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Foreign worker minimum wage and OT calculation
Last updated: Tai Industries
The minimum basic wage in our payroll standard for foreign workers (pekerja asing) is RM 1,700 per month. From it come a daily rate of RM 65.38 and an hourly rate of RM 8.17. Overtime is paid at 1.5× the hourly rate on a normal day, 2.0× on a rest day and 3.0× on a public holiday.
What is the minimum wage for a foreign worker?
The basic minimum wage is RM 1,700 per month. The standard working week is 45 hours, made up of 7.5 hours a day for 6 days, with 1 rest day per week.
How are the daily and hourly rates calculated?
Both are derived from the monthly wage.
| Rate | Calculation | Result |
|---|---|---|
| Daily rate | Monthly wage ÷ 26 | RM 65.38 |
| Hourly rate | Daily rate ÷ 8 | RM 8.17 |
What are the OT rates?
Overtime is a multiple of the hourly rate. The multiple depends on the day.
| Overtime category | Multiplier | Rate per hour |
|---|---|---|
| Normal-day OT | 1.5× hourly rate | RM 12.26 |
| Rest-day work | 2.0× hourly rate | RM 16.35 |
| Public holiday work | 3.0× hourly rate | RM 24.52 |
The rates are calculated from the unrounded hourly rate and rounded only at the end.
How do I calculate OT for a month?
Multiply the hours in each category by its rate, then add the results. For example, a worker with 10 hours of normal-day OT and 8 hours of public holiday work in one month earns:
| Calculation | Amount | |
|---|---|---|
| Normal-day OT | 10 × RM 12.26 | RM 122.60 |
| Public holiday work | 8 × RM 24.52 | RM 196.15 |
What does the worker cost the employer each month?
On top of the basic wage, the employer pays EPF at 2% (RM 34.00) and PERKESO of RM 39.40. That makes RM 1,773.40 per worker per month before overtime. With the OT in the example above, the month comes to RM 2,092.15.
Our foreign worker minimum wage and OT rates page has an estimator that does this arithmetic for any number of hours and workers.
Where does payroll fit with permits?
Paying correctly is part of employing foreign workers properly, alongside keeping the levy (levi) and the PLKS (Pas Lawatan Kerja Sementara) work permit up to date. Tai Industries gives payroll compliance guidance as part of our existing worker services. For the cost of bringing in new workers, see the foreign worker cost breakdown, or contact us with your question.