Overtime Pay Calculator Malaysia 2026

Calculate OT pay according to the Employment Act 1955 instantly for FREE.

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Understanding Overtime Pay in Malaysia

Overtime (OT) pay is the additional compensation paid to employees who work beyond their normal working hours. In Malaysia, OT pay is regulated by the Employment Act 1955 to ensure workers are fairly compensated for extra time spent on the job. Understanding these regulations is crucial for both employers and employees to maintain compliance and fair labor practices.

This calculator helps you estimate your statutory overtime pay according to the Malaysian Employment Act. Use the calculator above to see the exact tiered breakdown for your hours worked.

Who Is Eligible for Overtime Pay?

Not all employees are entitled to statutory overtime pay under the Employment Act 1955. Eligibility is generally based on salary or nature of work:

Salary-Based Eligibility

Employees earning RM4,000 or below per month are statutorily entitled to overtime pay.

Occupation-Based Eligibility

Manual workers, machine operators, and supervisors of manual labour are eligible regardless of salary.

Important Note

Employees above RM4,000 not in these categories may still receive OT if stated in their employment contract, but it is not a legal requirement.

Overtime Rates in Malaysia

Overtime multipliers are standardized by law. The rates vary depending on the day you perform the extra work:

1.5x Rate

Normal Working Day

Standard OT for work beyond normal hours (e.g. 8 hours) on a typical workday.

Up to 2.0x

Rest Day

Work Hours Multiplier
0 - 4 hrs 0.5 Day Pay
4 - 8 hrs 1.0 Day Pay
8+ hrs (OT) 2.0x HRP
Up to 3.0x

Public Holiday

Work Hours Multiplier
0 - 8 hrs 2.0 Days Pay
8+ hrs (OT) 3.0x HRP

How to Calculate Overtime Pay

The calculation is a 3-step process. Each step builds on the previous one:

Step 1

Ordinary Rate of Pay (ORP)

Calculate your daily rate based on a standard 26-day working month.

Monthly Salary ÷ 26
Step 2

Hourly Rate of Pay (HRP)

Divide your ORP by the number of normal hours you work per day.

ORP ÷ Normal Work Hours
Step 3

Final Overtime Pay

Multiply your hourly rate by the extra hours worked and the relevant multiplier.

HRP × OT Hours × Multiplier

Overtime Calculation Example

Here is how a RM3,000 salary earner's OT pay looks for 2 hours of extra work on a normal day:

Input Summary
Monthly Salary:
RM 3,000.00
Normal Hours:
8 hrs / day
OT Hours:
2 hrs
OT Type:
Normal Day (1.5x)
Step 1: ORP (3000 ÷ 26) RM 115.38
Step 2: HRP (115.38 ÷ 8) RM 14.42
Step 3: Pay (14.42 × 2 × 1.5) RM 43.27
Total OT Pay RM 43.27
Reference Calculation based on Employment Act

Factors That Affect Overtime Pay

Several key variables will impact the final amount of overtime pay calculated:

Basic Monthly Salary
Total Overtime Hours
Daily Working Hours
OT Multiplier (1.5x / 2x / 3x)
Day Category (Rest/Holiday)
Tiered Multiplier Levels

Frequently Asked Questions

Got questions about overtime pay in Malaysia? Find answers to the most common statutory overtime questions below.

How is overtime pay calculated in Malaysia?

Overtime pay calculation is governed by the Employment Act 1955 based on your Hourly Rate of Pay (HRP) and statutory multipliers:

Overtime Pay Formula: HRP × Overtime Hours × Statutory Multiplier
  • Normal Workday OT: Paid at 1.5x HRP for work exceeding standard daily hours.
  • Rest Day OT (Excess Hours): Paid at 2.0x HRP for work beyond normal rest day schedule.
  • Public Holiday OT (Excess Hours): Paid at 3.0x HRP for work beyond standard public holiday hours.
Is overtime calculated using basic salary or gross salary?

Statutory overtime calculation uses the Ordinary Rate of Pay (ORP) rather than total gross salary:

  • Included Earnings: Basic Monthly Salary plus fixed, non-variable monthly allowances (e.g., position or fixed housing allowance).
  • Excluded Earnings: Performance-based bonuses, variable commissions, traveling allowances, and expense reimbursements.
  • Statutory Formula: Calculated using the mandatory fixed 26-day monthly divisor under the Employment Act 1955.
Who is entitled to overtime pay?

Under First Schedule amendments to Malaysia's Employment Act 1955, statutory OT coverage includes:

  • Salary Threshold: Employees earning a basic monthly salary of RM 4,000 or below are statutorily entitled to overtime pay.
  • Manual Labor Exception: Employees engaged in manual labor, supervision of manual workers, or operation of mechanically propelled vehicles are eligible regardless of salary level.
  • Above RM 4,000 Non-Manual: Subject to individual employment contracts or company policy rather than mandatory statutory rates.
What is the overtime rate for public holidays?

Working on an officially gazetted Public Holiday is compensated based on working hours:

  • Within Normal Working Hours: Entitled to 2 days' Ordinary Rate of Pay (ORP) regardless of actual hours worked within standard shift.
  • Excess / Overtime Hours: Paid at 3.0x your Hourly Rate of Pay (HRP) for every hour worked beyond normal shift hours.
What is the overtime rate for rest days?

Work performed on a scheduled weekly Rest Day follows statutory tiered rates:

  • Up to Half Normal Hours: Paid 0.5 day's ORP (for monthly paid employees).
  • More Than Half Up to Full Shift: Paid 1.0 day's ORP.
  • Excess / Overtime Hours: Paid at 2.0x your Hourly Rate of Pay (HRP) for any hours worked beyond standard shift duration.
How do I calculate my hourly rate?

Your Hourly Rate of Pay (HRP) is calculated in two steps using statutory Employment Act guidelines:

  • Step 1 — Daily Ordinary Rate of Pay (ORP):
    ORP = Monthly Basic Salary ÷ 26
  • Step 2 — Hourly Rate of Pay (HRP):
    HRP = ORP ÷ Normal Daily Working Hours (e.g., 8 hours)
What is the maximum overtime hours allowed per month?

Malaysia enforces strict statutory limits on monthly overtime work under Employment Regulations:

  • Monthly OT Cap: Maximum allowable overtime is 104 hours / month.
  • Exemption Requirements: Employers requiring employees to exceed 104 OT hours must obtain prior written approval from the Director General of Labour (JTK).
  • Weekly Working Hour Limit: Total regular weekly working hours are capped at 45 hours / week under updated Employment Act 1955 standards.

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