[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"page:work\u002Fminimum-wage\u002Fregulations\u002Fminimum-wages-regulations-malaysia":3},{"id":4,"slug":5,"title":6,"short_title":7,"intro_text":7,"meta_description":8,"seo_title":8,"path":9,"content_type":10,"locale":11,"go_live_at":7,"first_published_at":12,"page_created_at":13,"published_at":12,"edit_url":14,"breadcrumbs":15,"seo":27,"rendered":37,"description":38,"body":39,"body_blocks":40,"call_to_action":41,"owner":7,"authors":48,"related_pages":49,"related_sites":50,"in_subsite":51,"contact_page_url":52,"banner_message":53},21559,"minimum-wages-regulations-malaysia","Work and Wages",null,"","\u002Fwork\u002Fminimum-wage\u002Fregulations\u002Fminimum-wages-regulations-malaysia","labourlaw.labourlawpage","EN_MY","2018-10-23T18:07:00+00:00","2025-12-19T10:51:52.224626+00:00","\u002Fcms\u002Fpages\u002F21559\u002Fedit\u002F",[16,19,22,25],{"title":17,"slug":18},"World of Work","work",{"title":20,"slug":21},"Minimum Wages","minimum-wage",{"title":23,"slug":24},"Minimum Wages Regulations","regulations",{"title":26,"slug":5},"Minimum Wages Regulations - Malaysia",{"title":28,"description":8,"image":29,"canonical":30,"robots":31,"og_type":32,"twitter_card":33,"locale":34,"created_at":35,"last_modified_at":36},"Salary, Minimum Wage, Regular Pay - Malaysia","https:\u002F\u002Fwageindicator.org\u002Fmedia\u002Fimages\u002FSocial_media_preview_image_-_2025.2e16d0ba.fill-1200x630.png","https:\u002F\u002Fwageindicator.org\u002Fwork\u002Fminimum-wage\u002Fregulations\u002Fminimum-wages-regulations-malaysia\u002F","index, follow","website","summary_large_image","en","2018-10-23T20:07:00+02:00","2025-12-22T23:26:23.498284+01:00","\u003Cdiv class=\"cobra-ll-view\">\n\n  \n\n    \n    \n  \n  \u003Ch1>Work and Wages\u003C\u002Fh1>\n  \u003Cspan class=\"lastupdated\">This page was last updated on:\n      2026-03-27\u003C\u002Fspan>\n\n  \n\n    \n  \n    \n      \n        \n          \n    \n    \n    \n        \u003Cdiv class=\"teaserItem\">\n          \u003Ch2>Minimum Wage\u003C\u002Fh2>\n          \u003Cp>The main legislation relates to minimum wages in Malaysia are National Wages Consultative Council Act 2011[Act 732], Minimum Wages Order 2022.\u003C\u002Fp>\n\u003Cp>Malaysia’s minimum wages policy is decided under the National Wages Consultative Council Act 2011 (Act 732). There is a tripartite body known as the National Wages Consultative Council which is formed to recommend the minimum wages rate to the Government and once approved by the Government, the Minister of Human Resources makes a Minimum Wages Order.\u003C\u002Fp>\n\u003Cp>The criteria to decide minimum wages are divided into two; base and adjustment criteria. Base criteria include Poverty Line Income (PLI) and Median Wage while the adjustment criteria include changes in Consumer Price Index (CPI), Productivity Growth (P) and Real Unemployment Rate (UE).\u003C\u002Fp>\n\u003Cp>Regardless of the constant changes of minimum wages, the penalties for the offences are:-\u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\" style=\"width: 520px; height: 154px;\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>Offence\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>Penalty\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>First Offence\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>Fine of not more than RM 10,000 per employee. The court may order the employee each employee the difference between the minimum wages rate and the employee’s basic wages.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>General Penalty\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>Fine of not more than RM 10,000 for each offence where no penalty is provided.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>Penalty for Continued Offence\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>A daily fine of not more than RM 1, 000 for continuous offence after conviction.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>Penalty for Repeated Offence\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>A fine of not more than RM 20,000 or imprisonment not exceeding 5 years.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\n\u003Cp>Sources: Minimum Wages Order 2022; Sections 2, 23, 25(1) & 43-47 of the National Wages Consultative Council 2011(Act 732)\u003C\u002Fp>\n\u003Cp>\u003Ca href=\"https:\u002F\u002Fwageindicator.org\u002Fsalary\u002Fminimum-wage\u002Fmalaysia\">For updated minimum wage rates, please refer to the section on minimum wage.\u003C\u002Fa>\u003C\u002Fp>\n        \u003C\u002Fdiv>\n    \n\n\n        \n      \n        \n          \n    \n    \n    \n        \u003Cdiv class=\"teaserItem\">\n          \u003Ch2>Regular Pay\u003C\u002Fh2>\n          \u003Cp>There are several legal definitions of the word wages under the written laws. \u003C\u002Fp>\n\u003Cp>Wages are defined under the Employment Act 1955 as “basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service”. Certain exclusions are applicable like wages do not include value of any house accommodation, travelling allowance, gratuity, annual bonus, etc. Wages have different meanings under different Acts and thus a different explanation of wages is found under §2 of Employees Provident Fund Act 1991.