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Overtime Pay Applicable To Employees Who Earn Up To RM4,000

by Khirthnadhevi Kumar
January 3, 2023
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As previously, stated the employment act and flexible working hours amended by V. Sivakumar, Human Resources Minister, successfully took force on the 1st of January 2023.  

There is an additional key amendment to the employee act whereby, employees who earn up to RM4,000 are also entitled to overtime pay. Before the amendment, only employees earning up to RM2,000 a month were entitled to overtime payments. 

According to The Star, employees can also submit a written application for a flexible work arrangement, which can cover changes in working hours, working days, and also the place of work. When such an application is made, the employer must respond to the employee in writing within 60 days, stating whether the application is accepted or rejected, and providing reasons for the rejection.

The Employment (Amendment) Act was passed in Parliament in March 2022 and was to come into effect on the 1st of September 2022, but was pushed to the 1st of January 2023 to ensure that employer implementation goes smoothly.

With that, employees will be entitled to overtime payments if they work beyond the 45 hours provided.

The updated key amendments are: 

  • Reduced weekly working hours from 48 to 45 hours
  • Extension of maternity leave allocations from 60 days to 98 days
  • Seven-day paternity leave for married male employees 
  • Overtime pay for employees who work beyond 45 hours
  • Overtime pay is applicable for employees who earn up to RM4000 

Happy working, and good luck with the first day of work everyone!

Source: (1)

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Filed Under 1st of January 2023additional key amendmentemployees who earn up to RM4k are also entitled to overtime payHuman Resources MinisterHuman Resources Minister V. Sivakumar
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