Overtime Calculator Malaysia

Under the Employment Act 1955, overtime pay in Malaysia is calculated based on your hourly rate, which is derived from your monthly salary. The formula for calculating the hourly rate is:

**Hourly Rate = Monthly Salary ÷ 26 working days ÷ 8 hours**

For example, if your monthly salary is RM3,000, your hourly rate is RM3,000 ÷ 26 ÷ 8 = RM14.42 per hour.

The overtime rates are then applied based on when the overtime is worked:

**Normal Working Day:** 1.5 times the hourly rate. If you work 2 hours of overtime on a regular weekday, you earn 2 × RM14.42 × 1.5 = RM43.27 in overtime pay.

**Rest Day (first 8 hours):** 2 times the hourly rate. If you work on a rest day (usually Sunday), you earn double your normal hourly rate for the first 8 hours.

**Rest Day (exceeding 8 hours):** 2 times the hourly rate. Hours worked beyond the first 8 hours on a rest day also earn double rate.

**Public Holiday (first 8 hours):** 3 times the hourly rate. Working on a public holiday like Hari Raya, Chinese New Year, or Merdeka Day earns triple your normal hourly rate.

**Public Holiday (exceeding 8 hours):** 2 times the hourly rate. Hours beyond the first 8 hours on a public holiday earn double rate.

The Employment Act sets clear limits on working hours and overtime in Malaysia:

**Maximum working hours:** 8 hours per day or 48 hours per week (whichever is less, for some categories)

**Maximum overtime:** 104 hours per month. Employers who require employees to work more than this limit may face penalties under the Employment Act.

**Overtime is generally voluntary:** Employers cannot force employees to work overtime except in very specific emergency circumstances as defined under the Act. If your employer regularly requires mandatory overtime beyond your consent, you may have grounds for a complaint to the Labour Department.

**Overtime pay must be paid:** Overtime must be calculated and paid in the same month it is worked, along with your normal salary. If overtime pay is delayed, you have the right to report it to the Labour Department.

**Who is covered:** The Employment Act covers employees earning RM5,000 or below in Peninsular Malaysia, or RM4,000 or below in Sabah and Sarawak. Employees earning above these thresholds are generally not covered by the overtime provisions of the Act, unless they are manual labourers, supervisors of manual labourers, or persons who operate or maintain machinery.

For employees not covered by the Act, overtime terms depend on the employment contract. However, most companies still follow the Act's overtime rates as a benchmark.

Our overtime calculator is designed to make it easy for Malaysian employees to quickly determine their overtime pay entitlement. Follow these steps to get an accurate calculation:

**Step 1:** Enter your gross monthly salary as stated in your employment contract. This is the figure before any deductions. The calculator will automatically compute your hourly rate using the Employment Act formula of Monthly Salary ÷ 26 ÷ 8.

**Step 2:** Select the type of day on which the overtime was worked. Choose from normal working day, rest day, or public holiday. Each type has different multiplier rates as defined under Section 60A of the Employment Act 1955.

**Step 3:** Enter the number of overtime hours worked. For rest days, you can also specify whether the hours fall within the first 8 hours or beyond 8 hours, as the rate changes accordingly.

**Step 4:** Click "Calculate" to see your overtime pay amount. The result will show you the breakdown including your hourly rate, the applicable multiplier, and the total overtime pay you are entitled to receive.

**Step 5:** If you worked overtime on multiple types of days, repeat the calculation for each type and add the results together. For example, if you worked 3 hours on a normal weekday and 5 hours on a public holiday, calculate each separately and sum them up.

The calculator is particularly useful for employees in industries with irregular hours such as manufacturing, retail, hospitality, and logistics, where overtime is common and needs to be accurately tracked for payslip verification.

Let us walk through detailed overtime pay calculations for common salary levels in Malaysia so you can understand exactly how the numbers work.

