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6 October 2026

Daily & Hourly Rate Calculation Malaysia: Formula & Examples

How to calculate your daily and hourly rate from monthly salary in Malaysia: the Employment Act 26-day formula, with examples and a table.

Free tool: Hourly & Daily Rate Calculator →

To work out a daily or hourly rate in Malaysia, the Employment Act convention divides the monthly salary by 26 working days to get the daily rate, then divides the daily rate by the normal working hours per day to get the hourly rate. This is called the ordinary rate of pay.

The formula

Daily rate = monthly salary ÷ 26. Hourly rate = daily rate ÷ hours per day, usually 8. For example, a monthly salary of RM2,600 gives a daily rate of RM100 and an hourly rate of RM12.50.

Daily and hourly rates by monthly salary

The table uses 26 working days and an 8-hour day.

Daily and hourly rate by monthly salary
Monthly salaryDaily rate (÷ 26)Hourly rate (÷ 8)
RM 2,000RM 76.92RM 9.62
RM 2,600RM 100.00RM 12.50
RM 3,000RM 115.38RM 14.42
RM 4,000RM 153.85RM 19.23
RM 5,000RM 192.31RM 24.04

Why 26 days and not 30?

The Employment Act uses 26 working days as the standard divisor for the ordinary rate of pay, which is the base for overtime and similar pay. That is different from pro-rating a salary for an incomplete month, where the actual number of days in that calendar month is used.

Where you use the hourly rate

The hourly rate is the starting point for overtime pay: 1.5 times on a normal working day, with higher rates on rest days and public holidays.

Frequently asked questions

How do I calculate my daily rate from monthly salary in Malaysia?

Divide your monthly salary by 26 working days. For example, RM2,600 ÷ 26 = RM100 a day.

How do I calculate my hourly rate in Malaysia?

Divide your daily rate by your normal working hours per day, usually 8. A daily rate of RM100 gives RM12.50 an hour.

Why does Malaysia divide by 26 days?

The Employment Act uses a 26-day working month as the standard divisor for the ordinary rate of pay, so overtime and similar pay stay consistent regardless of how many days are in the calendar month.