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OverTime Calculation

Sha01
Member
Thu, 02 Feb 2017 01:50:59 PM  (Last updated: Thu, 02 Feb 2017 06:15:49 PM)

Hi good evening. I would like to know the actual terms to calculate the overtime hours since we are working for 8.40 hours per day. Overtime is 2 hours from Mon - Thur only.

I have 1 question to check too... a) Can the overtime calculation convert it to minutes. i.e: Salary / 26days / 8.40 hrs (520minutes) x 1.5 x overtime hours 

Thank you.

KL Siew
Administrator
Thu, 02 Feb 2017 03:12:19 PM

The formula provided by the Employment Act is (salary/26/8) x 1.5 per hour. If your method can produce t  result not less favourable than the formula, I think it is OK.

Sha01
Member
Thu, 02 Feb 2017 03:40:31 PM

Hi.. thanks for your replied.

The method calculation showed less overtime $$ received when compare with the actual calculation (salary/26/8 x 1.5 per hour).

We have highlighted this matter to our management but they said since we work 8.40 hours per day, the calculation for overtime also bases on minutes instead of hours.

Thanks. 

KL Siew
Administrator
Thu, 02 Feb 2017 06:15:49 PM

Refer to Section 60i(2) of the EA:

"(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. "

Try to sort the issue out with the company. If not possible, you may have to bring the matter up with the Labour Department.

  This topic is closed