1. What is the Salary Calculator?

The Salary Calculator Malaysia with OT Rate helps employees and employers calculate net salary including overtime pay according to Malaysian labor laws. It accounts for standard deductions like tax, EPF, and SOCSO.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• Overtime Hours — Number of overtime hours worked
• Rate — Normal hourly rate in MYR
• Gross Salary — Base salary before deductions
• Tax — Income tax amount
• EPF — Employees Provident Fund contribution
• SOCSO — Social Security Organization contribution

Explanation: Overtime is calculated at 1.5 times the normal rate, and standard Malaysian deductions are subtracted from the total earnings.

3. Importance of Salary Calculation

Details: Accurate salary calculation ensures compliance with Malaysian labor laws and helps employees understand their take-home pay after all deductions.

4. Using the Calculator

Tips: Enter all values in MYR. Overtime hours can be in 0.5 hour increments. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard overtime rate in Malaysia?
A: The standard overtime rate is 1.5 times the normal hourly rate for normal working days.

Q2: How is EPF calculated?
A: EPF is typically 11% of employee's salary, but this calculator allows you to input the exact amount.

Q3: Are there different overtime rates for weekends/holidays?
A: Yes, but this calculator uses the standard 1.5x rate. Weekend rates are typically 2x and public holiday rates are 3x.

Q4: What is included in SOCSO?
A: SOCSO covers work injury insurance and invalidity pension schemes for employees in Malaysia.

Q5: Is this calculator suitable for all employment types?
A: This is designed for standard employment in Malaysia. Contract workers or those with different compensation structures may need different calculations.