary, then applies the standard 1.5x multiplier for overtime hours worked.

3. Importance of Overtime Calculation

Details: Accurate overtime calculation ensures fair compensation for employees and compliance with Malaysian labor laws and regulations for 2025.

4. Using the Calculator

Tips: Enter monthly salary in MYR and overtime hours worked. All values must be valid (monthly rate > 0, overtime hours ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 26 and 8 in the formula?
A: 26 represents the average working days per month, and 8 represents standard working hours per day, used to calculate the hourly rate.

Q2: Is the 1.5 multiplier standard for all overtime?
A: In Malaysia, 1.5x is the standard rate for normal overtime hours. Different rates may apply for public holidays and rest days.

Q3: Are there different overtime rates in Malaysia?
A: Yes, rates may vary for work on rest days (2.0x) and public holidays (3.0x) according to Malaysian employment regulations.

Q4: Is this calculation valid for all employment sectors?
A: While the formula follows standard practice, specific employment contracts or collective agreements may have different provisions.

Q5: How often should overtime be calculated?
A: Overtime should be calculated for each pay period, typically monthly, based on actual hours worked beyond normal working hours.