Calculating the real cost of unpaid overtime in Malaysia
by Mariam Hassan·May 21, 2026
Most salaried employees in Malaysia assume unpaid overtime is just part of the deal. It doesn't have to be, and even if it is, it's worth knowing what it costs you.
Example: RM6,000/month salary. Assuming 22 working days × 8 hours = 176 billable hours. That's RM34.09/hour.
If you consistently work 2 extra hours per day (10-hour days), that's 44 unpaid hours per month = RM1,500 in uncompensated labour every month = RM18,000 per year.
Is the employer getting RM18,000 of value from you that they're not paying for? Almost certainly yes.
Under the Employment Act (for employees earning RM4,000 and below), overtime is legally required to be paid. For those above, it depends on your contract. Worth understanding what yours actually says.