Overtime calculator
On RM2,500 a month and 8-hour days, your hourly rate under the Employment Act is RM12.02 (RM2,500 ÷ 26 ÷ 8), so overtime pays RM18.03 an hour: 1.5 times. Past the normal hours on a rest day it’s RM24.04, twice the rate, and on a public holiday RM36.06, three times.
Rates checked
Your overtime pay
Overtime and extra pay
on top of a RM2,500 salary
- A day’s wages
- RM96.15
- Hourly rate
- RM12.02
- Overtime an hour (1.5×)
- RM18.03
- Holiday overtime an hour (3×)
- RM36.06
How it’s worked out
A day’s wages is your salary ÷ 26: RM2,500 ÷ 26 = RM96.15. The hourly rate is that ÷ your 8 normal hours: RM2,500 ÷ 26 ÷ 8 = RM12.02.
| Pay for | Amount |
|---|---|
| Overtime on working days | RM180.29 |
| RM2,500 ÷ 26 ÷ 8 × 1.5 × 10 hours = RM180.29. | |
What you keep
| Without overtime | With it | |
|---|---|---|
| Gross pay | RM2,500.00 | RM2,680.29 |
| EPF | RM275.00 | RM275.00 |
| SOCSO and LINDUNG 24 Jam | RM30.60 | RM33.10 |
| EIS | RM4.90 | RM5.30 |
| PCB | RM0.00 | RM0.00 |
| Take-home | RM2,189.50 | RM2,366.89 |
You keep RM177.39 of the RM180.29. No EPF is taken on overtime; SOCSO, EIS and PCB are. PCB counts overtime as normal pay, so in January LHDN’s formula assumes you’ll earn it every month left in the year; if you don’t, the months after take less.
How overtime pay is worked out
Overtime is every hour past your normal hours of work in a day, the hours your contract sets (up to 8 a day, or 9 where other days are shorter, and 45 a week). The Act pays it at no less than 1.5 times your hourly rate, however your pay is fixed:
Overtime pay = monthly salary ÷ 26 ÷ normal hours × 1.5 × overtime hours
The salary ÷ 26 is your ordinary rate of pay, a day’s wages, and ÷ your normal hours it’s your hourly rate. On RM2,500 and 8-hour days that’s RM12.02 an hour (RM2,500 ÷ 26 ÷ 8), and RM18.03 for each hour of overtime. Count your basic pay and the cash allowances paid for your work; leave out housing, travel and other expense allowances, your employer’s EPF, gratuity and annual bonus, which the Act doesn’t count as wages.
If you’re paid by the day or the hour, a day’s wages is what you earned in the last wage period, leaving out pay for rest days and public holidays, ÷ the days you worked: at a steady rate, your daily rate, or your hourly rate × your normal hours.
Rest days and public holidays
Work on your rest day or a paid public holiday is paid by the day, not just the hour, and more for hours past your normal hours. A monthly salary already pays for your rest days, so working one adds less than it does for someone paid by the day:
| Work done | Paid by the month or week | Paid by the day or hour |
|---|---|---|
| Overtime on a working day | 1.5 × hourly rate | |
| Rest day, up to half the normal hours | Half a day’s wages | A day’s wages |
| Rest day, more than half, up to the normal hours | A day’s wages | Two days’ wages |
| Rest day, past the normal hours | 2 × hourly rate | |
| Public holiday, up to the normal hours | Two days’ wages, on top of the holiday’s own pay, however short the day | |
| Public holiday, past the normal hours | 3 × hourly rate | |
You’re entitled to 11 paid public holidays a year: five of them are National Day, the Agong’s birthday, your state Ruler’s or Governor’s birthday (or Federal Territory Day), Workers’ Day and Malaysia Day, and your employer names the other six from the gazetted holidays before the year starts. A holiday declared specially for the year is paid too.
Overtime rates by salary
| Salary | Hourly rate | Overtime (1.5×) | Rest day (2×) | Public holiday (3×) |
|---|---|---|---|---|
| RM1,700 | RM8.17 | RM12.26 | RM16.35 | RM24.52 |
| RM2,000 | RM9.62 | RM14.42 | RM19.23 | RM28.85 |
| RM2,500 | RM12.02 | RM18.03 | RM24.04 | RM36.06 |
| RM3,000 | RM14.42 | RM21.63 | RM28.85 | RM43.27 |
| RM3,500 | RM16.83 | RM25.24 | RM33.65 | RM50.48 |
| RM4,000 | RM19.23 | RM28.85 | RM38.46 | RM57.69 |
The rest day and public holiday rates are for hours past your normal hours on those days. Above RM4,000 the Act’s rates are owed only to manual workers, drivers and their supervisors.
Who the Act’s rates apply to
Since 1 January 2023 the Employment Act covers anyone with a contract of service in Peninsular Malaysia or Labuan. Its overtime, rest-day and public holiday rates are owed:
- to anyone earning up to RM4,000 a month, not counting commission, subsistence allowance or overtime;
- whatever they earn, to manual workers (including artisans and apprentices), anyone who drives or maintains a vehicle carrying passengers or goods, and anyone supervising manual workers.
Domestic employees, such as maids, cooks and drivers in a household, and the crew of Malaysian ships aren’t covered by these rates at all. Above the line, your contract decides; many contracts follow the Act anyway.
Part-time work
You’re part-time under the Employment (Part-Time Employees) Regulations 2010 if you work more than 30% and up to 70% of a full-timer’s hours a week in the same job. Your hourly rate is a day’s wages ÷ your own normal hours, but the higher rates start only past a full-timer’s normal hours (8 a day where there’s no full-timer to compare):
- Working days: 1 × your hourly rate past your normal hours, up to a full-timer’s; then 1.5 ×.
