Ot Calculator Malaysia Malaysia Salary

Overtime Pay Formula:

\[ \text{Overtime Pay} = \left( \frac{\text{Salary}}{26 \times 8} \right) \times \text{Overtime Hours} \times 1.5 \]

Overtime Pay:

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1. What is Overtime Pay Calculation?

Overtime pay calculation in Malaysia is based on the Employment Act 1955, which specifies that overtime work should be compensated at 1.5 times the hourly rate for work beyond normal working hours.

2. How Does the Calculator Work?

The calculator uses the standard overtime formula:

\[ \text{Overtime Pay} = \left( \frac{\text{Monthly Salary}}{26 \times 8} \right) \times \text{Overtime Hours} \times 1.5 \]

Where:

Monthly Salary — Employee's monthly salary in MYR
26 — Number of working days in a month
8 — Number of working hours per day
Overtime Hours — Number of overtime hours worked
1.5 — Overtime rate multiplier

Explanation: The formula first calculates the hourly rate by dividing the monthly salary by the total working hours in a month (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, prevents underpayment or overpayment, and maintains fair compensation for employees working beyond normal hours.

4. Using the Calculator

Tips: Enter monthly salary in MYR and overtime hours in decimal format (e.g., 2.5 for 2 hours 30 minutes). All values must be valid (salary > 0, overtime hours ≥ 0).

5. Frequently Asked Questions (FAQ)

Q1: Is this calculation applicable to all employees in Malaysia?
A: This calculation applies to employees covered under the Employment Act 1955. Some categories of employees may have different overtime arrangements.

Q2: What if an employee works on rest days or public holidays?
A: Different rates apply for work on rest days (2.0 times hourly rate) and public holidays (3.0 times hourly rate). This calculator only covers normal overtime.

Q3: Are there maximum overtime limits in Malaysia?
A: Yes, the maximum overtime allowed is 104 hours per month under normal circumstances.

Q4: How is the 26 days per month determined?
A: This is based on the standard calculation of 365 days per year ÷ 14 days of annual leave = 26 working days per month.

Q5: Does this calculation include EPF and SOCSO deductions?
A: No, this calculation shows gross overtime pay before any deductions. Actual take-home pay may be lower after statutory deductions.