What overtime means under Malaysian law
Overtime in Malaysia is any work you do beyond your normal hours of work for the day. Your normal hours are the hours agreed in your employment contract, and the contract cannot set them higher than the legal limits. The rules come from the Employment Act 1955 (Act 265), mainly these sections:
- Section 60A sets the limits on working hours and the 1.5x overtime rate for normal working days.
- Section 60 covers work on your weekly rest day.
- Section 60D covers work on paid public holidays.
- Section 60I defines the ordinary rate of pay and the hourly rate of pay that every overtime figure is built on.
The Employment (Amendment) Act 2022 changed several of these rules from 1 January 2023. It cut the maximum working week from 48 to 45 hours and extended the Act to all employees under a contract of service, while keeping overtime pay for those earning RM4,000 a month or less. The amended text is published by the Department of Labour Peninsular Malaysia (JTKSM), which also enforces it.
Legal limits on working hours
Under section 60A(1), your employer cannot make you work:
- more than 8 hours in one day,
- more than 45 hours in one week,
- more than 5 hours in a row without a break of at least 30 minutes, or
- over a spread of more than 10 hours in one day.
If your contract sets fewer than 8 hours on some days, the remaining days can go up to 9 hours, as long as the week stays within 45 hours. A common example is 8 hours from Monday to Friday plus 5 hours on Saturday. Overtime is on top of these limits, and the employer can ask you to do it within the caps described below.
Malaysia overtime rates at a glance
These are the minimum rates for a monthly-rated employee covered by the overtime provisions. Daily-rated and piece-rated workers have their own versions of the rules.
| When you work | Minimum pay | Law |
|---|---|---|
| Beyond normal hours on a working day | 1.5 × hourly rate for each hour | s.60A(3)(a) |
| Rest day, up to half your normal hours | ½ day's ordinary rate of pay | s.60(3)(a) |
| Rest day, more than half and up to your normal hours | 1 day's ordinary rate of pay | s.60(3)(a) |
| Rest day, beyond your normal hours | 2 × hourly rate for each hour | s.60(3)(c) |
| Paid public holiday, up to your normal hours | 2 days' wages, plus your normal holiday pay | s.60D(3)(a) |
| Paid public holiday, beyond your normal hours | 3 × hourly rate for each hour | s.60D(3)(aa) |
Two of these rows trip people up. Rest-day pay within normal hours is a flat amount per day, not an hourly figure, so 1 hour and 4 hours on a rest day can earn the same half day's pay. The same applies on a public holiday: any work up to your normal hours earns two extra days' wages, however short the shift.
How the overtime formula works in Malaysia
Every rate above is built from two figures defined in section 60I.
Ordinary rate of pay (ORP) = monthly wages ÷ 26
Hourly rate of pay = ORP ÷ normal hours of work per day
The divisor is always 26 for a monthly-rated employee, whether you work a 5-day or a 6-day week. Some employers use 22 for a 5-day week, which gives a higher daily rate. That is allowed because it pays more than the minimum, but a divisor above 26, or dividing by the calendar days in the month, would underpay you.
Then, for the month:
- Normal-day OT = hourly rate × 1.5 × overtime hours.
- Rest-day pay = (½ ORP × short rest days) + (1 ORP × longer rest days) + (hourly rate × 2 × hours beyond normal hours).
- Public holiday pay = (2 × ORP × holidays worked) + (hourly rate × 3 × hours beyond normal hours).
- Add them up. This is paid on top of your normal monthly salary.
What counts as "wages" for the ORP
The ORP uses "wages" as defined in section 2 of the Act. That generally means your basic pay plus other cash payments due under your contract, such as fixed allowances. The definition leaves out a few items, including the value of housing or food, employer contributions to EPF and other funds, travelling allowances, gratuities, annual bonuses, and, under section 60I, overtime pay and incentive payments. If you get a fixed monthly allowance that is not one of those exclusions, include it in the calculator's "Monthly wages" box and check with your payroll team how they treat it.
