How to Determine Working Hours in Malaysia

Every business relies on its workforce to operate efficiently, but how do you structure working hours while staying compliant with Malaysia’s labor laws?

Both fixed-hour and shift-based businesses must understand legal working hour requirements.

This helps avoid penalties and maintain productivity.

This time, we will share the latest working hour regulations, including standard, maximum, and overtime limits.

What Are the Standard Working Hours in Malaysia?

The Employment Act of 1955 sets the framework for working hours in Malaysia.

Previously, employees could work up to 48 hours per week.

But as of 1 January 2023, the maximum normal working hours were reduced to 45 hours per week.

This means employees typically work 9 hours per day (excluding breaks) over a 5-day workweek or 7.5 hours per day over a 6-day workweek.

For a standard office job, the common working hours are 9:00 AM to 6:00 PM with a 1-hour lunch break.

However, industries such as retail, hospitality, and manufacturing may have different working schedules.

Does Lunch Break Count as Working Hours?

Lunch breaks do not count as part of the official working hours.

According to the law, employees must have a break of at least 30 minutes after 5 continuous hours of work.

However, most companies provide a 1-hour lunch break, which means that an 8-hour shift typically runs for 9 hours in total, including the break.

What Are the Maximum Working Hours in Malaysia?

While the standard weekly working hours are 45 hours, employers may sometimes need employees to work extra hours. However, there are legal limits to overtime work.

Legal Limits on Overtime

Employees cannot work more than 12 hours per day, including overtime.
Weekly working hours, including overtime, must not exceed 72 hours.
Employees cannot work more than 104 overtime hours per month.

Overtime Pay Rates

Employers must compensate employees for overtime work at the following rates:

1.5x normal hourly wage for overtime work on regular working days.
2x normal hourly wage for overtime work on rest days.
3x normal hourly wage for overtime work on public holidays.

What Are the Minimum Working Hours in Malaysia?

There is no legal minimum working hour requirement in Malaysia. Instead, working hours depend on the employment contract.

Part-time employees and freelancers may work fewer hours, but their salaries and benefits are adjusted accordingly.

For part-time employees, work schedules must be stated clearly in the contract.

Salaries and benefits, including EPF and SOCSO, are calculated based on working hours.

They are entitled to pro-rated benefits similar to full-time employees.

Working Hours for Non-Shift and Shift Employees

Different industries require different work schedules.

Some employees work in fixed-hour jobs (non-shift), while others work in shift-based schedules to support 24-hour operations.

Category	Non-Shift Employees	Shift Employees
Work Schedule	Fixed hours (e.g., 9:00 AM – 6:00 PM)	Rotational shifts (e.g., Morning, Evening, Night)
Workdays	Typically 5 or 6 days per week	Can include weekends, depending on the industry
Breaks	At least 30 minutes after 5 continuous hours	Breaks scheduled based on shift length
Overtime Rules	Overtime applies beyond 45 hours per week	Overtime applies if work exceeds 45 hours per week over 3 weeks
Industry Examples	Corporate offices, retail, education, customer service	Manufacturing, healthcare, security, essential services
Legal Considerations	Must comply with Employment Act 1955 regulations	Must follow specific sector regulations for shift work

How to Determine Scenario-Based Working Hour Arrangements

Work schedules vary across businesses.

Below are common working hour arrangements used in different industries:

Scenario	Description	Common Industries	Typical Schedule
1. Non-Shift Employees (8 Hours/Day, 5 Days/Week)	Standard office work schedule	Corporate, administrative jobs	9:00 AM – 6:00 PM (1-hour lunch break)
2. Non-Shift Employees (8 Hours/Day, 6 Days/Week)	Longer weekly schedule, often used in service industries	Retail, F&B, small businesses	9:00 AM – 5:00 PM (Monday – Saturday)
3. Non-Shift Employees (<8 Hours/Day, 6 Days/Week)	Part-time work with reduced daily hours	Freelance, part-time roles, retail	9:00 AM – 3:00 PM (Monday – Saturday)
4. Non-Shift Employees (9 Hours/Day, 5 Days/Week)	Flexible work arrangements balancing fewer workdays	Multinational companies, IT, finance	8:00 AM – 6:00 PM (1-hour lunch)
5. Shift Employees (Rotating Shifts)	Work divided into multiple shifts to cover operations	Healthcare, security, factories	Morning (7:00 AM – 3:00 PM), Evening (3:00 PM – 11:00 PM), Night (11:00 PM – 7:00 AM)
6. Shift Employees (Extended Work Hours)	Employees may work longer shifts but must average ≤45 hours/week over 3 weeks	Manufacturing, essential services	12-hour shifts, rotating over a 3-week cycle

FAQ

What are the legal consequences of violating working hour laws in Malaysia?

Employers who violate working hour regulations can face fines or legal penalties under the Employment Act 1955. Failure to provide overtime compensation or excessive working hours without breaks can lead to complaints to Labour Courts.

Are employers required to provide flexible working hours?

Flexible working hours are not mandatory, but employers can offer flexible-hour arrangements if agreed upon in the employment contract. Some businesses use compressed workweeks where employees work longer hours on some days to get extra rest days.

How does overtime calculation work?

Overtime is calculated based on the hourly wage rate, which is determined by dividing the monthly salary by 26 days and 8 working hours per day.

Can employees request a change in their working hours?

Employees can submit a formal request to change their work schedule, but it is up to the employer's discretion based on business needs.

What industries have special exemptions from standard working hours?

Industries such as oil & gas, healthcare, security, and essential services may have different working hour regulations due to 24-hour operations. Employers must follow specific sector regulations and manage work schedules accordingly.

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