1. What is Daily Rate and Overtime Calculation?

In Malaysia, the daily rate is typically calculated by dividing the monthly salary by 26 (working days). Overtime pay is then calculated based on this daily rate, with a multiplier of 1.5 times the hourly rate for overtime hours worked.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• \( \text{Monthly Salary} \) — Gross monthly salary in MYR
• \( 26 \) — Standard number of working days in Malaysia
• \( 8 \) — Standard working hours per day
• \( 1.5 \) — Overtime multiplier rate
• \( \text{overtime hours} \) — Hours worked beyond normal working hours

Explanation: The calculation follows common Malaysian employment practices where overtime is paid at 1.5 times the normal hourly rate.

3. Importance of Accurate Salary Calculation

Details: Correct calculation of daily rate and overtime is crucial for both employers and employees to ensure fair compensation and compliance with Malaysian labor laws.

4. Using the Calculator

Tips: Enter your monthly salary in MYR and the number of overtime hours worked. The calculator will compute both your daily rate and overtime pay.

5. Frequently Asked Questions (FAQ)

Q1: Why divide by 26 for daily rate?
A: In Malaysia, the standard calculation assumes 26 working days per month (5-day work week).

Q2: Is the overtime rate always 1.5x?
A: For normal working days, yes. For public holidays and rest days, different rates may apply (2x or 3x).

Q3: Are there different calculations for different industries?
A: Some industries may have different standards, but this is the common calculation for most employees.

Q4: Does this include EPF and SOCSO deductions?
A: No, this calculates gross amounts before any statutory deductions.

Q5: Is this calculation legally binding?
A: While based on common practice, always refer to your employment contract and Malaysian labor laws for official calculations.