Do Part-Time Employees Qualify for Overtime Pay and Bonuses?

Some employers might still believe part-time employees are not entitled to overtime pay or bonuses. In reality, under the Employment (Part-Time Employees) Regulations 2010, part-timers enjoy specific protections and entitlements, including paid overtime, rest days, and public holidays.

This article will explain to you when and how employers must pay overtime to part-time staff, and how bonuses or incentives can be structured fairly and legally.

Can Part Timer Receive OT and Bonus?

Yes. Part-time employees in Malaysia are legally entitled to overtime pay under Regulation 5 of the 2010 Regulations, if they work beyond their normal hours of work.

Definition of Part-Time Work

A part-time employee is defined as someone who works between 30% and 70% of a full-time employee’s normal 48-hour week, meaning up to 31.5 hours per week.

Overtime Pay Rules (Official Legal Reference)

If a part-time employee works beyond their agreed-upon normal hours, employers must calculate pay as follows:

Condition	Overtime Rate
Work beyond agreed hours but not exceeding full-time hours	1x hourly rate
Work exceeding full-time hours (48 hours per week)	1.5x hourly rate

Formula:

Overtime Pay = Overtime Hours × Hourly Rate × Overtime Rate (1.0 or 1.5)

Example:

If a part-timer earning RM10/hour works 5 extra hours beyond their agreed schedule (still within 48 hours/week):

RM10 × 5 × 1.0 = RM50 overtime pay.

If they exceed 48 hours in a week, the rate becomes 1.5×.

Failure to pay overtime correctly is an offence under the Employment Act 1955, punishable by a fine of up to RM10,000.

Bonus and Allowances for Part-Time Employees

While overtime is mandatory, bonuses are not. They depend on company policy or a written contract.

Legal Context

There’s no statutory requirement under Malaysian labour law to pay bonuses. However, if a company promises or regularly pays bonuses, it becomes part of the employment terms and must be honoured.

Possible Types of Bonuses and Allowances

Employers may choose to offer part-time employees:

Performance bonuses which based on individual or sales performance.
Attendance or punctuality allowances.
Festive or sales incentives during seasonal or promotional campaigns.
Completion bonuses for contracts ending successfully.

Bonus Calculation Example

Bonus = (Basic Monthly Salary × Bonus Percentage)

Example: RM1,200 × 10% = RM120

Important Note for Employers

All bonuses or allowances should be clearly stated in the employment contract, including eligibility, payment frequency, and calculation method.

Ambiguous terms can lead to employee disputes or claims at the Labour Department.

What Employers Need to Do

To stay compliant and fair, Malaysian employers should take the following steps:

Define Working Hours in the Contract

State exact hours per day/week and clarify the normal, rest, and overtime limits.

Track Attendance Accurately

Maintain attendance logs or digital clock-ins to calculate overtime and pay accurately.

Record Overtime Approval

Employers should approve overtime in writing (e.g., email, form, system record) before work begins.

Communicate Bonus and Allowance Policies

Include details in company policy or offer letter. Part-timers should know if bonuses or incentives apply.

Stay Compliant with the Employment Act 1955

Under Regulation 5(2) of the 2010 Regulations, failing to pay overtime or rest day wages is a chargeable offence.

Employers should display work schedules and public holiday notices at the workplace to comply with Regulation 6(3) of the 2010 law.

FAQs

Are part-time employees excluded from overtime pay under Malaysian law?

No. They are entitled to overtime pay if they work beyond their normal hours, as stated in the Employment (Part-Time Employees) Regulations 2010.

How do employers calculate overtime for part-time workers?

Use the formula:

Overtime Pay = Overtime Hours × Hourly Rate × Overtime Rate (1.0 or 1.5)

Are employers required to pay bonuses to part-time staff?

No. Bonuses are discretionary unless promised in a contract or policy.

What if a part-time employee works full-time hours, do overtime rules still apply?

Yes. Once they exceed the part-time threshold, all hours beyond 48 per week must be paid at 1.5x their hourly rate.

Can part-time employees receive the same incentives as full-timers?

Yes, at the employer’s discretion. Many companies offer proportional benefits to retain good part-time staff.

Do freelancers qualify for overtime or bonuses?

No. Freelancers are independent contractors, not employees. They are paid per project, not per hour under labour law.

Is there a limit to how many overtime hours a part-time employee can work?

There’s no fixed national cap, but employers must ensure total hours do not exceed 48 per week and comply with the agreed contract terms.

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