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25/02/2009 15:39:18
Re: calculation of salary


I've read previous posts regarding salary calculation. But I'm a bit confused concerning basic salary/no. of days. Does the number of days follow the month or is it divided by 26 days (as per the employment act)? Do u have any idea why it's 26 days? Coz I have heard companys dividing it by 21 or 22 days.

My current problem is:
Employee started work on 19th January 2009. Calculation for January salary was done as follows:
RM1600/30 days x 8 working days. (not inclusive of Saturday and Sunday and the CNY holidays)
Is my calculation wrong as I have been queried by the staff? The number of days divided by the salary was determined by my boss.
Hope you could give me some insight into this matter.

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KL Siew
25/02/2009 16:13:52
Always remember, 26 is used only for the calculation of ORP (Ordinary Rate of Pay) for those matters in Part 12 of the Employment Act like overtime, annual leave pay, sick leave pay, holiday pay and so on. The formula is given in Section 60I of that Act. Read Part 12 at Yes, some companies do use 21 or 22 because of 5-day week.

For calculation of salary, just simple a arithmetic, you use the actual number of days in that month. In your case, your calculation appears to be not right. It should be (1600/31)x13 (19 -31 comes to 13 days rest days included) =RM670.97 If you were to calculate his pay for 1 - 18 Jan, it will come to (1600/31)x 18 = 929.03. The two totals 670.97 + 929.03 will come to exactly 1600. Is this OK? Your calculation will come to only RM426.67, looks like that staff is short-changed.
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25/02/2009 16:27:13
Thanks for your response.

Just to confirm your info and my understanding, the calculation of 26 days (aka 21 or 22 days for certain companies) only applys for OT, annual leave pay and etc.
But for salary calculation (and monthly travelling allowances?), the actual number of days in that month is used.

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KL Siew
25/02/2009 16:37:41
That's correct. I strongly recommend that you get an official interpretation from the Labour Department also.
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08/02/2013 22:03:44
Hi, just want to double check, one of my friend started working in a company from 8th Nov 2012 to 30th Nov 2012 and his basic pay is RM6,480. The company pay him basic pay for that month is RM4,968 . Is this correct?

He took one unpaid leave in January 2013, his company calculate his unpaid leave as RM249.23 Is this correct?

Hope you could give some advise.

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