Your overtime pay under the Employment Act

Overtime pay (Malaysia)

Calculate overtime pay for a normal working day, rest day, or public holiday under Malaysia's Employment Act 1955.

Formula

hourly rate = (monthly salary ÷ 26) ÷ normal daily hours · normal day = 1.5× hourly rate · rest day = graduated 0.5×/1× daily rate within your shift, plus 2× hourly rate beyond it · public holiday = 2× daily rate, plus 3× hourly rate beyond your shift

Assumptions

• Follows the Employment Act 1955 (2022 amendment) convention: ordinary rate of pay = monthly salary ÷ 26 days, hourly rate = that ÷ your normal daily working hours.
• Since 1 January 2023 the Employment Act covers all employees, but the overtime provisions specifically (sections 60(3), 60A(3) and 60D(3)) do not apply above RM4,000 a month — above that, overtime terms are whatever your contract says.
• Public holiday pay here is the additional 2 days' wages the Act requires for working that day. A monthly-rated employee is already paid for the holiday itself, so this sits on top of normal salary rather than replacing it.
• The Act caps overtime at 104 hours per calendar month — this calculator does not enforce that cap.
• Assumes a standard fixed daily shift; compressed work weeks or irregular schedules may be calculated differently.

Frequently asked questions

Why are rest day and public holiday pay so much higher than normal day OT?
Rest days and public holidays are meant to be non-working days, so the Employment Act pays a premium for being called in — starting from a portion of a full day's pay even for a few hours, rather than just a per-hour multiplier on top of a normal shift.

Does this apply to all employees?
The Act itself covers all employees, but its statutory overtime rates stop applying above RM4,000 a month. Earning more than that, your overtime is whatever your employment contract provides — many employers still follow these rates voluntarily.

What if I work more than 104 overtime hours in a month?
The Employment Act caps overtime at 104 hours per calendar month as a legal limit — this calculator doesn't enforce that cap, so check your own hours against it separately.

Sources

• JTKSM — Employment Act 1955 overtime provisions