- Rest days: two days’ wages for your normal hours; then 1.5 ×, and 2 × past a full-timer’s hours. You have a paid rest day only if you work 5 or more days and 20 or more hours a week.
- Public holidays: two days’ wages on top of the holiday’s pay; then 2 ×, and 3 × past a full-timer’s hours.
Casual work of 30% or less of a full-timer’s hours isn’t covered by the regulations. Choose Part-time in the calculator to use these rates.
The minimum wage by the day and the hour
Under the Minimum Wages Order 2024 the minimum is RM1,700 a month or RM8.72 an hour, for every employer since 1 August 2025. Paid by the day, it’s RM65.38 for a six-day week, RM78.46 for five days and RM98.08 for four. Domestic servants aren’t covered. Overtime is on top of the minimum, never part of it.
What comes off overtime pay
Overtime is taxed and counts for SOCSO and EIS, but not for EPF. Take RM3,000 a month with 20 hours of overtime, RM432.69, paid in January, for a single Malaysian under 60:
| Without overtime | With it | |
|---|---|---|
| Gross pay | RM3,000.00 | RM3,432.69 |
| EPF | RM330.00 | RM330.00 |
| SOCSO and LINDUNG 24 Jam | RM36.90 | RM43.10 |
| EIS | RM5.90 | RM6.90 |
| PCB | RM0.00 | RM0.00 |
| Take-home | RM2,627.20 | RM3,052.69 |
You keep RM425.49 of the RM432.69. LHDN counts overtime as normal remuneration, so in the month it’s paid the PCB formula assumes you’ll earn the same every month left in the year; if you don’t, PCB in the months after is less, and the year’s PCB comes out close to the tax on what you really earned. For PCB with your own reliefs, use the PCB calculator with the month’s pay.
Other calculators
- Malaysia salary calculatorNet salary after EPF, SOCSO, EIS and PCB.
- PCB calculator 2026Monthly tax deduction by LHDN’s own formula.
- Bonus PCB calculator 2026PCB and EPF on a bonus, by LHDN’s method.
- Income tax calculator YA2026Your tax for the year, and your refund or balance.
- EPF contribution calculator 2026Your KWSP share and your employer’s.
- SOCSO and EIS calculator 2026PERKESO contributions, including LINDUNG 24 Jam.
- Foreign worker salary calculator 2026EPF, SOCSO and PCB for foreign workers and expats.
- Net salary tableRM1,700 to RM30,000, after EPF, SOCSO, EIS and PCB.
Questions
I earn more than RM4,000. Am I owed overtime?
Not under the Employment Act, unless you do manual work, drive or look after vehicles that carry passengers or goods, or supervise manual workers. Since 1 January 2023 the Act covers every employee, but its overtime, rest-day and public holiday rates stop at RM4,000 a month for everyone else. Your contract or company policy may still pay overtime; many use the Act’s rates anyway. The RM4,000 doesn’t count commission, subsistence allowance or overtime itself.
Is EPF taken from overtime pay?
No. KWSP doesn’t take EPF on overtime payments, from you or your employer. SOCSO and EIS are taken on it, up to their RM6,000 ceiling, and it’s taxed, so PCB can rise.
How many hours of overtime can I be asked to work?
No more than 104 hours a month, unless the Labour Department allows more, and no more than 12 hours’ work in any day, overtime included, outside emergencies. Work on rest days and public holidays doesn’t count towards the 104 hours.
Why divide by 26, not by the days in the month?
Section 60I of the Act sets a day’s wages for a monthly-paid employee as the monthly rate ÷ 26, whatever the month, which leaves out the four or so rest days. An employer may use another formula only if it gives you at least as much.
Does this apply in Sabah and Sarawak?
The Employment Act covers Peninsular Malaysia and Labuan. Sabah and Sarawak have their own Labour Ordinances, with their own rules on hours, rest days and public holidays, so check yours with the state’s Labour Department.
Sources
- Commissioner of Law Revision, Malaysia (reprint hosted by InvestMalaysia): Employment Act 1955 (Act 265), as at 1 August 2023: sections 60, 60A, 60D and 60I, and the First Schedule (checked 28 October 2026)
- Malaysian Bar (Circular 263/2022, reproducing the Federal Gazette): Employment (Amendment of First Schedule) Order 2022, P.U.(A) 262/2022: the overtime, rest-day and holiday rates don’t apply above RM4,000 a month, except to manual workers, drivers and their supervisors (checked 28 October 2026)
- JTKSM (Labour Department of Peninsular Malaysia): Soalan lazim: Akta Kerja 1955 (Pindaan) 2022, in force 1 January 2023 (checked 28 October 2026)
- JTKSM: Employment (Limitation of Overtime Work) Regulations 1980, regulation 2: 104 hours a month (checked 28 October 2026)
- Federal Gazette (copy uploaded to SlideShare): Employment (Part-Time Employees) Regulations 2010: regulations 5 (overtime), 6 (holidays) and 9 (rest days) (checked 28 October 2026)
- Attorney General’s Chambers (Federal Gazette): Minimum Wages Order 2024, P.U.(A) 376/2024: RM1,700 a month, RM8.72 an hour, and the daily rates (checked 28 October 2026)
- KWSP (EPF): Payments not subject to contribution: overtime payments (checked 28 October 2026)
- PERKESO (SOCSO): PERKESO booklet 2025: wages subject to contribution include overtime (checked 28 October 2026)
- LHDN: Navigasi HASiL 2026: overtime pay is normal remuneration for PCB (checked 28 October 2026)
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