Foreign worker minimum wage & OT rates in Malaysia
The payroll standard we use for foreign workers (pekerja asing): a minimum basic wage of RM 1,700 per month, the daily and hourly rates derived from it, overtime multipliers, and EPFEmployees Provident Fund (KWSP). and PERKESOSocial Security Organisation (SOCSO). contributions.
Last updated: date to be confirmed
Minimum wage and statutory contributions
The standard working week is 45 hours (7.5 hours × 6 days), with 1 rest day per week.
| Payroll / deduction item | Statutory basis |
|---|---|
| Basic minimum wage | RM 1,700 / month |
| Standard hours | 45 hrs / week (7.5 hrs × 6 days) |
| Rest day policy | 1 rest day per week |
| EPF contribution | Employer 2% / Employee 2% |
| PERKESO contribution | Employer RM 39.40 / Employee RM 8.75 (per contribution table) |
How overtime (OT) is calculated
Overtime starts from two base figures. The daily rate is the monthly wage divided by 26: RM 65.38. The hourly rate is the daily rate divided by 8: RM 8.17.
OT is then a multiple of the hourly rate: 1.5× on a normal working day (RM 12.26 per hour), 2.0× for work on a rest day (RM 16.35 per hour) and 3.0× for work on a public holiday (RM 24.52 per hour).
| Overtime category | Multiplier | Rate |
|---|---|---|
| Ordinary rate (per day) | 1-day basis | RM 65.38 / day |
| Hourly rate | 1-hour basis | RM 8.17 / hour |
| Normal-day OT | 1.5× hourly rate | RM 12.26 / hour |
| Rest-day work (rest-day OT) | 2.0× hourly rate | RM 16.35 / hour |
| Public holiday work | 3.0× hourly rate | RM 24.52 / hour |
Monthly employer cost estimator
For one worker on the minimum wage, the employer's monthly cost is the basic wage plus the employer's EPF contribution (2%, RM 34.00) and PERKESO contribution (RM 39.40): RM 1,773.40 before overtime. Add OT hours to estimate a full month.
Estimate one month
Estimate- Basic wage
- RM 1,700.00
- Employer EPF (2%)
- RM 34.00
- Employer PERKESO
- RM 39.40
- Overtime pay
- RM 0.00
- Estimated cost per worker per worker, per month
- Estimated monthly cost, all workers
Estimate only, for planning. It uses the minimum basic wage and the rates above, and does not replace payroll advice for a specific worker.
A worked example
Take one worker on the minimum wage who works 10 hours of overtime on normal working days and 8 hours on a public holiday in the same month.
The normal-day overtime comes to 10 × RM 12.26 = RM 122.60. The public holiday work comes to 8 × RM 24.52 = RM 196.15. Added to the base employer cost of RM 1,773.40, the estimated cost for that month is RM 2,092.15.
The same steps work for any month: multiply the hours in each category by its hourly OT rate, then add the result to the basic wage and the employer contributions. The estimator above does this arithmetic for you.
EPF and PERKESO for foreign workers
EPF (KWSP) is contributed at 2% by the employer and 2% by the employee. PERKESO (SOCSO) is RM 39.40 from the employer and RM 8.75 from the employee, according to the contribution table.
Employee contributions are deducted from the worker's wage. Employer contributions are paid on top of it.
Applying this to your payroll
We give payroll and statutory compliance guidance as part of our existing worker services, alongside PLKSTemporary Employment Visit Pass (Pas Lawatan Kerja Sementara): the work permit. (Pas Lawatan Kerja Sementara) renewal.
Still planning to hire? Start with the foreign worker cost breakdown, which covers the levyAnnual foreign worker levy paid by the employer. (levi), the work permit and the post-arrival costs for each new worker.
Guides
Related guides
- Draft
Foreign worker minimum wage and OT calculation
Foreign worker minimum wage and OT calculation: RM 1,700 a month, how daily and hourly rates are derived, and the 1.5×, 2.0× and 3.0× OT rates.
Updated - Draft
EPF and PERKESO for foreign workers: an employer's guide
EPF and PERKESO for foreign workers in Malaysia: the employer and employee contribution rates in our payroll standard, and what they add to monthly cost.
Updated
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