Your pay and hours
Use your monthly wages as defined in your contract, without overtime, bonus or expense claims.
How it is worked out
Ordinary rate of pay = monthly wages ÷ 26. Hourly rate = ordinary rate ÷ normal hours a day. Overtime on a normal day is paid at 1.5 times the hourly rate.
- Normal hours: up to 8 hours a day and 45 hours a week, within a spread of 10 hours (section 60A).
- Rest day, monthly-rated staff: up to half a day's work earns half a day's wages; more than half earns a full day's wages; hours beyond normal hours earn 2 times the hourly rate (section 60(3)).
- Public holiday: working on a paid public holiday earns 2 days' wages on top of the holiday pay; hours beyond normal hours earn 3 times the hourly rate (section 60D).
- Paid public holidays: 11 gazetted days a year.
Who is covered
The overtime, rest day and holiday pay sections apply to employees earning up to RM4,000 a month, and to manual workers, drivers and domestic workers at any pay.
- Above RM4,000 in a non-manual job, the First Schedule excludes you from sections 60(3), 60A(3), 60C(2A) and 60D(3) and (4). Overtime then depends on your contract. The calculator shows the formula result so you can compare.
- Sabah and Sarawak have their own Labour Ordinances with similar but not identical rules.
Annual leave under the Act
| Length of service | Days of annual leave a year |
|---|---|
| Less than 2 years | 8 |
| 2 to less than 5 years | 12 |
| 5 years or more | 16 |
Common questions
How is overtime calculated in Malaysia?
Monthly wages ÷ 26 gives the ordinary rate of pay for a day. Divide by your normal hours (usually 8) for the hourly rate, then pay 1.5 times for overtime on a normal day, 2 times for hours beyond normal hours on a rest day, and 3 times on a public holiday.
Why divide by 26 and not by the days in the month?
Section 60I fixes 26 as the divisor for monthly-rated employees, whatever the month. It assumes a six-day working week with four rest days.
Is there a limit on overtime hours?
The Employment (Limitation of Overtime Work) Regulations 1980 limit overtime to 104 hours a month unless the Director General approves more.
Does allowance count in the ordinary rate?
Wages under the Act means basic wages and all other cash payments for work done, but not travel, housing or expense allowances, bonuses or gratuities. Check which of your allowances count.
Sources
Employment Act 1955
- Employment Act 1955 (Act 265), JTKSM consolidated text: sections 60 (rest days), 60A (hours and overtime), 60D (holidays), 60E (annual leave), 60I (ordinary and hourly rate of pay) and the First Schedule.