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Calculation of Overtime Payment

Overtime payment has to be paid if the employee is required to work beyond his contractual hours of work. Payment for overtime work must be made within 14 days after the last day of the salary period.

The rate of overtime payment shall not be less than one and a half times the employee's hourly basic rate of pay.

Basic rate of pay is the total amount of money (including wage adjustments and increments) which an employee is entitled to under his contract of service but DOES NOT include:

  1. additional payments by way of overtime payments;
  2. additional payments by way of bonus payments or annual wage supplements
  3. any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment
  4. productivity incentive payments; and
  5. any allowance however described.

From 1 April 2014, non-workmen employees earning a basic monthly salary not exceeding $2,500 will be covered under Part IV of the Employment Act. For each hour of overtime work, they are minimally entitled to receive 1.5 times their hourly basic rate of pay. However, if their basic monthly salary is between $2,250 and $2,500, the overtime rate payable will be capped at the basic monthly salary of $2,250.

Last updated on 22 Aug 2012 12:00:00