Employment Law Guide
Akta Kerja 1955: Overtime Provisions Deep Dive
Complete guide to Malaysia's Employment Act 1955 overtime rules, entitlements, and the 2022 amendments. Updated for 2026.
Who Is Covered?
The Employment Act 1955 applies to:
- Employees earning ≤RM4,000/month — all provisions apply fully
- Manual labourers — regardless of salary level
- All employees (post-2022 amendment) — core protections on working hours, holidays, termination, and maternity now extend to all workers regardless of salary
Note: Domestic servants and certain categories have separate provisions under the Act.
Section 60A — Overtime Limits & Rates
Maximum Overtime: 104 Hours/Month
No employee shall be required to work overtime exceeding 104 hours in any one month.
| Day Type | OT Rate |
|---|
| Normal working day | 1.5× hourly rate |
| Rest day | 2.0× hourly rate |
| Public holiday | 3.0× hourly rate |
Hourly Rate Calculation
Ordinary rate of pay ÷ 26 ÷ normal hours of work per day
Post-2022: Normal working hours reduced from 48 to 45 hours per week.
Section 60C — Shift Work
For employees engaged in shift work:
- Working hours may exceed 8 hours/day or 45 hours/week provided the average over a period of 3 weeks does not exceed 45 hours/week
- No shift shall exceed 12 consecutive hours (inclusive of breaks)
- Employees must receive a rest period of not less than 30 consecutive minutes for every 5 consecutive hours of work
- Shift workers are entitled to the same OT rates when exceeding normal shift hours
Section 60D — Public Holidays (11 Gazetted)
Every employee is entitled to 11 gazetted public holidays per year at ordinary rate of pay:
- National Day (31 August)
- Birthday of the Yang di-Pertuan Agong
- Birthday of the Ruler/Yang di-Pertua Negeri
- Workers' Day (1 May)
- Malaysia Day (16 September)
- Plus 6 more from the list of gazetted holidays chosen by the employer
If required to work on a public holiday: entitled to 3× the hourly rate of pay for hours worked, in addition to the holiday pay.
Section 60E — Annual Leave Entitlement
| Years of Service | Annual Leave (Days) |
|---|
| Less than 2 years | 8 days |
| 2 – 5 years | 12 days |
| More than 5 years | 16 days |
Leave is pro-rated for incomplete years of service. Unused leave may be forfeited if not taken within 12 months unless otherwise agreed.
Section 60I — Record Keeping (6 Years)
Employers must maintain employment records for a minimum of 6 years after the records are made. Records must include:
- Hours of work (normal and overtime)
- Wages paid (including OT, allowances, deductions)
- Leave records (annual, sick, maternity/paternity)
- Employment contracts and terms
- Rest day and public holiday records
Records must be kept at or accessible from the place of employment and produced upon request by the Director General of Labour.
2022 Amendments — Key Changes
- Working hours reduced: Maximum from 48 to 45 hours/week
- Expanded coverage: Core protections (working hours, holidays, termination, maternity) now apply to all employees regardless of salary
- Flexible Working Arrangements (FWA): Employees may apply in writing; employers must respond within 60 days
- Maternity leave: Increased from 60 to 98 days
- Paternity leave: 7 consecutive days (new provision)
- Discrimination prohibition: Explicit protection against employment discrimination
- Forced labour: New offence with penalties up to RM1,000,000 fine and imprisonment
Penalties for Non-Compliance
| Offence | Penalty |
|---|
| Failure to pay OT / underpayment | Fine up to RM50,000 per offence |
| Exceeding OT limits (104 hrs/month) | Fine up to RM50,000 |
| Failure to keep records (Section 60I) | Fine up to RM50,000 |
| Failure to grant public holidays | Fine up to RM50,000 |
| Forced labour | Fine up to RM1,000,000 and/or imprisonment up to 5 years |
Repeated offences may result in higher fines and/or imprisonment. The Director General may also issue compliance orders.
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