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11/06/2010 15:38:53
Re: Calculation of salary, OT, Annual leave Payout & Unpaid Leave

Just want to confirm the calculation of salary, OT, Annual Leave Payout and Unpaid Leave as am confused towards the base of calculation.

For the example:
(a) working hours from Mon - Friday: 8am to 5pm (half hour rest), and Alternate Sat : 9am to 1:00pm.
(b) Staff earns Basic salary = RM2500 + Travelling allowance RM300 (Total salary = RM2800) and started work on 18Jan2010

1) Is the salary calculation affected by the alternate saturday work? Or is the salary calculation as follows:-

Jan Salary = 2800/31*14 working days = RM1264.51

2) When does the company use 26 days as the base for salary calculation? Is it only for employees earning Gross Salary < RM1500 under the Employment Act? Or can the company use the no of days in the
month as the base with consideration of the alternate Saturday worked.

3) Does OT calculation take basic salary (RM2500) or Gross salary (RM2800) as the base?

4) Is the this OT calculation correct? Eg. If staff work an extra 2hrs on the one alternate Saturday.

Daily wage = RM2800/ 26 = RM107.69 per day (To use 31 days instead of 26 if OT is in Jan? Also does alternate saturdays affect this way of calculating?)
Hourly rate = RM107.69/ 8.5 hours (again what hours to use as alternate saturdays is being worked?) = RM12.67 per hour
OT To pay = RM12.67*1.5 times * 2 hours = RM37.98

5) If staff is entitled to 10 days of annual leave payout when they resign, how is the calculation like? Is it based on Basic Salary or Gross Salary? And the base of calculation to be used is 26 days or the 31 days or 30 days? Is the calculation below correct?

Annual Leave payout = RM2800/26*10 days of annual leave = RM1076.92

6) Does Annual Leave Payout include the resignation notice period? ie if Staff gives resignation notice of 1 month on 31 May, hence last day on 30June, is the payout calculated for 5 months or 6 months?

7) If a staff takes Friday and the working alternate Saturday as Unpaid Leave, can we consider it as TWO full day leave to discourage leave being taken on Saturday? Is the calculation affected by the alternate saturday or is the following correct?

Unpaid Leave = RM2800 (Again gross or basic?)/ 26 (Or 31or 30?) * 2 days = RM215.38

Lastly can I use the all the following calculation methods above for all staff either covered or not covered by the Employment Act ie
Sorry for such long questions but the industry practice of using 26 days, and Labour requirement of using 31 days/ no of days in the month is very confusing. Thank you for your answer in advance.

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KL Siew
11/06/2010 17:03:44
To make the long story short, you wont go too far wrong if you were to it like this:

1. For salary calculation, no pay leave, you use the number of days in the month. You calculation in 1) is correct.

2. For annual leave, sick leave, overtime you use 26. This is stated in Section 60I of the Employment Act.

By the way, the employee with basic salary of RM2500 is in fact no covered by the Employment Act. However, if your company is still willing to pay the overtime rate according to the EA, then it is well and good.
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