Day rate

Pay per day and per hour

Monthly wages divided by 26, then by the normal hours. The calendar month divided by 30 is shown so it is not mistaken for the Act.

Day and hour

Section 60I

People ask for a per-day rate and a per-hour rate as if both were the salary divided by something obvious. For a monthly employee the Employment Act 1955, section 60I, is specific. The ordinary rate of pay for one day is the monthly wages divided by 26. The hourly rate is that ordinary day divided by the normal hours of work. It is not the monthly wage divided by 30, and it is not the wage divided by the number of days the shop happened to open.

The load button is RM3,900 and 8 hours. 3,900 / 26 is RM150.00. 150 / 8 is RM18.75 an hour. The same salary divided by 30 is RM130.00. That third number is on the result so a calendar split can be seen and rejected. Using RM130 as the ordinary day will understate every overtime hour that is built on it. A wage of RM2,600, the overtime example, is RM100 a day and RM12.50 an hour on the same 8-hour day.

If you are daily-rated, the ordinary rate of pay is the daily wage itself. Switch the basis, type that wage, and type the normal hours. A RM100 day over 8 hours is RM12.50 an hour, which matches the monthly example only because RM2,600 / 26 happens to be RM100. The two bases are not interchangeable. A daily-rated rest day also pays differently: half a day or less is one day's wages, and more than half up to a normal day is two days. Those multipliers are on the overtime page, which prices the monthly rest-day bands. Do not add them twice.

Normal hours are the hours the contract calls normal, not the hours you stayed. The form accepts a day up to 24 so a shift can be typed, and it will not invent a lunch break. If the normal day is 7.5 hours, type 7.5. The hourly rate rises because the same ordinary day is spread over fewer hours. That is the Act's division, not a raise.

The 26-day rule here is the Peninsular Employment Act. Sabah and Sarawak labour ordinances are separate documents. A contract can define a richer day rate; it cannot be assumed from this page. Once you have the hour, weekday overtime starts at 1.5 times it. The 2026 net salary page is a different question: EPF, SOCSO, EIS, and PCB on a monthly wage, not the price of one extra hour.

Questions people actually ask

What is the RM3,900 example?

RM3,900 divided by 26 is RM150.00 a day. At 8 normal hours the hourly rate is RM18.75. Dividing the same salary by 30 is RM130.00, and that calendar split is not the Act.

Why 26 and not the days in the month?

Section 60I fixes 26 for a monthly ordinary rate of pay. A shop that opened 24 days, or a calendar month of 31, is a different number. The page shows the ÷30 figure beside the Act so the two are not confused.

How do I get an hourly rate from a daily wage?

Switch the basis to daily-rated and type the daily wage. The ordinary rate of pay is that wage. The hourly rate is the wage divided by the normal hours. A RM100 day and an 8-hour day is RM12.50 an hour.

Is the hourly rate the overtime rate?

It is the starting point. Weekday overtime is at least 1.5 times that hour. Rest-day and public-holiday multipliers are on the overtime page. The extra pay sits on top of the monthly wage.

Does this apply in Sabah and Sarawak?

This page follows the Employment Act 1955 divisor used in Peninsular Malaysia. Sabah and Sarawak have their own labour ordinances. Check the ordinance or the contract before you treat 26 as the local rule.

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