Malaysia uses separate overtime rules by workday type; Everhour keeps approved hours organized for payroll and billing review.
Calculate regular and overtime earnings based on your hours and rate. Supports standard time-and-a-half and double-time multipliers.
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This calculation answers how much overtime pay is due for an employee covered by Malaysia's Employment Act 1955 rules for Peninsular Malaysia and Labuan. Sabah and Sarawak employees require checks under separate labour ordinances. The main inputs are monthly pay or hourly rate, normal daily hours, total hours worked, and whether extra hours fell on an ordinary workday, rest day, or paid public holiday.
The result matters because the multiplier changes by day type. Overtime beyond normal hours on an ordinary workday is paid at not less than 1.5 times the hourly rate. Work beyond normal hours on a rest day uses at least 2 times the hourly rate, while overtime beyond normal hours on a paid public holiday uses at least 3 times the hourly rate.
For statutory overtime-pay coverage, Malaysia's First Schedule excludes employees earning more than RM4,000 per month from statutory rest-day, overtime, holiday-work, and termination-benefit pay provisions, while certain categories such as manual labour are covered irrespective of wages. Check that threshold before treating the statutory overtime formula as the payroll rule for a higher-paid employee.
The Employment Act 1955 also caps ordinary contract hours at no more than 8 hours per day, a 10-hour spread-over period per day, and 45 hours per week. A limited agreed-hours pattern can allow up to 9 hours on some days, but still no more than 45 weekly hours. A qualifying collective agreement or Industrial Court award can preserve existing working-time terms while it remains in force.
For monthly employees, the ordinary daily rate is monthly pay divided by 26. The hourly rate of pay equals that ordinary daily rate divided by normal hours of work. After that, multiply overtime hours by the correct premium: 1.5 for ordinary workday overtime, 2 for rest-day overtime beyond normal hours, or 3 for paid public-holiday overtime beyond normal hours.
Example: a covered Peninsular Malaysia employee earns RM3,120 per month, normally works 8 hours per day, and records 50 hours in a week with 5 ordinary workday overtime hours. The daily rate is RM120, and the hourly rate is RM15. Ordinary pay for 45 hours is RM675. Overtime pay is 5 × RM15 × 1.5 = RM112.50, for RM787.50 total weekly pay.
A one-off calculation is enough when you need to check one employee's ordinary workday overtime, confirm the right multiplier, or estimate payroll before final approval. It is not enough when the same records must support rest-day pay, public-holiday pay, client billing, department cost reports, or corrections after a manager reviews submitted time.
For a managed workflow, keep approved time entries, billing status, and payroll review in one process. Everhour can mark projects as billable or non-billable, exclude specific tasks from billable totals, apply custom task rates, and report billable time, non-billable time, billable amount, and cost for admin review.
This content is for general information only, may not be fully up to date, and is provided without any warranty or liability.
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Use the Employment Act 1955 rule set for employees in Peninsular Malaysia and Labuan when the worker is covered by that Act. Sabah and Sarawak use separate labour ordinances, so their overtime checks need the applicable local framework instead of a Peninsular Malaysia shortcut.
For overtime calculations, divide monthly pay by 26 to get the ordinary daily rate. Then divide that daily rate by the employee's normal hours of work to get the hourly rate of pay. For example, RM3,120 divided by 26 equals RM120 per day, and RM120 divided by 8 equals RM15 per hour.
Overtime performed beyond normal hours of work on an ordinary workday must be paid at not less than 1.5 times the employee's hourly rate of pay. That multiplier applies after ordinary hours are separated from overtime hours and after the correct hourly rate has been calculated.
Work beyond normal hours on a rest day must be paid at not less than 2 times the hourly rate. Overtime beyond normal hours on a paid public holiday must be paid at not less than 3 times the hourly rate. Paid public-holiday work also has the separate holiday pay plus two days' wages rule.
The common mistake is applying one 1.5 multiplier to every extra hour. Malaysia's Employment Act 1955 rules distinguish ordinary workday overtime, rest-day overtime, and paid public-holiday overtime. Another mistake is using the statutory formula without first checking the RM4,000 monthly wage threshold and covered worker category.
Everhour supports billable and non-billable time through project billing status, task-level non-billable controls, custom task rates, member-rate exceptions, and admin reports. That lets admins review billable time, non-billable time, billable amount, and cost without rebuilding the time record manually.
Everhour timesheets let users submit weekly project hours or working hours for approval. Managers can approve, reject, or partially approve submitted time, and submitted or approved time is locked from regular member edits unless it is withdrawn or rejected.
Move repeat overtime checks into approved time, billing status, and admin reports. Everhour keeps billable and non-billable records connected to payroll and cost review.
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