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When Companies Need To Pay Overtime To Employee

What is salary

Salary refers to remuneration, including allowances, paid for work done under a contract of service.

It does not include:

The value of accommodation, utilities or other amenities.

Pension or provident fund contribution paid by the employer.

Travelling allowance.

Payments for expenses incurred during work.

Gratuity payable on discharge or retirement.

Retrenchment benefits.

The standard workweek  is 40 hours – eight hours a day for five days a week. However , employees covered under the Employment Act are allowed to work a maximum of 44 hours per week.  Employer is required to pay Over time , if the employee work more then 44 hours per week

If the employee work less than 35 hours a week, the employee are a part-time employee covered by the Employment of Part-Time Employees Regulations

Part IV of the Employment Act,  only applies to:

A workman (doing manual labour) earning a basic monthly salary of not more than $4,500.

An employee who is not a workman, but who is covered by the Employment Act and earns a monthly basic salary of not more than $2,600.

Part IV of the Act does not cover all managers or executives.

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