Easy Steps On Calculating Your Overtime Pay (+Free Downloadable Sheet!)
But how do you compute your overtime pay? There are salary and overtime calculators you can use online, but there are also easy ways you can calculate them. This article will provide the overtime rates in Malaysia and overtime calculation steps with a free downloadable sheet.
Overtime Rate In Malaysia
Overtime rate can depend on two conditions:
- Your type of employment.Are you daily-rated or monthly-rated?
- The type of day you had your overtime.Did you work overtime during normal days, rest days, or public holidays?
Below is a guide on overtime rates in Malaysia.
| Daily-rate | Monthly-rate | |
| 1. Normal hours of work | 1.5x or not less than one and a half times the hourly rate of pay. | |
2. During rest days:
| 1 day's wages at the ordinary rate of pay. 2 day's wages at the ordinary rate of pay. 2x or not less than twice the hourly rate. | Half of the ordinary rate of work. 1 day's wages at the ordinary rate of pay. 2x or not less than twice the hourly rate. |
3. During public holidays:
| 2 day's wages at the ordinary rate of pay, regardless if the work done is less than the normal hours of work. 3x or not less than thrice the hourly rate. |
Free Downloadable Overtime Calculator Sheet
Use this free downloadable template for a quick and more organised overtime calculation.
[ Download Link ]
Computing Overtime Pay on Normal Days
Here are steps and examples of how you can compute your overtime during normal workdays.
Daily-rate Employees
- Compute your hourly rate.
Divide your daily rate by normal working hours per day.
Hourly rate = Daily rate / Working hours
=RM 64 / 8
=RM 8
- Calculate your overtime pay.
Multiply your hourly rate by the number of overtime hours and overtime rate.
Overtime hours = 3 hours
Overtime pay = Hourly rate X Overtime hours X Overtime rate
= RM 8 X 3 X 1.5
= RM 36
Monthly-Rated Employees
- Compute your ordinary rate of pay or daily rate.
Divide your monthly salary by 26 to get your daily rate.
Daily rate=Monthly salary / 26
=RM 1800 / 26
=RM 69.23
- Compute your hourly rate.
Divide your daily rate by normal working hours per day.
Hourly rate=Daily rate / Working hours
=RM 69.23 / 8
=RM 8.65
- Calculate your overtime pay.
Multiply your hourly rate by the number of overtime hours and overtime rate.
Overtime hours=4 hours
Overtime pay=Hourly rate X Overtime hours X Overtime rate
=RM 8.65 X 4 X 1.5
= RM 51.9
Computing Overtime Pay on Rest Days
Follow the steps below in calculating your overtime pay during your rest days.
Daily-rate Employees
- For less than half of the normal hours
Multiply your daily rate to 1 day’s wages.
Daily rate=RM 45
Overtime hours=3 hours
Overtime pay=Daily rate X 1 day's wages
=RM 45 X 1
= RM 45
- For more than half of normal working hours but does not exceed the normal working hours
Multiply your daily rate to 2 days’ wages.
Daily rate=RM 45
Overtime hours=6 hours
Overtime pay=Daily rate X 2 day's wages
=RM 45 X 2
= RM 90
- Exceeding the normal working hours
Multiply the overtime rate by your hourly rate and the number of hours beyond 8 hours.
Hourly rate=RM 5.63
Overtime hours=2 hours
Overtime pay=Hourly rate X Overtime hours X Overtime rate
=RM 5.63 X 2 X 2
= RM 22.52
Monthly-Rated Employees
- For less than half of the normal hours
Calculate your daily rate and divide it by half.
Overtime hours = 3 hours
Daily rate=Monthly salary / 26
=RM 1800 / 26
=RM 69.23
Overtime pay =Daily rate / Half day's wages
=RM 69.232
=RM 34.615
- For more than half of normal working hours but does not exceed the normal working hours
Compute your daily rate and divide it into 1 day’s wages.
Overtime hours = 5hours
Daily rate = Monthly salary / 26
=RM 1800 / 26
=RM 69.23
Overtime pay=Daily rate X 1 day's wages
= RM 69.23 X 1
=RM 69.23
- Exceeding the normal working hours
Multiply the overtime rate by your hourly rate and the number of hours beyond 8 hours.
Hourly rate=RM 6.75
Overtime hours=2 hours
Overtime pay=Hourly rate X Overtime hours X Overtime rate
=RM 6.75 X 2 X 2
= RM 27
Computing Overtime Pay During Public Holidays
Here is how you can calculate your overtime pay for extra work done during public holidays.
Daily-Rated and Monthly-Rated Employees
- For a period of work within or at normal working hours
Multiply your daily rate to 2 day’s wages.
Daily rate=RM 56
Overtime hours=6 hours
Overtime pay=Daily rate X 2 day's wages
=RM 56 X 2
= RM 112
- Exceeding the normal working hours
Multiply the overtime rate by your hourly rate and the number of hours beyond 8 hours. Here is the formula and an example:
Hourly rate=RM 6.58
Overtime hours=2 hours
Overtime pay=Hourly rate X Overtime hours X Overtime rate
=6.58 X 2 X 3
= RM 39.48
While overtime can be inevitable and has its limits, it is an aspect of the job that can affect work-life balance, motivation, and performance. Keep in mind these mandatory rates and calculation steps, so you know if you are getting the right compensation for all the extra working hours you put into your #JobsThatMatter.
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