RegisterLog In

Overtime Calculation

Sha01
Member
Thu, 06 Dec 2018 02:58:55 PM  (Last updated: Wed, 12 Dec 2018 06:20:14 PM)

Dear MLL,

Can i know the formula for overtime (OT) calculation?

Can the basic be adjusted everytime got OT claims?

Example: Basic salary :1500 / OT is 250.00

Basic salary after adjusted : Basic:1250 + OT: 250.00 = 1500.00

Can company reduce the basic salary in order to include the ot as a basic?

Please advice.

Thank you.

Regards

mdkamil
Contributor
Thu, 06 Dec 2018 03:42:39 PM

Hourly Rate for OT calculation is ((Basic Salary/26 days)/8) x 1.5

Not supposed to add the OT amount to Basic Salary. 

Basic Salary attracted EPF, while OT does not.

Sha01
Member
Thu, 06 Dec 2018 05:06:10 PM
Originally posted by mdkamil on Thu, 06 Dec 2018 03:42:39 PM

Hourly Rate for OT calculation is ((Basic Salary/26 days)/8) x 1.5

Not supposed to add the OT amount to Basic Salary. 

Basic Salary attracted EPF, while OT does not.

Noted. 

But the company have adjusted the basic salary by bring it lower and add the ot to make it as basic salary. 

Example; current basic is Rm1500 and OT is Rm250.

They have calculated as Rm1500 - Rm250 = Rm 1250 (basic) + Rm 250 (ot).

Is't correct way for the company to lowwr the basic whenever got OT claims?

Thank you.

Regards.  

mdkamil
Contributor
Wed, 12 Dec 2018 06:15:40 PM
Originally posted by Sha01 on Thu, 06 Dec 2018 05:06:10 PM

Noted. 

But the company have adjusted the basic salary by bring it lower and add the ot to make it as basic salary. 

Example; current basic is Rm1500 and OT is Rm250.

They have calculated as Rm1500 - Rm250 = Rm 1250 (basic) + Rm 250 (ot).

Is't correct way for the company to lowwr the basic whenever got OT claims?

Thank you.

Regards.  

You should not adjust the basic salary as and how you like.

OT is supposed to be an additional pay above basic salary. If the basic salary is RM1500 the employee should be paid RM1500 + OT pay.

What is the point of doing OT if you still get the same pay?

mdkamil
Contributor
Wed, 12 Dec 2018 06:20:14 PM

Example for an employee with basic salary of RM1500. For a particular month the employee did 54 hours of overtime work.

So the total gross pay should be basic salary + OT pay

Basic salary is RM1500

OT pay is ((1500/26)/8) x 1.5 x 54 hours = RM584.13

Total gross pay (1500 + 584.13) = 2084.13