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Employment Act 1955 · minimum wage RM1,700Checked 28 September 2026

Overtime pay calculator (Employment Act 1955)

Enter your monthly basic wage and the extra hours you worked to see the minimum overtime pay the Employment Act 1955 requires.

RM
Use 0.5 for a rest day worked up to half your normal hours.

For monthly-rated employees covered by the Act's overtime rules, which apply to wages up to RM4,000 a month and to manual workers at any wage.

Overtime pay this month
RM187.50
On top of your RM2,600 basic wage · hourly rate RM12.50
Ordinary rate of pay (monthly ÷ 26)RM100.00
Hourly rate (÷ 8.0 hours)RM12.50
Normal days: 10.0 h × 1.5RM187.50
Rest days: 0.0 day's wagesRM0.00
Rest days beyond normal hours: 0.0 h × 2RM0.00
Public holidays: 0.0 × 2 days' wagesRM0.00
Public holidays beyond normal hours: 0.0 h × 3RM0.00
Total overtime payRM187.50

Overtime rates under the Employment Act

When you workMinimum pay
Beyond normal hours on a working day1.5 × hourly rate
Rest day, up to half your normal hoursHalf a day’s wages
Rest day, more than half up to your normal hoursOne day’s wages
Rest day, beyond normal hours2 × hourly rate
Public holiday, within normal hoursTwo days’ wages on top of holiday pay
Public holiday, beyond normal hours3 × hourly rate

How the rates are built

  1. Ordinary rate of pay (a day's wages) = monthly wage ÷ 26, whatever the number of days in the month.
  2. Hourly rate = ordinary rate of pay ÷ your normal hours per day.
  3. Multiply the hourly rate by 1.5, 2 or 3, or pay whole days, as in the table above.

On RM2,600 a month and 8 normal hours, a day's wages are RM100.00 and the hourly rate is RM12.50. Ten hours of overtime on working days pay RM187.50, and a full public holiday worked adds RM200.00.

Monthly wageHourly rate (8 h)1 h OT on a working day1 h OT on a public holiday
RM1,700RM8.17RM12.26RM24.52
RM2,000RM9.62RM14.42RM28.85
RM2,500RM12.02RM18.03RM36.06
RM3,000RM14.42RM21.63RM43.27
RM3,500RM16.83RM25.24RM50.48
RM4,000RM19.23RM28.85RM57.69

Limits and who is covered

Normal hours are capped at 45 a week, and overtime at 104 hours a month. Since 2023 the Employment Act covers every employee in Peninsular Malaysia and Labuan, but the overtime, rest day and public holiday pay rules apply only to those earning up to RM4,000 a month and to manual workers. Above that, your contract sets the terms. Sabah and Sarawak have their own labour ordinances.

Minimum wage

Paid byMinimum
MonthRM1,700
HourRM8.17
Day, 6-day weekRM65.38
Day, 5-day weekRM78.46
Day, 4-day weekRM98.08

The Minimum Wages Order 2024 set RM1,700 from 1 February 2025, and from 1 August 2025 for employers with fewer than five employees. It applies across Malaysia, except to domestic workers.

FAQ

How is overtime calculated for RM2,000 salary?

RM76.92 a day (RM2,000 ÷ 26) and RM9.62 an hour on 8 normal hours. One hour of overtime on a working day pays RM14.42.

Why divide by 26 and not 30?

Section 60I of the Employment Act fixes a monthly wage's daily rate at one twenty-sixth, whatever the month, because it assumes 26 working days.

Is overtime compulsory above RM4,000?

The Act's overtime rates are not compulsory for non-manual employees earning more than RM4,000 a month. Many employers still pay overtime under the contract.

What is the minimum hourly wage in Malaysia?

RM8.17 an hour, from the RM1,700 monthly minimum wage.

Is overtime taxed and subject to EPF?

Overtime is taxable and counts for PCB, SOCSO and EIS, but it is excluded from wages for EPF.

Sources

Checked 28 September 2026. OneCalcs is independent and not affiliated with LHDNM, KWSP, PERKESO, the Royal Malaysian Customs Department or the Ministry of Human Resources.

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