For employees paid on a monthly basis, overtime entitlements under the Employment Act are as follows:

1. **Working in excess of normal working hours on a normal work day: **1.5x hourly rate of pay**

2. **Rest day (follow normal working hours): **

Where work does not exceed half his normal hours of work: 1 day's wages at the ordinary rate of pay

Where work is more than half but does not exceed normal hours of work: 2 days' wages at the ordinary rate of pay

3. **Rest day (working in excess of normal working hours):** 2x hourly rate of pay**

4. **Public Holiday (follow normal workings hours): **1 additional day wages at ordinary rate of pay*

5. **Public holiday (excess of normal working hours): **3x hourly rate of pay**

* “**Ordinary rate of pay**” - employee’s “daily” wage, which is calculated by dividing the employee’s monthly salary by 26.

** “**Hourly rate of pay**” - the ordinary rate of pay divided by the normal hours of work.

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**How to calculate Ordinary Rate of Pay and Hourly Rate of Pay? **

For example, an employee who works 8 hours a day for a monthly salary of RM2,600.00:

1. He/she will have an **ordinary rate of pay** of **RM100** (*RM2,600 / 26 = RM100*).

2. The same employee’s **hourly rate of pay** would be **RM12.50** (*RM100 / 8 hours = RM12.50*)

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In the event that an employee was asked to work on a public holiday during his/her normal working hours, his/her overtime payment for that day would be **RM200** (*RM100 x 2*).

Do note that employees not under the Employment Act are not entitled to overtime payments.

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**How to process Overtime Days or Overtime Hours in Talenox?**

1. Under **Payroll Settings > Process Payment - Step 2**, head to **Hourly/Daily Attendance tab** and choose either "**Overtime Days**" or "**Overtime Hours**" pay item from the list.