Guide to Overtime Rates Under the Employment Act 1955

Modified on Fri, 24 Oct at 3:08 PM

The Malaysian Employment Act 1955 outlines minimum overtime pay requirements to protect employees who work beyond normal working hours, rest days or public holidays. These statutory overtime rates serve as a reference for HR and payroll configuration.

Overtime Rates by Day Type

A. Normal Working Day

If an employee works beyond their normal working hours: 1.5 × Hourly Rate of Pay (HRP)

B. Rest Day / Off Day

Assuming a normal working day is 8 hours:

Work ≤ 4 hours (half day or less): 0.5 × Ordinary Rate of Pay (ORP) – rounded to 4 hours
Work > 4 hours but ≤ 8 hours (full day): 1 × ORP – rounded to 8 hours
Work > 8 hours (exceeding normal hours): 2 × HRP

C. Public Holiday

Work ≤ 8 hours (normal working hours): 2 × ORP
Work > 8 hours (exceeds normal hours): 3 × HRP

The overtime rates listed here are based on standard practices under the Employment Act and are intended to serve as a reference when configuring overtime patterns in the system.

For detailed steps on how to set up an Overtime Pattern, please refer to this article: Creating Overtime Pattern Template

We hope this explanation clarifies the matter. If you require further assistance, please don't hesitate to contact our support team.