1.5 for working on public holidays
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asked on Jan 13, 2005 at 20:48
by   Mira
Appreciate your advice on what it really meant by being paid 1.5 times on public holiday.

(1) For example, a staff is paid a daily wage of RM100/day.  He works 20 days and has 10 days off every time throughout the year. (a) In the event that a holiday falls on a Sunday, and that Sunday falls on his work day, what would his salary be for that day?  (b) How do you compute that? (c) Or should it calculated as normal dayrate because after all it is his work day and he gets off day too.

(2) Say a monthly waged staff is paid RM1,500/month, and works on a rotation of say 14 days work and 7 days off every time in the year.  A public holiday falls on during his work day.  Do we pay him the 1.5times rate?   What does it mean?  How is it computed, actually?

(3)  A monthly waged staff is paid say RM3,000/month, and works on a rotation of say 14 days work and 7 days off throughout the year.  If we do not give him annual leave say of 14 days per year, is it against the employment law or industrial relations law?  (is it called industrial relations law??)
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answered on Jan 15, 2005 at 23:22
by   Subash
1. a. Judging from his rate of pay, I take it that the employee is not an covered by the employment act. If he is paid RM 100 a day, and if a public holiday falls on his workday, and he is required to work on that particular day, then he will have to be paid RM 150 for that day, unless his contract states that he is only entitled the mandatory public holidays (4 days). Because he is not an employee covered by the employment act, his public holiday rate & entitlement can be fixed accordingly in his contract.

b. Normal rate of pay * 1.5 (public holiday rate of pay)

c. If he is required to work on the public holiday, he has to be paid his public holiday rate.

2. Anyone earning RM 1500 and below is considered to be an employee and therefore covered by the employment act. According to the employment act, an employee is to be paid 2 times his rate for working on a public holiday. 1.5 is merely the denominator for overtime rate calculation.

Firstly, how many days a month does he work? His Ordinary Rate of Pay (ORP) should be 1500 (monthly wage) / (amount of days worked in a month). His public holiday rate of pay would be ORP * 2. Let us say for example that the employee works 24 days in a month. His ORP would then be 1500 / 24 = 62.5. His public holiday rate would be 62.5 * 2 = RM 125.

3. He is not covered by the employment act. He is bound to the terms provided to him in his contract. It is not against the employment law provided that he is not an employee under the governance of the employment act.