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salary calculation formula and unpaid leave formula

Tue, 20 Jun 2017 09:43:52 AM  (Last updated: Tue, 20 Jun 2017 12:04:07 PM)

to whom it may concern.

Good Day!

hi would like to check as per law the salary should count as follow calendar or 26 days?

and what is the unpaid leave formula? kindly guide me on this as we just open new company new medical centre.

i need to create policy for this.

Thanks in advance!


Kyson Teh
Tue, 20 Jun 2017 10:20:00 AM

Hi, please allow me to use your thread for almost same topic too. I hope some one can clarify this question for me.

If company is using 26 days to calculate for salary, then what will happen in February for example in Feb 2017, total working days excluded Sunday is only 24 days. 

Given cases like if the employee is a new joined employee and they start work at 2nd of Feb, with Monthly Salary as RM2500

The calculation will be : 2500/26*23 = 2211.54

But, if we calculate per day = 2500 / 26 = 96.15 

and since this employee is not working for 1 day in that month, which is 1st of Feb, by taking his full month salary 2500 - 1 working day ( 96.15) 

2500 - 96.15 = 2403.85 

Don't that means employer is under paid this employee ?

I am quite confuse about salary calculation, hope administrator can clarify this for me.

(*Or maybe I am wrong in calculate in this way)

KL Siew
Tue, 20 Jun 2017 12:04:07 PM

Actually, there is no formula for salary calculation. For example, if an employee's monthly salary is RM2500 per month, he should get RM2500 that month whatever methods of calculation you used, no more and no less. I think the easiest and most accurate way to calculate is to divide by the number of days of the month. You can use whatever method, but if you pay more, the boss may not be happy, if pay less, the employee will complain.

Don't be confused by the number 26, 26 is used mainly for payment of benefits under section 60i of Part 12 of the EA, like annual leave, sick leave, holiday pay and so on.

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