Overtime

Overtime pay

Weekday, rest day, and public holiday rates from the Employment Act, priced as extra pay on top of a monthly wage.

Overtime

Employment Act

Overtime on this page is extra pay. It is not a new monthly salary, and it is not folded back into EPF. The ordinary rate of pay for a monthly employee, section 60I of the Employment Act 1955, is the monthly wage divided by 26. The hourly rate is that day divided by the normal hours of work. A wage of RM2,600 and an 8-hour day is RM100 a day and RM12.50 an hour. Two weekday overtime hours, at not less than one and a half times that hour, are 2 × 1.5 × 12.50 = RM37.50.

The load button also marks a rest day worked for more than half the normal hours, up to a normal day. For a monthly employee that band pays one day, RM100. Half the normal hours or less would be half a day, RM50. Hours past the normal day on a rest day are at least two times the hourly rate, and the form has a separate box for those hours so they are not quietly priced at 1.5. The loaded example has no public holiday and no extra rest-day hours, so the extra pay is RM37.50 + RM100 = RM137.50, on top of the RM2,600. Clear the rest day if the question was only the weekday RM37.50.

A public holiday worked for the normal hours pays two days' wages at the ordinary rate, in addition to the holiday pay that is already inside the monthly wage. Overtime on that holiday is at least three times the hourly rate. Tick the holiday box only when the normal hours were worked that day, and put any hours beyond them in the holiday-overtime box. Adding the two-day payment and also deleting a day from the monthly wage double-counts the holiday.

Daily-rated workers are not the same rest-day table. Under the Act, a daily-rated employee paid for half the normal hours or less on a rest day gets one day's wages, and more than half up to a normal day gets two days. This form prices the monthly bands, because that is the wage it asks for. The day and hour page is where a daily wage is turned into an hour. Sabah and Sarawak ordinances are not this Act.

These rates are a floor for employees the hours-of-work sections cover. After the 2022 amendment the First Schedule still excludes many employees earning above RM4,000 a month from those sections, with exceptions that include manual labour and other named categories. A contract can pay more than the floor. Re-check the current First Schedule before you tell someone paid above that line that the Act owes them 1.5. The extra pay is on top of the month. It is not a reason to run the whole wage back through the net salary calculator as if the overtime were a new basic salary. KWSP's own material treats overtime as outside EPF wages.

Questions people actually ask

What does the RM2,600 button include?

A monthly wage of RM2,600, 8 normal hours, 2 weekday overtime hours, and a rest day worked for more than half the normal hours up to a full day. Weekday overtime is RM37.50. The rest day, for a monthly employee, is one day's pay, RM100. Extra pay is RM137.50, on top of the monthly wage. Untick the rest day if you only wanted the RM37.50.

Why divide by 26?

Section 60I sets the ordinary rate of pay for a monthly employee at monthly wages divided by 26. The hourly rate is that day divided by the normal hours. RM2,600 / 26 is RM100 a day, and RM100 / 8 is RM12.50 an hour.

What are the multipliers?

Weekday overtime is at least 1.5 times hourly. Hours past normal hours on a rest day are at least 2 times. A public holiday worked for the normal hours pays two days' wages on top of the holiday pay already in the monthly wage, and overtime that day is at least 3 times hourly.

Is a monthly rest day the same as a daily-rated rest day?

No. For a monthly employee, half the normal hours or less is half a day, and more than half up to a normal day is one day. For a daily-rated employee those same bands are one day and two days. This form prices the monthly bands. The day-and-hour page explains the daily wage itself.

Does everyone get these rates?

They are the Employment Act 1955 floors for employees those sections cover. The First Schedule still keeps the hours-of-work sections off many employees paid above RM4,000 a month, with exceptions such as manual labour. A contract can pay more. Sabah and Sarawak use their own ordinances. Overtime is not subject to EPF.

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