We have 31 guests onlineShift Allowance
Member
Dear all,
I'm a freshie in HR field which currently working in F& B company.
I am doubt in Shift allowance.
Due to my company working hours is from 10am-2pm and 6pm-10pm. There's 4 hours break in between 2pm-6pm.
Currently, we would like to extend the business hours to 11pm. So, the employees are required to work 9 hours per day. In this case, we should pay 1 hour OT to the employees. But,
If my company wish to offer shift allowance (lum sum amount), should we offer OT pay as well?
What is shift allowance? Is shift allowance need to contribute socso, epf and pcb?
hope to hear you guys soon.
Thanks.
Regards,
Veron
Administrator
You better pay some attention to (c) of Section 60A of the Employment Act as quoted below. From 10 to 10, there is already two hours in excess of the spread over period of 10 hours. It means in your case even though the actual working hours are only 8, there is still overtime for 2 hours. If you push the working hours to 11, there will be 3 hours overtime each day. I strongly advise you to discuss the issue with the local Labour Department especially about the meaning of "spread over period of 10 hours". If not, you may end up paying huge arrears of overtime one day.
60A. Hours of work.
(1) Except as hereinafter provided, an employee shall not be required under his contract of service to work:
(a) more than five consecutive hours without a period of leisure of not less than thirty minutes duration;
(b) more than eight hours in one day;
(c ) in excess of a spread over period of ten hours in one day;
(d) more than forty-eight hours in one week:
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