Worked example with real numbers
Aina is a monthly-rated clerk in Selangor earning RM2,600 a month. Her contract sets 8 normal hours a day, Monday to Friday. In one month she works:
- 10 hours of overtime on normal working days,
- one rest day for 4 hours, and another rest day for 11 hours,
- one public holiday for 13 hours.
Her rates: ORP = 2,600 ÷ 26 = RM100 a day. Hourly rate = 100 ÷ 8 = RM12.50.
| Normal-day OT: 10 h × RM12.50 × 1.5 | RM187.50 |
| Rest day, 4 h (half of 8 h): ½ × RM100 | RM50.00 |
| Rest day, 11 h: first 8 h = 1 × RM100 | RM100.00 |
| Same rest day, 3 extra h × RM12.50 × 2 | RM75.00 |
| Public holiday, first 8 h: 2 × RM100 | RM200.00 |
| Same holiday, 5 extra h × RM12.50 × 3 | RM187.50 |
| Total on top of her salary | RM800.00 |
So the 11-hour rest day is worth RM175 and the 13-hour public holiday is worth RM387.50. Aina's overtime hours toward the monthly cap are 10 + 3 + 5 = 18, well under 104. These are the default values in the calculator, so you can see the same figures above.
Example at the minimum wage
A worker on the national minimum wage of RM1,700 with 8 normal hours has an ORP of 1,700 ÷ 26 = RM65.38 and an hourly rate of RM8.17. Each hour of normal-day overtime must pay at least RM12.26, each rest-day overtime hour RM16.35 and each public holiday overtime hour RM24.52.
Example with 7.5-hour days
If your contract says 7.5 hours a day, 6 days a week (45 hours), the divisor for the hourly rate is 7.5, not 8. On RM3,500 a month, ORP = RM134.62 and the hourly rate = RM17.95, so normal-day overtime pays RM26.92 an hour. Using 8 here would understate every overtime hour, which is one of the most common payroll errors.
Who is entitled to overtime pay in Malaysia
Since 1 January 2023 the Employment Act applies to every employee in Peninsular Malaysia and Labuan who has a contract of service. The overtime parts work differently. Under the Employment (Amendment of First Schedule) Order 2022, sections 60(3), 60A(3), 60C(2A), 60D(3) and 60D(4) and section 60J do not apply to an employee whose wages exceed RM4,000 a month. In plain terms, above RM4,000 you have no statutory right to overtime, rest-day or public-holiday premiums or shift allowance, and those terms depend on your contract.
| Employee | Statutory overtime pay? |
|---|---|
| Wages RM4,000 a month or less | Yes |
| Manual labourers, operators of mechanically propelled vehicles, and supervisors of manual workers, at any wage | Yes |
| Wages above RM4,000, not in a manual category | No, contract terms apply |
| Domestic employees | Most hours and overtime rules do not apply |
| Workers in Sabah or Sarawak | Covered by the Sabah or Sarawak Labour Ordinance instead |
Being outside the overtime sections does not mean you lose everything. Senior staff still get annual leave, sick leave, public holidays and the other protections in the Act. Many contracts for managers either include a fixed overtime allowance or state that the salary already covers extra hours.
The 104-hour monthly overtime limit
The Employment (Limitation of Overtime Work) Regulations 1980 cap overtime at 104 hours a month. That works out to roughly 4 hours a day on a 26-day month. Section 60A(1) also says that, outside emergencies and certain permitted cases, total work in a day should not go beyond 12 hours. An employer that needs more than 104 hours, for example in a seasonal peak, has to apply to the Director General of Labour for approval.
The calculator adds up the hourly overtime categories (normal-day OT, rest-day hours beyond normal hours and public holiday hours beyond normal hours) and warns you when the total passes 104. Rest days and public holidays worked within normal hours are paid as whole or half days, so they are shown separately.
Minimum wage and overtime
The Minimum Wages Order 2024 set the national minimum wage at RM1,700 a month from 1 February 2025, extended to all employers regardless of size from 1 August 2025. The hourly equivalent for an 8-hour day is about RM8.17. Overtime is calculated on your actual wages, so if your basic pay is below the minimum wage, your overtime will be too, and the shortfall should be raised with JTKSM.
