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FION
18/08/2009 16:25:34
Re: Unpaid Leave

Hi,

I would like to enquiry about the unpaid leave calculation. Understand that it should be divided by number of days in a month (30 or 31 days). But what my company practicing is divided by 26 days (including staff who are earning less than RM1500 per month).

Is it against the labour law?

Looking forward for your reply.

Thanks.
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CK
ckkong.my@gmail.com
18/08/2009 20:52:55
Sec 60I
(1A) Where an employee is employed on a monthly rate of pay, the ordinary rate of pay shall be calculated according to the following formula:

monthly rate of pay / 26 (days)

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KL Siew
kl_siew@yahoo.com
18/08/2009 20:54:46
It is not so much the question of whether it is against the law or not. It is simply not accurate. For example, a worker with monthly salary of 1500, his average daily salary for say the month of June should be 1500/30 = 50. If you divide it with 26, you are in fact deducting more than you otherwise should.
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FION
19/08/2009 17:22:02
If we divide it by 26 days, it is considered as less favourable to employees, right? we should do on or more favourable to employees instead of lesser?

Thanks.
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FION
19/08/2009 17:23:26
And the Ordinary rate of pay (divided by 26) is used for the calculation of OT, AL, MC, Maternity allowance only, right?
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KL Siew
19/08/2009 21:07:09
It is also so much about more favourable or less favourable. It is just simple arithmetic calculation, got to be accurate. For example, he worked half a month in June, by right he should get (1500/30) x 15 =750.00, are you going to pay him (1500/26) x 15?

For your second question, you are absolutely right.
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CK
ckkong.my@gmail.com
20/08/2009 11:18:07
The 26 days by Employment Act is based on the assumption that there is 1 rest day for every week. Therefore, both the following formulae are correct:
1) (1500/30) x 15 = 750
2) (1500/26) x 13 = 750
Note that the 13 days in (2) are after deducting 2 rest days for 2 weeks.
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KL Siew
20/08/2009 12:22:54
CK, concerning the formula suggested by you in (2), what formula wouldl you give when someone were to ask:

(a) Those on 5-day week?
(b) Those in the month of February, working 5 days or 6 day week?
(c) Those in leap year Feb, working on 5 day or 6 day week?
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CK
20/08/2009 12:56:29
Five day week has become more and more popular ever since the economic crisis in 1997, where the working days have been reduced from 6 days to 5 days per week in order to reduce the operating cost. It has been introduced with the fact that the working hours are actually being increased by 1 hour per day in average to compensate the additional 1 day off (per week). Even though the formula of pay/26 days sounds controversial to the actual working days as of quesion 1) to 3), it is widely used with a provision to standardize the pay per day and avoid dispute especially in a MNC which consists of a large number of staff from different salary range, working days and working hours.
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