How to Calculate Overtime Pay

In BrioHR, there are three methods to calculate the basis for overtime (OT) pay, specifically for the Malaysia payroll center:

  1. Fixed Number of Days
  2. Working Days in the Current Calendar Month (including public holidays)
  3. All Days in the Current Calendar Month (including public holidays)

Understanding how the Ordinary Rate of Pay (ORP) is calculated for each method is crucial. If you need guidance on setting up the basis for overtime calculations, please refer here.

BrioHR supports standard overtime rates for Normal Days, Rest Days, and Public Holidays.

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NOTE:

Final Overtime Earnings will be rounded to the nearest figure.

1. Fixed Number of Days

Monthly Salary

Ordinary Rate Pay (daily rate)  = Salary/ (Number of working days set in the system)

Example:

  • Salary: RM 1,800
  • Overtime Fixed Days set in the system: 26
  • Normal working hours: 8 hours/day
  • Overtime hours worked: 6

Calculation:

Daily rate = RM 1,800 / 26 = RM 69.2307

Hourly rate = RM 69.2307 / 8 hours = RM 8.6538

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2. Working Days in the Current Calendar Month

Monthly Salary

Ordinary Rate of Pay (daily rate)= Salary/ (Total days in the month - Total weekends in the month) 

Example:

  • Salary: RM 1,800
  • Month: March 2023 (23 working days for a 5-day workweek)
  • Normal working hours: 8 hours/day
  • Overtime hours worked: 6

Calculation:

Daily rate = RM 1,800 / 23 = RM 78.2608
Hourly rate = RM 78.26 / 8 hours = RM 9.78

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3. All Days in the Current Calendar Month

Formula:
Ordinary Rate of Pay (daily rate) = Monthly Salary(Total calendar days in the month)

Example:

  • Salary: RM 1,800
  • Month: March 2023 (31 days in the calendar month)
  • Normal working hours: 8 hours/day
  • Overtime hours worked: 6

Calculation:
Daily rate = RM 1,800 / 31 = RM 58.0645
Hourly rate = RM 58.0645 / 8 hours = RM 7.2580

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Need Assistance?

If you have any questions or require assistance, please reach out to our support team via live chat or email us at support@briohr.com.