An increase to RM2,000 a month was under discussion in the run-up to Budget 2027 (The Star, September 2026). Any new rate applies only once a new Minimum Wages Order is gazetted, so this page still uses RM1,700 and will be updated when that happens.
Common mistakes and edge cases
- Dividing by 30 or by the days in the month. Section 60I(1A) sets 26 for monthly-rated staff. A 30-day divisor understates the ORP by more than 13%.
- Using 8 hours when your contract says fewer. The hourly rate uses your contractual normal hours. If you work 7 hours a day, divide by 7.
- Paying rest-day work by the hour. Within normal hours, the law pays a half day or a full day. Two hours on a Sunday earns half a day's ORP, not 2 hours at a premium.
- Treating public holiday work like rest-day work. A holiday worked earns two extra days' wages on top of the holiday pay already in your salary, and overtime beyond normal hours is 3x, not 2x.
- Which day is the rest day. If you get two off days a week, such as Saturday and Sunday, your contract or roster should say which one is the rest day. Work on the other off day is commonly paid as normal-day overtime at 1.5x, so check how your employer treats it.
- Unpaid "voluntary" overtime. If your employer knows you are working past your normal hours and accepts the work, it is overtime and must be paid.
- Assuming above RM4,000 means nothing is owed. Check your contract. Many employers still pay overtime to staff above the threshold.
How to check your payslip
- Keep your own record of start and finish times, rest days worked and public holidays worked. A phone note or a photo of your time card is useful evidence.
- Check the ORP and hourly rate on your payslip against this calculator. If those two numbers are wrong, every overtime line will be wrong too.
- Check the payment date. Under section 19(1A), overtime pay is due no later than the last day of the next wage period, so most employers pay it with the following month's salary.
- Raise it in writing with HR first. If the problem is not fixed, you can file a complaint with the nearest JTKSM office or online.
Frequently asked questions
How do I calculate overtime pay in Malaysia?
Divide your monthly wages by 26 to get your ordinary rate of pay, then divide that by your normal daily hours to get your hourly rate. Normal-day overtime is at least 1.5 times the hourly rate for each hour. An overtime calculator for Malaysia like the one above does this for you and adds rest-day and public holiday pay.
Why is the salary divided by 26 and not 30?
Section 60I(1A) of the Employment Act 1955 says the ordinary rate of pay for a monthly-rated employee is the monthly rate divided by 26. Employers can use a smaller divisor such as 22 because it pays more, but not a larger one.
What is the overtime rate on a rest day in Malaysia?
For a monthly-rated employee, work up to half your normal hours earns half a day's pay, and more than half up to your normal hours earns one full day's pay. Hours beyond your normal hours on a rest day are paid at least 2 times the hourly rate.
How much do I get for working on a public holiday?
Two days' wages at your ordinary rate of pay, on top of the holiday pay already included in your monthly salary. Any hours beyond your normal hours that day are paid at least 3 times your hourly rate.
Am I entitled to overtime if I earn more than RM4,000?
Not under the Employment Act, unless you do manual labour, operate a mechanically propelled vehicle or supervise manual workers. Above RM4,000, your overtime terms depend on your employment contract.
What is the maximum overtime allowed per month in Malaysia?
104 hours a month under the Employment (Limitation of Overtime Work) Regulations 1980. Employers need approval from the Director General of Labour to go beyond it.
How many hours a week can I be made to work?
Normal hours cannot exceed 45 a week since 1 January 2023, down from 48. Daily normal hours are capped at 8, or 9 on some days if other days are shorter.
Is overtime calculated on basic salary or total salary?
On your "wages" as defined in the Act, which is generally basic pay plus fixed cash allowances due under your contract. Items such as travelling allowance, annual bonus and EPF contributions are excluded.
What is the minimum wage in Malaysia now?
RM1,700 a month since 1 February 2025. A rise to RM2,000 has been discussed for Budget 2027, but it applies only after a new order is gazetted.
Rates verified: October 2026 against the Employment Act 1955 text published by JTKSM. This calculator gives an estimate only and is not legal or tax advice. For a dispute, contact JTKSM or a lawyer.