Overtime Calculator Malaysia 2026
Work out overtime pay under the Employment Act 1955 for normal working days, rest days and public holidays from a monthly wage.
Preview page. The rates are checked against official sources; the page is awaiting final review before it is published.
Result
This is an estimate for planning. Confirm the final figure with the bank, JPJ or LHDN before you commit.
How it's calculated
The Employment Act sets minimum rates for work beyond the normal hours, on rest days and on public holidays. Everything starts from two figures defined in section 60I: the ordinary rate of pay, which for a monthly-rated employee is the monthly wage divided by 26, and the hourly rate of pay, which is the ordinary rate divided by the normal hours of work in a day.
ordinary rate = monthly wage ÷ 26 and hourly rate = ordinary rate ÷ normal hours per day
The multipliers, from sections 60, 60A and 60D:
- Normal working day, beyond normal hours: 1.5 × hourly rate per hour.
- Rest day, up to half the normal hours: half a day’s wages. More than half up to the normal hours: one day’s wages. Beyond normal hours: 2 × hourly rate per hour.
- Public holiday, within normal hours: two days’ wages in addition to the holiday pay, whatever the hours worked. Beyond normal hours: 3 × hourly rate per hour.
Worked example (the default inputs). A monthly wage of RM 3,000.00 and eight normal hours a day give an ordinary rate of RM 3,000 ÷ 26 = RM 115.38 and an hourly rate of RM 115.38 ÷ 8 = RM 14.42.
Ten hours of overtime on normal days: 10 × 1.5 × RM 14.42 = RM 216.35. One rest day worked for four hours, which is exactly half the normal hours: half a day’s wages, RM 57.69. One public holiday worked for eight hours plus two hours of overtime: two days’ wages, RM 230.77, plus 2 × 3 × RM 14.42 = RM 86.54. Total overtime pay for the month: RM 591.35.
The Act sets minimums. A contract or collective agreement can pay more, never less, and an employer may use a different formula for the ordinary rate only if it produces a higher figure.
Who the rates apply to
Since the 2022 amendments took effect on 1 January 2023, every employee with a contract of service is under the Act, but the First Schedule switches off the overtime, rest day and public holiday pay provisions for employees earning more than RM 4,000 a month, unless they do manual work, drive vehicles for hire or commerce, supervise manual workers, work on a Malaysian ship or are domestic employees. For those earning above the threshold in office jobs, overtime pay is a matter of contract. The threshold is tested on wages excluding commission, subsistence allowance and overtime itself.
Hours, limits and what counts as wages
Normal hours may not exceed eight a day or forty-five a week, with at least thirty minutes of rest after five consecutive hours, and a working day may not be spread over more than ten hours. Overtime is limited to 104 hours a month, excluding rest day and holiday work. Wages for these calculations means the basic wage and fixed cash allowances payable under the contract; it excludes travel and housing allowances, bonuses, commission and payments for work on rest days and holidays. If your payslip splits the salary into basic and allowances, enter the total that counts as wages and keep the exclusions out.
FAQ
How is overtime calculated in Malaysia?
Take the monthly wage, divide by 26 to get the ordinary rate of pay for a day, then divide by the normal hours of work (usually 8) to get the hourly rate. Overtime on a normal working day is paid at not less than 1.5 times that hourly rate for every hour beyond the normal hours. Rest days and public holidays have their own, higher rates set out in sections 60 and 60D of the Employment Act 1955.
Who is entitled to overtime pay under the Employment Act?
Since 1 January 2023 the Act covers every employee on a contract of service, but the overtime, rest day and public holiday pay provisions apply only to employees earning up to RM 4,000 a month, and regardless of wages to manual workers, drivers, supervisors of manual workers, seafarers and domestic employees. Above RM 4,000 in other jobs, overtime is whatever the employment contract says, which is often nothing.
What is the maximum overtime allowed per month?
The Employment (Limitation of Overtime Work) Regulations 1980 cap overtime at 104 hours in any one month. Work on rest days and public holidays does not count towards that cap under section 60A(4). An employer who needs more must apply to the Director General of Labour for an exemption.
How is work on a rest day paid?
For a monthly-rated employee, working up to half the normal hours on a rest day earns half a day’s wages, and working more than half up to the full normal hours earns a full day’s wages, both at the ordinary rate. Any hours beyond the normal hours are paid at twice the hourly rate. A day of eight hours plus two hours of overtime on a rest day therefore earns one day’s wages plus 4 hours’ worth of pay.
How is work on a public holiday paid?
An employee required to work on a paid public holiday receives two days’ wages at the ordinary rate in addition to the holiday pay already included in the monthly salary, however many hours are worked within the normal hours. Hours beyond the normal hours on that day are paid at three times the hourly rate.
Sources
- Employment Act 1955 (Act 265), updated text as at 1 January 2023, sections 60, 60A, 60D and 60I and the First Schedule
- Employment (Limitation of Overtime Work) Regulations 1980, regulation 2 (104 hours a month)
- Employment (Amendment of First Schedule) Order 2022, P.U.(A) 262/2022, in force 1 January 2023 by P.U.(A) 273/2022