Overtime Pay in Malaysia: What Every Employee Should Know Under the Employment Act 1955

Written by: Izz Murtada

If you’ve ever stayed back late at work, come in on your day off, or worked through a public holiday, you’ve probably wondered whether you’re being paid fairly for it. The good news is that Malaysia’s Employment Act 1955 actually spells out clear rules on overtime. The tricky part is that most employees have never read them, and employers don’t always explain them either.

This article walks through what the law says about overtime, whether you’re entitled to it, how much you should be getting paid, and what to do if your employer isn’t following the rules.

 

1.What Count as Overtime

Under Section 60A(3)(b) of the Act, overtime is any hour of work you do beyond your normal hours of work per day. Your normal hours are whatever’s been agreed in your employment contract, as long as they fall within the limits the law allows.

There’s a detail many employees don’t realise: if your work stretches beyond a “spread over period” of ten hours in a day, everything from that ten hour mark onward is treated as overtime, even if it doesn’t feel like a clean block of extra hours. So if your workday technically spans more than ten hours from start to finish, including breaks, you may already be owed overtime pay you’re not aware of.

For example, if you start work at 8.00 a.m. and your working day stretches beyond the 10-hour spread-over period, you may have overtime hours even if you don’t think of the extra time as a typical “stay-back” period. 

 

2.Who is Actually Covered

This is the question that catches a lot of people off guard, because not every employee in Malaysia is covered by the Act’s overtime protections.

The First Schedule of the Employment Act sets a salary limit. If you earn more than RM4,000 a month, you are generally not covered by the Act’s overtime rules under Sections 60, 60A, and 60D.This means your employer is not required by the Act to pay you overtime for extra hours worked. However, you may still get overtime pay if it is stated in your employment contract or company policy.

But there’s an important exception. No matter how much you earn, you may still be covered by the overtime rules if you:

• Do manual work, such as working as an artisan or apprentice.
• Drive or operate a vehicle used to transport passengers or goods for business.
• Supervise employees who do manual work.

So even if your payslip shows RM6,000 a month, if your job fits one of these descriptions, such as supervising a team of factory workers, you may still be legally entitled to overtime pay. It’s worth checking this against your own role rather than assuming your salary alone decides the matter. 

 

3.How Much Overtime Are You Owed

This is the part most employees actually want to know, since it affects what should be showing up in their pay. The rate depends on when the extra work happens.

Regular working day. Any overtime you work beyond your normal hours should be paid at a rate of at least one and a half times your hourly rate of pay.

Rest day. If you’re asked to work overtime on your designated rest day, beyond your normal hours, you’re entitled to at least two times your hourly rate.

Public holiday. If you work overtime on a gazetted public holiday, beyond your normal hours, the rate goes up to at least three times your hourly rate.

In short, the more the extra work eats into what should be your personal time, the more you’re entitled to be paid for it.

Keep in mind that simply working on a rest day or public holiday isn’t automatically the same as overtime. Those days have their own separate pay rules under Sections 60 and 60D. Overtime only applies once you’ve gone beyond your normal hours for that particular day.

 

4.There Are Limits to How Much You Can Be Asked to Work

Your employer can’t ask you to work unlimited overtime, even if you’re willing. The Minister can set a maximum number of overtime hours allowed, and employers who push beyond that limit without proper approval may be breaking the law.

There’s also a hard limit under Section 60A(7): except in genuine emergencies, such as accidents, urgent repairs, or situations essential to public safety, no employer can require you to work more than twelve hours in a single day, no matter how overtime is being calculated.

If your job is inherently inactive or standby in nature, these particular overtime rules may not apply to you in the same way, so it’s worth understanding how your specific role is classified.

 

5.What You Can Do If You’re Not Being Paid Correctly 

The law doesn’t treat this lightly. Under Section 100(2) of the Act, it’s an offence for an employer to fail to pay overtime wages that are owed. If the matter goes to court and the employer is found guilty, they can be ordered to pay the outstanding overtime, and that amount is recovered in the same way a fine would be.

If you suspect you’re not being paid correctly, a few steps can help:

• Keep your own record of hours worked, especially on rest days and public holidays
• Compare your payslip against the rates outlined above
• Raise the discrepancy with your HR department first, in writing if possible
• If it isn’t resolved, you can bring the matter to the Labour Office (Jabatan Tenaga Kerja) for further action

Knowing Your Rights Is the First Step

Knowing where you stand and what rate you’re entitled to puts you in a stronger position when you’re asked to work beyond your normal hours or on a day off. Knowing the rules doesn’t just protect your paycheck. It gives you the confidence to ask the right questions when something doesn’t add up.

Of course, payroll and compliance can get complicated, especially across different roles, wages, and work arrangements. That’s where a proper HR and payroll partner can help. At Kita Strategies, we help companies across Malaysia manage overtime, rest day, and public holiday pay accurately and in line with the Employment Act.

If you’re an employer wondering whether your payroll setup is keeping up with these requirements, let’s have a conversation.