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Overtime Formula:
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The Malaysia Overtime Calculation determines the additional compensation employees receive for working beyond their regular working hours. According to Malaysian labor laws, overtime is typically paid at 1.5 times the normal hourly rate.
The calculator uses the overtime formula:
Where:
Explanation: The calculation multiplies the overtime hours by 1.5 times the normal hourly rate to determine the total overtime compensation.
Details: Accurate overtime calculation ensures fair compensation for employees and compliance with Malaysian labor regulations. It helps both employers and employees understand the financial implications of extra working hours.
Tips: Enter the number of overtime hours worked and your normal hourly rate in ringgit. Both values must be positive numbers. The calculator will automatically compute your overtime pay according to Malaysian standards.
Q1: What is the standard overtime rate in Malaysia?
A: The standard overtime rate in Malaysia is 1.5 times the normal hourly rate for work beyond normal working hours.
Q2: Are there different overtime rates for weekends or public holidays?
A: Yes, Malaysian labor law specifies higher rates for work on rest days (2.0x) and public holidays (3.0x). This calculator uses the standard 1.5x rate for regular overtime.
Q3: Is there a maximum limit for overtime hours?
A: Yes, under the Employment Act 1955, overtime is limited to 104 hours per month unless approved by the Director General of Labour.
Q4: Who is eligible for overtime pay in Malaysia?
A: Generally, employees earning below RM4,000 per month and manual workers regardless of salary are covered under the Employment Act and eligible for overtime pay.
Q5: How is overtime calculated for monthly paid employees?
A: For monthly paid employees, the hourly rate is calculated as (monthly salary / 26) / normal working hours per day.