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31/10/2017 16:14:15
Re: Overtime entitlement and calculation

Hi, need advise, we paid overtime to staffs which are working after 6pm, we paid to staffs which basic RM 2000 below and also above RM2000.

we paid with same fixed rate of RM8 for staffs which basic RM 2000 below and also above RM2000. I read Act 1955, we should pay 1.5 times instead fixed rate.

can you give some advise is this allow under labor law?

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KL siew
31/10/2017 17:40:57
The OT formula is (salary/26/8) x 1.5 for OT hourly rate on normal working days
For OT on rest days is (salary/26/8) x 2;
For OT on public holidays (salary/26/8) x 3.
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01/11/2017 12:32:40
Hi Siew,
May i know does this calculation is a must?
for those above RM2K, should we follow this rules as well? Can we use fixed rate? as Act 1955 covered for those RM2k below. Can we get staff to sign contract which mentioned OT is fixed rate? Please help me to understand this thanks
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KL siew
01/11/2017 14:36:44
1. For manual workers irrespective of their salary, it is a must.
2. For non manual workers, for those with salary more than 2K, the parties can agree on the rates, which means if these workers are satisfied with the fixed rate then it may be OK.
Refer to the First Schedule of the EA about manual and non manual workers.
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