**Example 1: RM3,000 Monthly Salary — Normal Working Day Overtime**

Hourly rate: RM3,000 ÷ 26 ÷ 8 = RM14.42 per hour If you work 4 hours of overtime on a regular weekday: Overtime pay = 4 hours × RM14.42 × 1.5 = RM86.54

**Example 2: RM4,500 Monthly Salary — Rest Day Work**

Hourly rate: RM4,500 ÷ 26 ÷ 8 = RM21.63 per hour If you work a full 8-hour shift on a rest day (Sunday): Rest day pay = 8 hours × RM21.63 × 2.0 = RM346.15 If you work an additional 2 hours beyond the first 8 hours: Additional pay = 2 hours × RM21.63 × 2.0 = RM86.54 Total rest day pay: RM432.69

**Example 3: RM5,000 Monthly Salary — Public Holiday Work**

Hourly rate: RM5,000 ÷ 26 ÷ 8 = RM24.04 per hour If you work 6 hours on a public holiday such as Hari Raya Aidilfitri: Public holiday pay = 6 hours × RM24.04 × 3.0 = RM432.69

**Example 4: RM2,500 Monthly Salary — Mixed Overtime in One Month**

Hourly rate: RM2,500 ÷ 26 ÷ 8 = RM12.02 per hour - 10 hours normal weekday overtime: 10 × RM12.02 × 1.5 = RM180.29 - 8 hours rest day: 8 × RM12.02 × 2.0 = RM192.31 - 6 hours public holiday: 6 × RM12.02 × 3.0 = RM216.35 - Total overtime pay for the month: RM588.95

These examples show how significantly overtime can boost your monthly income, especially when working on public holidays where the triple rate applies.

When you use our overtime calculator, the results provide several key pieces of information that are important to understand for your financial planning.

**Hourly Rate:** This is your base hourly rate derived from your monthly salary using the statutory formula. This rate is fixed regardless of how many hours you actually work — it is purely calculated from your contracted monthly salary divided by 26 working days and 8 hours per day.

**Multiplier Rate:** The calculator applies the correct multiplier based on the type of day: 1.5x for normal working days, 2x for rest days, and 3x for the first 8 hours on public holidays. Understanding these multipliers helps you verify that your employer is paying the correct overtime rate.

**Total Overtime Pay:** This is the gross amount you should receive for the overtime hours worked. Note that EPF and SOCSO contributions may also apply to overtime pay, as it is considered part of your wages. This means your actual net overtime pay will be slightly lower after deductions.

**Impact on Monthly Income:** Regular overtime can substantially increase your monthly earnings. For example, an employee earning RM3,500 base salary who consistently works 20 hours of overtime per month on normal weekdays would earn an additional RM403.85 per month (20 × RM13.46 × 1.5), representing an 11.5% increase over the base salary. However, be aware that increased income from overtime may also push you into a higher PCB tax bracket for that month.

**Maximum Overtime Limit:** Remember that the Employment Act caps overtime at 104 hours per month. If you find yourself regularly approaching this limit, it may be worth discussing workload distribution with your employer or evaluating whether the overtime compensation justifies the additional hours worked.

Here are answers to the most common questions about overtime pay in Malaysia:

**Is overtime mandatory in Malaysia?** No, overtime is generally voluntary. Under the Employment Act 1955, employers cannot compel employees to work overtime except in specific emergency situations such as accidents, breakdowns, or urgent work that must be completed to prevent serious disruption. If your employer routinely forces overtime, you can lodge a complaint with the Labour Department (Jabatan Tenaga Kerja) at your nearest branch.

**Does overtime pay include EPF contributions?** Yes, overtime pay is considered wages and is subject to EPF contributions. Both the employee and employer must contribute to EPF on overtime earnings. This means your overtime pay will be reduced by the EPF employee rate (typically 11%), but you will also accumulate additional retirement savings.

**What if my employer does not pay overtime?** If your employer fails to pay overtime for hours worked beyond the normal working hours, you can file a complaint with the Labour Department. Keep records of your overtime hours — timesheets, emails, or any written communication from your supervisor requesting overtime. The Labour Department can investigate and order the employer to pay the outstanding overtime.

**Are managers and executives entitled to overtime?** Employees who earn above RM5,000 per month in Peninsular Malaysia (or RM4,000 in Sabah and Sarawak) are generally not covered by the Employment Act's overtime provisions, unless they are manual labourers or machine operators. However, many companies still offer overtime pay or time-off-in-lieu as part of their internal policies. Check your employment contract for specifics.

**How does overtime affect my PCB tax?** Overtime pay increases your total income for the month, which may result in a higher PCB deduction. For occasional overtime, the impact is usually small. However, if you consistently earn significant overtime, the cumulative effect could push your annual income into a higher tax bracket. When filing your annual tax return, all income including overtime must be declared.