Compliance
Know Your Work Hours and Overtime Pay Rights in Malaysia

The Employment Act 1955 outlines standard working hours, overtime rates, and rest periods to ensure a balanced work-life environment. Recent amendments have updated several provisions, including reduced working hours and expanded overtime eligibility.


Standard Working Hours


As of September 2023, Malaysia’s standard workweek has been reduced to 45 hours, down from the previous 48-hour limit. Key regulations include:


   - Daily limit: Employees should work no more than 8 hours per day.

   - Spreadover period: Total working hours, including breaks, cannot exceed 10 hours in a day.


Overtime Eligibility and Rates


As of January 2023, overtime eligibility includes all employees earning up to RM 4,000 per month. Overtime work is compensated at the following rates:


   - Weekdays: 1.5 times the regular hourly rate

   - Rest days: 2 times the hourly rate

   - Public holidays: 3 times the hourly rate


Employees may work a maximum of 104 overtime hours per month, as regulated by the Employment (Limitation of Overtime Work) Regulations 1980.


Rest Periods, Night Shifts, and Weekend Work


Employees are entitled to one rest day per week, which may fall on a weekend but is not mandated. Rest periods for daily work include a minimum 30-minute unpaid break after five consecutive work hours. For shift workers, any continuous 30-hour period qualifies as a rest day.

While the Act doesn’t mandate night shift allowances, employers must adhere to safety standards under the Occupational Safety and Health Act 1969 to protect the well-being of employees working these hours.


Special Considerations


Employers in industries requiring continuous operations may apply for alternate arrangements for rest days and breaks through the Ministry of Human Resources. Compliance with working hours and overtime guidelines not only promotes employee welfare but also ensures legal adherence to Malaysia’s employment standards.