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# Overtime Calculation with Different Rates

As you may be aware, overtime has a different rates for rest days and public holidays. With that said, there are 3 separate rates:

Normal work day: 1.5x

Rest day: 2.0x

Public holiday: 3.0x

To make sure things are clear, for example, Andy signed an employment contract where his working hours are from 9am to 6pm from Monday to Friday. This would mean that anything outside of this is deemed as Overtime (9am to 6pm).

On regular work days, this would mean that for every hour Andy works after 6pm, he will get a multiplier of 1.5 to his hourly rate. This is the straightforward part.

Rest Days, ie. Sunday.

Anything less than half a day will be calculated based on the regular rate per hour, no multiplier.

Anything more than half a day of work will entitle the employee to get a full day's worth of pay.

Anything more than a day's worth of work, ie. after 6pm, the hourly rate will be double the regular rate.

Public Holiday

Calculation immediately starts at x2 for the entire day.

Anything after 6pm will be triple the regular rate.

Example

Andy has a basic salary of RM 3,000 per month, contract states that his working hours are from 9am to 6pm, Monday to Friday.

First, we should find out Andy's hourly rate (we're going to fix days at 26 for this example):

Daily rate: RM 3,000 / 26 = RM 115.38

Hourly rate: RM 115.38 / 8 = RM 14.42

Scenario 1:

Regular working day, Andy worked from 9am to 9pm (3 hours of overtime).

Since it's a regular working day, Andy will be paid an Overtime of:

RM 14.42 (hourly rate) x 1.5 (overtime multiplier) x 3 hours = RM 64.90

Scenario 2:

Sunday / Rest day, Andy worked from 9am to 9pm (3 hours of overtime).

The daily rate as calculated above is RM 115.38.

Overtime of 3 hours:

RM 14.42 (hourly rate) x 2.0 (overtime multiplier) x 3 hours = RM 86.52

Meaning in total, Andy will be paid RM 201.90 for working from 9am to 9pm on a rest day.

Scenario 3:

Public holiday, Andy worked from 9am to 9pm (3 hours of overtime).

The daily rate here is double the usual rate:

RM 115.38 x 2 = RM 230.76

Overtime of 3 hours:

RM 14.42 (hourly rate) x 3.0 (overtime multiplier) x 3 hours = RM 129.78

Meaning in total, Andy will be paid RM 360.54 for working from 9am to 9pm on a public holiday.