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Overtime Formula:
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Overtime calculation in Malaysia follows specific regulations set by the Employment Act 1955. For 2025, the standard overtime rate is 1.5 times the hourly rate for work beyond normal working hours.
The calculator uses the standard Malaysian overtime formula:
Where:
Explanation: The formula first calculates the hourly rate by dividing the monthly salary by the average number of working days (26) and standard working hours per day (8), then multiplies by overtime hours and the 1.5 multiplier.
Details: Accurate overtime calculation ensures compliance with Malaysian labor laws, prevents disputes between employers and employees, and guarantees fair compensation for extra work hours.
Tips: Enter the monthly salary in MYR and the number of overtime hours worked. Both values must be valid (monthly rate > 0, overtime hours ≥ 0).
Q1: Is the 1.5 multiplier always applicable?
A: For normal workdays, yes. For rest days and public holidays, different multipliers apply (2.0x and 3.0x respectively).
Q2: Why divide by 26 days?
A: 26 is the standard number of working days used in Malaysian payroll calculations, based on a 6-day work week.
Q3: Are there different rates for different industries?
A: The basic 1.5x rate applies to most industries, but some sectors may have specific provisions in their collective agreements.
Q4: How is overtime calculated for shift workers?
A: For shift workers, overtime is typically calculated based on their contractual working hours rather than the standard 8-hour day.
Q5: Is there a maximum limit on overtime hours?
A: Yes, Malaysian law limits overtime to 104 hours per month to protect workers' health and wellbeing.