An Idiots Introduction to Overtime Payments

The category of workers included in the First Schedule are any person, irrespective of his occupation, who has entered into a contract of service with an employer under which such person’s wages do not exceed RM2,000 a month,and any person who, irrespective of the amount of wages, has entered into a contract of service with an employer and amongst others, is engaged in manual labour or is engaged as a domestic servant. An ‘employer’, is defined as ‘any person who has entered into a contract of service to employ any other person as an employee, and includes the agent, manager, or factor of the first mentioned person. 

Overtime payments are governed by the Employment Act and only workers who earn relatively low wages are entitled to the statutory entitlements under the EA,

Scale of wages for employer to pay Overtime payments to theirs employees.

(refer to Schedule 1 of Employments Act - details on the definition of “employee” protected under the Act)
  
Employees with the maximum salary of RM2,000.00 are entitled for their payment of OT if they fulfill the following requirements:-

(i) Normal working days (eg: Monday - Friday)
If the employee worked beyond his or her time of work, as stipulated in his or her contract of service, he or she should be paid 1 1/2 time of his/her normal hourly rate according to Section 60A(3)(a) EA.

(ii) Satuday and Sunday (rest day)
a) If a daily rated worker (day based salary) works not more than half of his normal daily working hour, he is entitled to 1 day's wages. If more than half a day, then he is entitled to 2 days of wages.

b) If a monthly rated worker (monthly salary basis) works not more than half of his normal working hours, he is entitled to 1/2 a day of wage. If it is more half of his normal working hour, he then is entitled to 1 day of wage.

(refer to Section 60(3)(a)(i) and (ii) of EA)

(iii) Public Holidays
According to Section 60D(3)(a)(i) and (ii) EA, employees are entitle to 2 times of his daily rate if he works on public holidays.

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