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Salary and Pay Rate Calculations (Malaysia)

Understand how Daily Rate, Gross Rate of Pay, and Ordinary Rate of Pay are calculated for Malaysian salaried employees in StaffAny PayrollAny.

Written by StaffAny

Contents of this article are applicable to the following users

Tier: N/A

Product: PayrollAny

Platform: Web

This guide will cover the following definitions:


1. Daily Rate (Malaysia)

Definition:
The Daily Rate is the per-day equivalent of an employee's monthly salary. It is used to calculate pay adjustments such as public holiday pay and incomplete-month deductions for salaried employees on a Malaysian payroll.

The formula is:

Daily Rate = Monthly Salary ÷ 26

The divisor of 26 is the statutory working days per month prescribed under the Malaysian Employment Act 1955 (Malaysia, currently in force).

  • Example:
    An employee has a monthly salary of MYR 3,000.
    Daily Rate = 3,000 ÷ 26 ≈ MYR 115.38

Note: The Daily Rate is only computed for Salaried employees under a Malaysia payroll scope. It is not available for Hourly employees.


2. Gross Rate of Pay (Salaried, Malaysia)

Definition:
The Gross Rate of Pay (Malaysia) is the per-day rate derived from an employee's total gross monthly compensation — that is, the monthly salary plus any pay items marked as Include in Gross Rate of Pay. It is used to calculate pay items that are required by law to be based on the gross rate (e.g. certain overtime and public holiday calculations).

The formula is:

Gross Rate of Pay (MY) = (Monthly Salary + Included Pay Items) ÷ 26

The divisor of 26 is the statutory working days per month under the Malaysian Employment Act 1955.

  • Example:
    An employee has a monthly salary of MYR 3,000 and a fixed monthly allowance of MYR 200 that is marked as Include in Gross Rate of Pay.
    Monthly Gross Base = 3,000 + 200 = 3,200
    Gross Rate of Pay (MY) = 3,200 ÷ 26 ≈ MYR 123.08

Which pay items are included?
When creating or editing a pay item in Payroll Settings > Pay Items, toggle Include in Gross Rate of Pay to control whether that pay item contributes to the gross base. Pay items using a Gross Rate of Pay or Incomplete Month Pay Daily Rate formula cannot themselves be included in the gross base.

Note: The Gross Rate of Pay (Malaysia) is only available for organisations on a Malaysia payroll scope. Organisations on a Singapore payroll scope see the Singapore equivalent instead.


3. Ordinary Rate of Pay (Salaried, Malaysia)

Definition:
The Ordinary Rate of Pay (Malaysia) is the per-day rate based on an employee's monthly salary alone, excluding additional pay items. It is used for calculations that require the ordinary rate, such as rest-day pay under the Malaysian Employment Act 1955.

The formula is:

Ordinary Rate of Pay (MY) = Monthly Salary ÷ 26

  • Example:
    An employee has a monthly salary of MYR 3,000.
    Ordinary Rate of Pay = 3,000 ÷ 26 ≈ MYR 115.38

Difference from Gross Rate of Pay:

  • Ordinary Rate of Pay — uses monthly salary only (÷ 26).

  • Gross Rate of Pay — uses monthly salary plus all pay items marked Include in Gross Rate of Pay (÷ 26).

Note: This rate is only exposed when the organisation's payroll scope is set to Malaysia. It is not shown on Singapore or Indonesia payrolls.


4. Hiding Irrelevant SG Rates

When an organisation is set to a Malaysia payroll scope, StaffAny automatically hides Singapore-only rate types from pay item configuration. This means the following options are not shown when editing or creating a pay item:

  • Gross Rate of Pay (Salaried, Singapore)

  • Incomplete Month Pay Daily Rate (Singapore)

  • Incomplete Month Pay Daily Rate (Legacy — Singapore)

Conversely, Gross Rate of Pay (Salaried, Malaysia) and Ordinary Rate of Pay (Salaried, Malaysia) are only visible for Malaysia payroll organisations and are hidden for Singapore payrolls.

This scoping is applied automatically based on your organisation's payroll setting — no manual configuration is required.


FAQ

Why does StaffAny use 26 as the divisor for Malaysian rates?

26 working days per month is the statutory divisor prescribed under the Malaysian Employment Act 1955 for calculating daily rates. StaffAny uses this fixed divisor for all Malaysian salaried employees regardless of the organisation's individual working day settings.

Can I use both Gross Rate of Pay and Ordinary Rate of Pay in the same payrun?

Yes. Both rates are available as rate type options for pay items under a Malaysia payroll. Gross Rate of Pay includes additional allowances in the base; Ordinary Rate of Pay uses the basic salary only. Assign each pay item the rate type that matches its legal requirement.

Does the Daily Rate appear on the payslip?

The Daily Rate is used internally as a calculation input (e.g. for public holiday pay or NPL deductions) and may appear as a breakdown line depending on how pay items are configured. It is not a standalone payslip line item by default.


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