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Overtime or Allowances

Julie Wong  
Guest
Fri, 05 Sep 2008 05:53:32 PM  (Last updated: Sat, 06 Sep 2008 10:48:51 AM)

Dear KL Siew,

My company is an event organiser and normally staff will require to work during evenings or weekends. Company provide staff an allowance of RM10 per hour on weekday after office hours and RM100 during weekends.Is it compulsory for Company to pay overtime rate instead of an allowance for monthly paid staff. How is the calculation for overtime if staff hired are executive level and their basic salary is RM1,800.00.

Thank you.

KL Siew
Administrator
Fri, 05 Sep 2008 07:39:03 PM

You may adopt your method as long as it is not less favourable than the overtime rate. For example, the overtime per hour for an employee with salary of RM1800 will be (1800/26/8) x 1.5 = about RM13.00. This is just a guide. It shows RM10 may not be quite enough for an employee with RM1800 salary. If you pay RM10 to everybody irrespective of their salary, then same may be happy while some may not.

Julie Wong
Guest
Sat, 06 Sep 2008 09:11:27 AM

Is there such a rule that overtime is based only if monthly salary is below RM1,500.00. Thank you.

KL Siew
Administrator
Sat, 06 Sep 2008 10:48:51 AM

It is the Employment Act that covers non manual employees with salary not more than RM1500. Please read the First Schedule of the Employment Act.

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