Malaysia's basic labour law for Employers:

1.Working hours permitted under Akta Kerja 1955:

a.A worker cannnot work for directly for 5 hours non stop without a minimum rest time for 30 minutes.

b. A worker cannot work more than 8 hours per day and more than 48 hours per week.

2. What are the statutory deductions from an employee's salary:

a. Employee's contribution to Employees Provident Fund (EPF).

b. Emploee's contribution to Social Security Organization (SOCSO).

c. Monthly Income Tax Deductions (PCB).

3. Types of Permitted Leaves: Annual Leaves (AL), Medical Certificate (MC) & Maternity Leaves:

a. Annual Leaves

Length of service                                       A/L Entitlement

-less than 2 years                                                  8 days

-more than 2 but less than 5 years                  12 days

-5 years and above                                               16 days

b. Medical Certificates (MC)

 

Overtime Rate according to Malaysian Employment Act 1955.

For staff members whose monthly salary is < or = to RM2,000/-, the Company pays the following overtime rate which is in accordance to the rate provided by the Malaysian Employment Act 1955 as follows:-

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i. Overtime on Normal Working Day

The overtime rate shall be 1.5 x Hourly Rate x Number of Hours Worked

 

ii. Overtime on Off-Day 

a. Not exceeding half his normal hours of work:-

    0.5 x ordinary rate of pay (half-day's pay)

b. More than half but up to eight (8) hours of work:-

    1.0  x ordinary rate of pay (one day's pay)

c. In excess of eight (8) hours:-

    1.5 x hourly rate x number of hours in excess of 8 hours

   Remarks: It is applicable to Saturday & Sunday as off-day.

 

iii. Overtime on Rest Day

a. Not exceeding half his normal hours of work:-

   0.5 x ordinary rate of pay (half-day's pay)

b. More than half but up to eight (8) hours of work:-

    1.0  x ordinary rate of pay (one day's pay)

c. In excess of eight (8) hours:-

    2.0 x hourly rate x number of hours in excess of 8 hours

    Remarks: It is applicable to shift employees where they work for a specific period of time.

 

iii. Overtime on Public Holiday

a. Less than normal hours of work:-

    2.0  x ordinary rate of pay

b. In excess of normal hours of work:-

    3.0  x hourly rate x number of hours in excess of 8 hours

    Remarks: Do determine your company's observed public holidays.

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Good Day, Tianjin, China!