Unpaid Leave Calculation in Malaysia by 26 or 30 days?

Salary Calculation Malaysia

Compliant with Labor Law and Government Requirements
Calculating salaries can be a daunting task, especially for those who are new to the workforce or for employers who are new in Malaysia. However, it is crucial to ensure that salaries are calculated correctly, compliant with Malaysia’s labor laws and government requirements such as the KWSP, PERKESO, LHDN, and HRDF.

This article will provide a guideline on how to calculate salaries per day in Malaysia, along with tips to ensure compliance with relevant laws and regulations.

What is the Minimum Salary in Malaysia?

Before diving into the specifics of how to calculate salary per day, the first thing to understand is that the minimum wage in Malaysia is determined by the government and is reviewed annually. As of 2022, the minimum wage in Malaysia is RM 1,500 per month.

Employer with 5 or more employees

According to the Minimum Wage Order (MWO) 2022, the minimum wage for all employees in Malaysia will be raised to RM1,500 effective on May 1, 2022. This increase applies to all sectors employers with or more than 5 employees. 

Employer below 5 employees

To assist small businesses in coping with economic and financial difficulties in 2023, the Malaysian government has postponed the enforcement of the RM1,500 minimum wage for small businesses with less than five employees from January 1, 2023, to July 1, 2023.

How to calculate salary per day in Malaysia?

Calculation of wages for incomplete month's work

The following section explain the formula for computing wages of an employees who works for less than a full month due to various circumstances, such as starting work after the first day of the month, terminating employment before the end of the month, taking unpaid leave for one or more days.

To calculate salary per day in Malaysia, it is necessary to comply with the regulations stated in the Employment Act as below:

Monthly wages
Number of days of the particular wage period
Number of days eligible in the wage period

We have included a few examples below to help you better understand how salary per day is calculated.

Example 1:

Staff A, with a monthly wage of RM 3500, joined on January 18th

The computation of the basic salary for the month of January is as follows:

RM 3500
31 Days (January has 31 days)
14 days (18th Jan to 31th Jan)

As a result, staff A’s salary for January will be RM 1580.65.

SQL Payroll users can take full advantage of our system by simply inputting the join date for each employee into the database. Our software automates the calculation of monthly wages according to the latest labor laws.  By utilizing SQL Payroll, you can save time and effort while ensuring the accuracy and compliance of your payroll records.

Example 2:

Staff A takes an unpaid leave on April 4th

The calculation of the unpaid leave is as follow:

RM 3500
30 Days (April has 30 days)

As a result, RM 116.67 will be deducted from Staff A’s salary for one day of unpaid leave during the month of April

With SQL Payroll system, you can easily track and calculate unpaid leave by recording the number of days an employee takes off. Our software automatically calculates the unpaid leave amount, which can be broken down into small unit such as half day, one hour, or even down to the minute. This feature is especially useful for businesses that need to deduct unpaid leave due to lateness, as it allows for precise tracking and calculation of the corresponding deductions

Example 3:

Staff A, resigned on 25 May

The salary for the month of May as follow:
RM 3500
31 Days (May has 31 days)
25 days (1th May to 25th May)

Staff A will receive RM 2822.58 for the month of May due to his resignation before the end of the month.

By inputting the resignation date, SQL Payroll automatically calculates their salary for the month, up until the date of resignation. This feature not only saves time but also eliminates the need for manual calculations, ensuring accurate payroll records.

📢 Attention business owners & Payroll HR! 🔊

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With our affordable and easy-to-use SQL Payroll system, you can rest assured that your payroll will comply with the latest government rules and regulations. We take care of everything from salary calculation to compliance and submission, including important submission like CP 22, CP22A, CP21, PCB Audit, EA Form, and Borang E. By using SQL Payroll system, you can eliminate the risk and hassle of manual payroll processing and ensure accuracy and compliance in your payroll records.

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