Wednesday

Amendment of Employment Act 1-April 2014 (Overtime)


Amendment of Employment Act 1 April 2014 (Overtime)

With effect from 1 April 2014, employees with salary $2,500 and below (formerly $2,000) are entitled to overtime pay if they perform overtime work. However, the calculation of overtime pay will be capped at $2,250 instead.

The calculation of overtime pay will remain unchanged as per the Employment Act, depends on the quantum (1.5 times, 2 times and etc) for the hourly rate.


Formula for calculation of hourly rate as follows: (Basic Salary x 12) / (working hour x 52)

Based on the capped of $2,250, the following are some scenarios to guide you to calculate the hourly rate for employee for the purpose of overtime calculation, with assumption if they work 44 hours per week.
If Basic salary = $2,100, hourly rate for overtime is ($2100 x 12) / (44 x 52)
If Basic Salary = $2,400, hourly rate for overtime is ($2250 x 12) / (44 x 52)