Published On: 15/08/2025By

How to Properly Implement a Workweek of Less Than 45 Hours in Malaysia

Before 1 January 2023, the maximum weekly working hours for employees under the Malaysian Employment Act 1955 was 48 hours.
Following amendments to the Act, this limit has been reduced to 45 hours per week for all employees covered by the law, whether they work fixed hours or rotational shifts.

While the change may seem small, it requires employers to review work schedules, adjust payroll calculations, and ensure compliance with labour laws. Here’s how you can implement the 45-hour workweek correctly — and how Pandahrms can make the process simpler.

1. Understanding the 45-Hour Workweek Rule

Under Section 60A of the Employment Act 1955:

  • The daily limit is 8 working hours.

  • Employees must receive at least 30 minutes of rest after 5 consecutive hours of work.

  • No employee should work more than 10 hours a day.

  • Weekly working hours must not exceed 45 hours.

If an employee works beyond these limits or on their rest day/public holiday, they are entitled to overtime pay (OT) according to the prescribed rates.

2. Why the 45-Hour Limit Was Introduced

The change aligns with the Reduction of Hours Recommendation, 1962 (No. 116) by the International Labour Organization (ILO), which aims to:

  • Improve work-life balance.

  • Ensure employees get adequate rest.

  • Promote sustainable productivity.

Many Malaysian businesses are also using the reduced hours to attract and retain talent by offering shorter workweeks without cutting salaries.

3. How to Implement a Workweek of Less Than 45 Hours

Whether your company operates 5 days or 6 days a week, here’s how you can structure working hours while staying compliant.

Option 1: End the Workday Earlier

Example for a 5-day week:

  • Mon–Fri: 9:00 AM – 6:00 PM (1-hour break)
    Total: 45 hours/week.

Option 2: Start the Workday Later

Example for a 6-day week:

  • Mon–Fri: 9:00 AM – 5:00 PM (8 hours/day)

  • Sat: 9:00 AM – 2:00 PM (5 hours)
    Total: 45 hours/week.

Option 3: Shorten One or More Workdays

Reduce hours on certain days (e.g., early Fridays) while extending slightly on others, as long as the daily and weekly limits are not exceeded.

4. Key Compliance Reminders for Employers

  • Do not reduce salaries solely due to shorter hours, unless agreed in writing by employees.

  • Update employment contracts and staff handbooks to reflect new hours.

  • Adjust overtime calculations according to the new working hour limit.

  • Keep accurate records of attendance and working hours to avoid disputes.

5. How Pandahrms Helps You Manage the Shorter Workweek

Manually tracking working hours, payroll changes, and compliance can be time-consuming — especially if you manage a mix of full-time, shift, and part-time employees.
With Pandahrms, you can:

  • Customise Work Hour Policies – Set different working hour limits (e.g., 40, 44, or 45 hours) for different roles or departments.

  • Automate Payroll Calculations – Overtime, hourly rates, and deductions are adjusted instantly when schedules change.

  • Track Attendance Digitally – Clock-in/out data syncs automatically with payroll.

  • Ensure SOCSO, EPF, and EIS Compliance – Accurate statutory deductions help prevent delays in claims.

  • Store Records for Audits – Attendance and payroll history are securely stored for easy retrieval.

This means you can focus on growing your business, while Pandahrms ensures every detail of working hours and compliance is handled.

6. Final Thoughts

Implementing a shorter workweek in Malaysia is more than just changing schedules — it’s about staying compliant, maintaining productivity, and ensuring accurate payroll management.
By following the legal requirements and using a reliable HRMS like Pandahrms, you can manage reduced working hours effortlessly while keeping employees satisfied.