10/06/2026
Working extra hours is one thing. Getting paid correctly for it is another. 🕐
Under the Employment Act 1955, employees earning below RM4,000/month are legally entitled to overtime pay — and it must be calculated using the right rates and the right hours.
📌 Normal working day → 1.5x hourly rate
📌 Rest day → 2x hourly rate
📌 Public holiday → 3x hourly rate
Hourly Rate = Monthly Salary ÷ 26 ÷ 8
OT Pay = Hourly Rate × OT Hours × Rate Multiplier
The formula is straightforward — but only if the hours are tracked correctly in the first place.
With PeopleX, employees clock in and out via our HR app, OT hours are recorded automatically, and our payroll team handles the full calculation directly. No manual tracking, no compliance risk.
HR Software + Payroll Outsourcing, bundled together. DM us to learn more. 👇