If you have updated an overtime (OT) rate but the payroll is still calculating using the old amount after running Process Pay, the issue is usually related to the Maximum Pay Allowed to Calculate HRP setting.
When the employee’s salary exceeds the configured OT ceiling, the system limits the OT calculation to that ceiling amount. As a result, any new OT rate changes may appear not to apply.
Important Notes About OT Eligibility in Malaysia
Under the Employement Act 1955 (effective 2023)
Employees earning RM4,000 and below per month are generally covered under overtime (OT) law.
Employees performing manual labor work are also covered regardless of salary.
Employees earning above RM4,000 will depend on the:
Employment contract
Company policy
Step 1: Check the Hourly Rate of Pay (HRP) Salary Ceiling in Parameter Setup
This is the most common cause of the issue.
The value in Maximum Pay Allowed to Calculate HRP must be equal to or higher than the highest employee basic salary in your company.
Go to Housekeeping, Setup, Parameter Setup.
Open the Pay Calculation tab.
Under Overtime Determination, locate Maximum Pay Allowed to Calculate HRP.
Check the value currently set.
If the amount is lower than the employee’s basic salary, update it accordingly.
Recommended values:
RM4,000
RM10,000
Click Apply.
Click OK.
Example:
If,
Employee basic salary = RM3,800
Maximum Pay Allowed to Calculate HRP = RM2,500
The system will still calculate OT based on RM2,500 instead of RM3,800, even after editing the OT rate.
Updating the ceiling to RM4,000 will allow the correct OT rate calculation to apply.
Step 2: Check the Employee’s Individual OT Ceiling
Each employee can also have their own OT ceiling setting. This individual setting can override the global Parameter Setup value.
Go to Personnel, Add/Update Employees.
Open the affected employee record.
Click the Settings (Cog Icon).
Select Employee Settings, Overtime Settings.
Locate Max Pay to Calculate OT.
Update the amount if required.
Recommended values:
RM 4,000
RM 10,000
Click Save.
Run Process Pay again for the affected employee.
If the issue still persists, please raise a case via the MyAccess Portal.