Cara Kira Gaji Per Jam in Malaysia: Formula, Examples & Payroll Guide for Employers

Many payroll issues start with a simple mistake: calculating hourly wages incorrectly. Whether it’s for part-time staff or overtime pay, understanding cara kira gaji per jam helps employers prevent disputes and stay aligned with Malaysia’s labour practices.

What Is Gaji Per Jam?

Gaji per jam refers to wages paid based on the number of hours an employee works. It is different from other wage structures:

Hourly wage: Paid based on hours worked
Daily wage: Paid per working day
Monthly salary: Fixed pay regardless of daily hours (subject to attendance)

Hourly wages are commonly used in Malaysia in industries such as:

Retail and F&B
Manufacturing and production
Logistics and warehousing
Security and cleaning services
Part-time and contract-based roles

Basic Formula: Cara Kira Gaji Per Jam

For monthly-paid employees, HR usually converts the salary into an hourly rate using this standard approach.

Formula

Hourly Wage = Monthly Salary ÷ Total Working Hours per Month

How HR Determines Total Working Hours

Standard working hours per day: 8 hours
Average working days per month: 22 days (can vary by company)
Total monthly hours: 8 × 22 = 176 hours

Example

Monthly salary: RM2,400
Total working hours: 176 hours

Hourly wage = RM2,400 ÷ 176 = RM13.64 per hour

This hourly rate is often used for:

Overtime calculations
Unpaid leave deductions
Salary pro-rating

Cara Kira Gaji Per Jam from Daily or Weekly Pay

Some employees are paid by the day or by the week instead of a fixed monthly salary.

To calculate their hourly wage correctly, employers only need to divide the total pay by the number of hours worked within that period.

From Daily Wage

If an employee is paid daily:

Formula:

Hourly wage = Daily wage ÷ Daily working hours

Example:

Daily wage: RM80
Working hours per day: 8

Hourly wage = RM80 ÷ 8 = RM10 per hour

From Weekly Wage

If an employee is paid weekly:

Formula:

Hourly wage = Weekly wage ÷ Total weekly working hours

Example:

Weekly pay: RM500
Working hours: 40 hours

Hourly wage = RM500 ÷ 40 = RM12.50 per hour

How Overtime Affects Hourly Wage Calculation

Overtime (OT) in Malaysia is calculated based on the hourly rate of pay, also known as the Hourly Rate of Pay (HRP). What counts as overtime?

Work beyond normal daily working hours
Work on rest days
Work on public holidays

Basic OT Concept

OT Pay = Hourly Rate × OT Multiplier

General guideline under the Employment Act:

Normal working day: 1.5×
Rest day: 2.0×
Public holiday: 3.0×

Actual OT entitlement depends on employee category, salary threshold, and employment contract. Employers must always follow the Employment Act 1955.

Practical Payroll Examples

To give you more context and cases, here are some examples:

Example 1: Part-Time Employee

Works 20 hours per week
Weekly pay: RM400

Hourly rate = RM400 ÷ 20 = RM20 per hour

Example 2: Shift Worker

Shift workers typically have varying hours each week and are paid strictly based on their clock-in and clock-out records.

HR department calculates pay using the following formula: Actual Hours Worked × Hourly Rate

This emphasizes the importance of accurate attendance tracking. Since hours worked can differ weekly, payroll is based on the actual clock-in records.

To ensure accurate payment, HR must:

Track hours meticulously
Multiply the total hours worked by the agreed hourly rate

Example 3: Monthly Employee Converted to Hourly

Monthly salary: RM2,700
ORP (daily rate): RM2,700 ÷ 26 = RM103.85
HRP (hourly rate): RM103.85 ÷ 8 = RM12.98 per hour

HR & Employer Payroll Considerations

Calculating hourly wages directly affects payroll accuracy, employee trust, and legal compliance. When hourly rates are miscalculated, it can lead to disputes, underpayment, or audit issues.

HR teams need to check on these elements:

Time and Attendance Tracking

Ensure that actual working hours are properly recorded, including clock-in and clock-out times, approved overtime hours, and unpaid breaks.

Without reliable time records, hourly wage calculations become inaccurate.

Clear Definition of Working Hours

Employers should clearly define:

Normal working hours per day
Total working hours per week
Whether meal breaks are paid or unpaid

These definitions should be consistent with company policy and employment contracts.

Overtime Approval and Documentation

Overtime should not be calculated casually. Provide a clear approval process so that only authorised overtime hours are included in payroll. This helps avoid unexpected payroll costs and disputes later.

Statutory Deductions

Even for hourly or part-time workers, employers must apply statutory deductions correctly, including:

Hourly pay does not remove statutory obligations.

Need to Calculate EPF, SOCSO & EIS Contributions?

Use our all-in-one calculator to compute accurate employer and employee deductions quickly and easily. Calculate now.

Consistency Across Payroll Periods

When converting monthly salary to hourly rates (for overtime or special calculations), always use the same working-hour assumptions. Changing the divisor from month to month can create inconsistencies and confusion.

Payroll Audit Readiness

Accurate hourly wage calculations help employers stay prepared for audits. Having clear formulas, documented assumptions, and proper records makes payroll verification easier during internal reviews or inspections.

Common Mistakes in Cara Kira Gaji Per Jam

Despite its simplicity, hourly wage calculation is often done incorrectly. Below are common mistakes employers should avoid.

Using the Wrong Total Working Hours

Some employers calculate the monthly salary by dividing it by calendar days instead of actual working days, which can inflate or reduce the hourly rate and lead to inaccurate pay.

Mixing Salary Structures

A common mistake is applying daily wage formulas to monthly-paid employees, or vice versa. Each pay structure requires its own calculation method.

Ignoring Unpaid Breaks

Unpaid lunch or rest breaks should not be counted as working hours. Including them can lower the actual hourly wage and cause underpayment issues.

Applying the Wrong Overtime Multiplier

Overtime rates differ depending on whether the work is done on a normal workday, rest day, or public holiday. Using a flat rate for all overtime situations may result in non-compliance.

Failing to Update Working Hours

When working schedules change (for example, shift adjustments or reduced working days), HR teams sometimes forget to update the hourly wage calculation. This leads to outdated payroll figures.

Poor Record Management

Missing attendance records, incomplete OT approvals, or unclear timesheets make it difficult to justify payroll calculations if disputes arise.

Assuming Part-Time Workers are Exempt

Part-time or hourly workers are still entitled to correct pay calculations and statutory protections. Assuming otherwise can expose employers to legal risk.

FAQs

What does “cara kira gaji per jam” mean?

It means calculating wages based on the number of hours worked instead of a fixed monthly salary.

How do employers calculate hourly wages in Malaysia?

Most employers divide monthly, weekly, or daily wages by total working hours using a standard formula.

Is overtime included in gaji per jam?

No. Gaji per jam is the base rate. Overtime is calculated separately using multipliers.

How do you calculate hourly pay for part-time workers?

Divide the total pay by the total hours worked during the pay period.

What is the standard working hour used in Malaysia?

Typically, 8 hours per day and around 176 hours per month, depending on company policy.

Ready to Hire Quality Staff Who Fit Your Team?

AJobThing helps Malaysian employers attract the best student talent quickly and efficiently.