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Anna
15/09/2009 13:27:11
Re: Enquiries about unpaid leave deduction calculation

Hi there. I recently found out that my company applies different calculation methods for both unpaid leave and day pay. For example, lets say my monthly salary is RM2000 and I worked for 25 days, the calculation they used is 25/31 * Rm2000 = RM1612 (1 day RM64.50). But then for 1 day of unpaid leave, they used another formula to calculate which is 1/26 * RM2000 = RM76.90. How come the figure for leave is so much higher than daily pay rate?
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CK
ckkong.my@gmail.com
15/09/2009 15:28:22
There should always be 1 single calculation method for rate of pay irrespective of reimbursement or deduction cases. Note that although the formula of pay / 26 by EA 60I is not compulsory to be used, any other formula used shall not work out a lower rate of pay.

"EA 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

(2) An employer may adopt any method or formula other than the method or formula in subsection (1A), (1B) or (1C) for calculating the ordinary rate of pay of an employee; but the adoption of any other method or formula shall not result in a rate which is less than any of the rates provided in the subsections."
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Anna
04/11/2009 13:07:07
Hi CK. Thanks for clarifying. I have already informed my company of the above law and yet they stay firm that the unpaid leave deduction is /26days while monthly salary paid is by /31 days. Can I bring this matter to the Labour Dept? Will they help?
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