1. What is Holiday Pay Calculation?

The Holiday Pay calculation determines the additional compensation employees receive for working on public holidays in Malaysia. The Employment Act 1955 mandates that employees receive extra pay when working on public holidays.

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

• Daily Rate — Employee's normal daily wage in MYR
• Multiplier — Typically 2x or 3x depending on employment terms and specific holiday

Explanation: The multiplier accounts for the additional compensation required by Malaysian labor laws for holiday work.

3. Importance of Holiday Pay Calculation

Details: Proper holiday pay calculation ensures compliance with Malaysian labor laws and fair compensation for employees working during public holidays.

4. Using the Calculator

Tips: Enter the employee's normal daily rate in MYR and the appropriate multiplier (typically 2 for normal holiday work or 3 for certain circumstances). All values must be valid (daily rate > 0, multiplier ≥ 1).

5. Frequently Asked Questions (FAQ)

Q1: What is the standard multiplier in Malaysia?
A: Typically 2x the daily rate for working on a public holiday, but some employers may pay 3x for certain holidays or overtime hours.

Q2: Are all employees entitled to holiday pay?
A: Most employees covered under the Employment Act 1955 are entitled, but some exceptions may apply for certain contract workers.

Q3: How is the daily rate calculated?
A: For monthly-paid employees: (Monthly salary × 12) / (52 weeks × normal working days per week).

Q4: What if the employee works overtime on a holiday?
A: Overtime on holidays typically commands even higher rates (e.g., 3x normal rate).

Q5: Are there different rules for different industries?
A: Some industries like hospitality may have specific collective agreements that modify holiday pay rules.