Pay for work on a rest day or public holiday is calculated based on a number of factors including who requested the work to be completed, the number of hours worked and whether the employee is covered by part the Employment Act. The rules and calculations applied within they system are outlined below.
Rest Day
Employees are entitled to one rest day each week. If an employee works on a rest day they are entitled to receive pay for this work. The system will only calculate and pay an employee for work completed on a rest day if the ‘Rest day worked’ work type or pay category are selected in the timesheet and/or pay run. The system will not automatically identify the rest day for employees, and therefore cannot automatically pay them for this work.
If the employee's pay category is an hourly unit and requests to work on the rest day, the relevant 'Permanently ordinary hours - Rest day worked' work type/pay category should be selected. The pay calculation will be as follows when this work type is selected:
|
Hours Worked |
Pay Received |
|
= or < ½ normal work hours |
1 days pay |
|
> ½ but < normal work hours |
2 days pay |
|
> normal work hours |
2 x hourly rate for hours exceeding normal work hours |
Hourly rate is the employee’s hourly rate set in employee’s pay run default page. And daily rate is based on employee’s standard hours.
If the work was submitted via a timesheet, the earnings line will display with a calculated value in the pay run (if the employee is entitled to pay). If the earnings line is manually added in the pay run, the pay category will need to be selected and the number of hours worked entered. The 'Rate (per hour)' will show RM0 until the employee's pay details have been saved. Once 'Save' has been selected the pay will calculate and display the calculated hourly rate for the rest day pay.
If the employee's pay category is monthly units and requests to work on the rest day, the relevant 'Salary - Rest day worked' work type/pay category should be selected. The pay calculation will be as follows when this work type is selected:
|
Hours Worked |
Pay Received |
|
= or < ½ normal work hours |
½ days pay |
|
> ½ but < normal work hours |
1 days pay |
|
> normal work hours |
2 x hourly rate for hours exceeding normal work hours |
Daily rate and hourly rate is dependent on the business’ formula to calculate ordinary rate
For business using 26 days to calculate ordinary rate
Example: Employee works 8 hours per day, monthly salary is RM 5000.
Daily rate: RM 5000 / 26 day
Hourly rate: Daily rate / 8 hours
For business using actual working days to calculate ordinary rate
Example: Employee works 8 hours per day and Standard days per week for the business is 5 days. System will count Monday to Friday as work days. The number of work days will change for each pay period. For period 01 /07/2023 to 31/07/2023, there are 21 work day.
Daily rate: RM 5000 / 21 day
Hourly rate: Daily rate / 8 hours
For business using average working days to calculate ordinary rate
Example: Employee works 8 hours per day and Stand days per week for the business is 5 days. System will average number of work days in a month, i.e 5 days per week x 52 weeks / 12 months = 21.66667 days.
Daily rate: RM 5000 / 21.66667 day
Hourly rate: Daily rate / 8 hours
For employee with advanced work week, the calculation will be based on employee’s working pattern regardless of the business formula to calculate ordinary rate.
Employees are entitled to pay for hours worked on a public holiday if they are covered by the Employment Act. For a normal public holiday where the employee is not required to work, their regular salary already includes the gross pay for the public holiday. If the employee works on the public holiday they are entitled to an additional days pay at the base rate. Employees are paid for their normal hours for the day, irrelevant of the number of hours worked.
The system will calculate and pay an employee for work completed on a public holiday if the relevant ‘Public holiday worked’ pay category are selected in the pay run.
If the earnings line is manually added in the pay run, the pay category will need to be selected and the number days (units) entered. The 'Rate (per day)' will show $0 until the employee's pay details have been saved. Once 'Save' has been selected the pay will calculate and display the calculated daily rate for the public holiday pay.