Your Guide To Claiming Overtime Pay In Malaysia

Mark your calendars, Malaysians! Employees with wages up to RM4,000 are now eligible to claim overtime pay.

By Kimberly Chang on 2023-11-27 at 7:11 AM

Updated on 2024-08-22 at 1:14 PM

Overtime Payment in Malaysia: Here’s What You Should Know

Working beyond regular hours or attending to work matters on holidays is sometimes unavoidable, especially during peak seasons or when a critical deadline looms. But here's the good news—your hard work won't go unrewarded!

In Malaysia, it's not just a matter of crossing off your to-do list on time. The law that provides and protects employee rights in Malaysia, The Employment Act 1955, mandates that eligible employees must receive overtime (OT) pay, ensuring that your extra effort is fairly compensated.

Who is Eligible for Overtime Pay in Malaysia?

Previously, only Malaysian employees earning less than RM2,000 were entitled to OT pay. However, with the latest amendments effective from 1 January 2023, this compensation has been extended to those earning between RM2,001 and RM4,000 per month. Additionally, working hours have been reduced from 48 to 45 hours per week. Any work beyond these hours is claimable as overtime.

Who is Not Eligible for Overtime Pay in Malaysia?

It's equally important to know who isn't eligible for overtime pay. Generally, those in managerial positions are excluded since their roles often require flexible working hours beyond standard operational times. Here's a quick summary of the updated Employment Act 1955:

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Understanding Overtime Payment

In Malaysia, OT pay is the extra compensation you receive for working beyond your standard hours. According to the Employment Act, the overtime rate is typically 1.5 times your normal hourly wage. This means for every overtime hour worked, you earn one and a half times your regular pay rate. Keep in mind that the maximum salary eligible for claiming overtime is capped at RM4,000.

How to Claim Overtime Pay in Malaysia

Claiming your OT pay in Malaysia is a straightforward process, but it requires attention to detail:

1. Recording Hours

Make sure all overtime hours are accurately logged and verified by your supervisor or manager.

2. Approval Process

Submit your recorded hours for approval according to your company's policy. This usually requires a supervisor's sign-off.

3. Filing The Claim

File your overtime claim with your company's payroll department, using the correct forms and documentation as required.

Conclusion

Overtime pay is a legally protected right for many employees in Malaysia. Both employers and employees should be well-versed in the rules governing OT pay rates, claims, and eligibility. This ensures compliance with the law and promotes fairness in compensation. By clarifying these aspects, businesses can create a positive work environment, and employees can safeguard their rights while receiving fair compensation for their hard work.

This content is intended for general informational purposes only and does not constitute legal advice. Special thanks to the team at Donovan & Ho for their expertise in providing and verifying the facts presented here.

Stay current on Malaysian employment laws and regulations as you begin your job search on Hiredly!

By Kimberly Chang on 2023-11-27 at 7:11 AM