How Overtime Pay Works in Malaysia

Overtime (OT) pay in Malaysia is governed by the Employment Act 1955. The statutory overtime, rest-day and public-holiday rates apply to employees earning RM4,000 a month or less (plus manual workers and a few other categories) under the First Schedule. Above that, overtime is governed by your employment contract or company policy.

The two numbers everything is based on

Two rates do all the work. Your Ordinary Rate of Pay (ORP) is your monthly wages divided by 26, and your Hourly Rate of Pay (HRP) is the ORP divided by your normal hours of work per day (usually 8).

• ORP = Monthly wages ÷ 26
• HRP = ORP ÷ normal hours per day (e.g. 8)

Example: on RM2,600 a month, ORP = RM2,600 ÷ 26 = RM100, and HRP = RM100 ÷ 8 = RM12.50.

Normal working day — 1.5×

Any work beyond your normal hours on a normal working day is paid at 1.5× the hourly rate. Using the example above, 2 hours of OT = 1.5 × RM12.50 × 2 = RM37.50.

Rest day — up to 2×

On your rest day, a day-rate applies first, then an overtime premium for long hours:

• Work up to half your normal hours: half a day's ordinary pay.
• More than half, up to normal hours: one full day's ordinary pay.
• Hours beyond normal hours: 2.0× the hourly rate.

Example: 10 hours on a rest day = one day's ORP (RM100) + 2.0 × RM12.50 × 2 extra hours (RM50) = RM150.

Public holiday — up to 3×

For working a gazetted public holiday you get 2 days' ordinary pay for work within normal hours, plus 3.0× the hourly ratefor any hours beyond normal hours. Example: 9 hours on a public holiday = 2 × RM100 (RM200) + 3.0 × RM12.50 × 1 extra hour (RM37.50) = RM237.50.

Quick reference

• Normal working day: 1.5× hourly rate (for OT hours)
• Rest day: half / full day's pay, then 2.0× beyond normal hours
• Public holiday: 2 days' pay, then 3.0× beyond normal hours

You can run your own numbers instantly with the Overtime Pay Calculator, or check your full monthly take-home with the Salary Calculator.