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OT Calculation using Gross Pay

Harry A.  
Guest
Mon, 14 Dec 2009 03:44:44 PM  (Last updated: Tue, 15 Dec 2009 06:02:40 PM)

May I confirm the calculation method for OT as follows;

GROSS PAY = basic salary + fixed allowance + traveling claim + OT payment from last month

NET PAY = Gross pay - contribution - PCB - no pay leave

So, when calculate OT rate; which one to use? Gross Pay or net pay amount? is OT payment from last month and claim included in the amount? Is the division formula = 26 x 8 = 208 correct?

KL Siew
Administrator
Mon, 14 Dec 2009 05:06:47 PM

Should use basic salary + fixed allowance.

Harry A.
Guest
Tue, 15 Dec 2009 12:09:05 PM

Mr. Siew, does that mean we can only compute OT rate on the next payroll. By not paying OT and withholding to next month, are we breaking the law?

KL Siew
Administrator
Tue, 15 Dec 2009 06:02:39 PM

You know, when a company has many workers doing overtime, it really takes a lot of time going through, checking through the punch cards. As such, payment of salary cannot wait for the overtime calculation to be ready and because of that overtime payment may be delayed. I really don't want to say the company has broken the law. Ask the Labour Department for their opinion.

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