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Salary to Hourly Rate Calculator

Enter your monthly salary to get your daily and hourly rate. The default follows the Employment Act 1955 method used for overtime and leave pay.

RM

Your basic monthly wage before deductions.

Method

The Employment Act method is the one used for overtime pay and other statutory pay. The yearly method suits comparing jobs or freelance rates.

h

Used with the Employment Act method. A normal day is often 8 hours.

Advanced
h

Used with the yearly method. The legal maximum normal week is 45 hours for covered employees; check your contract.

Source: Akta Kerja 1955 (Akta 265), s.60I ↗

This result is an estimate only. Check with your bank or the relevant authority before making decisions.

How it is calculated

Employment Act method:

  • Daily rate = monthly salary ÷ 26
  • Hourly rate = daily rate ÷ normal hours a day

Yearly method:

  • Hourly rate = monthly salary × 12 ÷ (52 × normal hours a week)
  • Daily rate = hourly rate × normal hours a day

For overtime pay on top of this rate, use the overtime calculator. For your take-home pay, use the net salary calculator.

Worked example

A monthly salary of RM3,000 and 8 normal hours a day:

  • Daily rate: 3,000 ÷ 26 = RM115.38
  • Hourly rate: 115.38 ÷ 8 = RM14.42

With the yearly method and 45 hours a week: 3,000 × 12 ÷ (52 × 45) = RM15.38 an hour.

Why your number may differ

Your contract or collective agreement may set a different divisor or hours. Allowances, commissions and bonuses are not included unless you add them to the salary. Employees outside the Act’s coverage may be treated differently.

Frequently asked questions

How does the Employment Act calculate the hourly rate?

For a monthly-rated employee, the daily ordinary rate of pay is the monthly wage ÷ 26, and the hourly rate is that daily rate ÷ the normal hours worked in a day.

Why use 26 and not the real number of working days?

The Act uses 26 days as a fixed divisor for monthly-rated employees, so the rate does not change from month to month.

Is the yearly method different?

Yes. It spreads the whole year’s pay over 52 weeks of normal hours, which is a common way to compare a salary with an hourly or freelance rate.

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