Under the Employment Act 1955, overtime begins the moment an employee works beyond their contracted daily hours — and the rates vary depending on the day. In many countries, including Malaysia, overtime is regulated by labor laws that require employers to pay employees at a higher rate for these additional hours.
Overtime pay is typically calculated as a multiple of the employee’s regular hourly wage, with higher rates often applied for work done on weekends, public holidays, or beyond a certain number of hours in a day or week.
Why Use an Overtime Calculator?
Instant Results: Enter your salary and hours, and get your overtime total right away.
Legally Compliant: Ensure compliance with Malaysian labour laws by calculating overtime pay correctly.
No Guesswork: A simple, clean layout that guides you through every field, step by step.
How to Use an Overtime Calculator?
Using our overtime calculator is quick and easy! Just five steps and you’re done, here’s a step-by-step guide:
Select a pay period: Choose between “Monthly” and “Daily”.
Enter your salary: Input your gross monthly salary or ordinary pay.
Input normal working hours: Specify the number of normal working hours in a day.
Enter overtime hours: Specify the number of overtime hours worked based on the different types of overtime.
Click Calculate: Click on the calculate button, and your breakdown, including basic pay, overtime by day type, and total income, will appear instantly.
Staying on top of overtime rules doesn’t have to be complicated. PayrollPanda’s calculator is built around Malaysian labour laws, so whether you’re processing payroll for five employees or five hundred, you can be confident the numbers are right.
Overtime That Flows Straight into Payslips
With PayrollPanda, you get more than just an overtime calculator. Rest assured that overtime pay is calculated accurately and reflected correctly in employee payslips, all while staying compliant with Malaysia’s labour laws.
Track Overtime Hours Automatically with Jibble
Effortlessly track and manage your team’s overtime hours by integrating PayrollPanda with Jibble. Jibble’s advanced time tracking features allow you to accurately record when employees clock in and out, including any overtime work. This data seamlessly syncs with PayrollPanda, ensuring overtime hours are accurate and ready for payroll.
Get Started Today!
Ready to take the manual work out of payroll? PayrollPanda handles overtime calculations, payslips, and statutory contributions — all in one place. Sign up today to get started – PayrollPanda is free forever for unlimited users!
FAQs
Some frequently asked questions…
Overtime can be classified into three types:
Normal Day Overtime: Work done after normal working hours on a regular workday.
Rest Day Overtime: Work done on a rest day.
Public Holiday Overtime: Work done on a public holiday.
Overtime is calculated based on the employee’s hourly rate. In Malaysia, the standard overtime rate is 1.5 times the employee’s hourly wage for any hours worked beyond the normal working hours. For work on rest days, the rate is typically 2 times the hourly wage, and for public holidays, it is 3 times the hourly wage.
Yes, there are free overtime calculators available, such as PayrollPanda’s overtime calculator. These tools allow you to quickly calculate overtime pay based on Malaysian labor laws.
Streamline your payroll for FREE!
Experience seamless payroll management at no cost! No obligations, no credit card details required.