\u003C\u002Fp>\n\u003Cp>Wages have different scope under different sections of the Employment Act 1955 where basically it means basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service. The word wages have different references and purposes under the Employment Act 1955:\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\" style=\"width: 626px; height: 267px;\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>  Elements\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp>S2: Wages (Definition of wages)\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp>S 60I (For the purpose of ORP)\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp>1\u003Csup>st\u003C\u002Fsup> Schedule (For the coverage of employee under the EA)\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Value of house accommodations\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Value of supply food, fuel, light, water, medical attendance\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Employer’s contributions \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Travelling allowance\u002F value of travelling\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Expenses \u002F Reimbursement\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Gratuity payable\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Annual bonus\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Approved incentive payment scheme\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Rest day pay\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Public holiday pay\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Commission\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Subsistence allowance\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"183\">\n\u003Cp>Overtime\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"175\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"142\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"208\">\n\u003Cp style=\"text-align: center;\">x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\n\u003Cp>*For the above table, wages refer to any payment to an employee excluding the X marked box for each section.\u003C\u002Fp>\n\u003Cp>The Employment Act 1955 also has stated some rules and laws on the payment of wages. The Act specifies that a wage period cannot exceed one month and even when the employment contract (referred to as contract of service under the law) does not specify the wage period, it is deemed to be one month. The laws allow employers to pay 7 days after the last day of the wage period and any wages for work done on rest day, public holiday and overtime may be payable not later than the last day of the next wage period. If the Director General of Labour is convinced that payment within such time is not reasonably practicable, he may, on the application of the employer, extend the time of payment by such number of days as he thinks fit.\u003C\u002Fp>\n\u003Cp>When a fixed term contract of service expires or when a contract of service for an unspecified term is terminated due to notice by either party, the wages must be paid not later than the day on which the contract is terminated. The wages also shall be paid on the last date of employment if employer terminates the contract by paying salary in lieu of notice, breach of contract by employee or dismissal for misconduct.  Meanwhile, if the contract is terminated by the employee by paying salary in lieu of notice, without notice due to breach of contract and when the dependants have been exposed to violence or disease that is not stated in the contract , the wages shall be paid not later than the third day after the termination.\u003C\u002Fp>\n\u003Cp>Meanwhile for the payment of wages, there are few periods of pay that shall be applicable in different circumstances upon the termination of contract:\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\" style=\"width: 624px; height: 315px;\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"206\">\n\u003Cp>Pay period\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"539\">\n\u003Cp>Circumstances\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"206\">\n\u003Cp>1 month\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"539\">\n\u003Cp>Normal cycle wage period.  The contract of service shall specify the wage period or if not, it shall not be more than one month.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"206\">\n\u003Cp>1 month (and additional 7 days )\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"539\">\n\u003Cp>Employers have additional 7 days to pay the monthly wages.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"206\">\n\u003Cp>Within the next 1 month\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"539\">\n\u003Cp>The relevancy of the period additional 1 month for payment of wages in references to overtime pay, rest day pay and public holiday pay.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"206\">\n\u003Cp>On the day the contract is terminated\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"539\">\n\u003Cp>A fixed term contract of service expires or\u003C\u002Fp>\n\u003Cp>A fixed term contract of service is terminated with notice by either party\u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"206\">\n\u003Cp>On the last day of employment\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"539\">\n\u003Cp>This is applicable when employer terminates the contract of service in cases of:-\u003C\u002Fp>\n\u003Cp>Paying salary in lieu of notice\u003C\u002Fp>\n\u003Cp>For breach of contract by employee\u003C\u002Fp>\n\u003Cp>Dismissal for misconduct\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"206\">\n\u003Cp>Not later than 3 days after contract is terminated\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"539\">\n\u003Cp>This is applicable when employee terminates the contract of service in case of :-\u003C\u002Fp>\n\u003Cp>Paying salary in lieu of notice\u003C\u002Fp>\n\u003Cp>For breach of contract by employer\u003C\u002Fp>\n\u003Cp>When there is not-stated-in-contract of violence or disease exposure happens\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\n\u003Cp>Employment Act has detailed instructions on deductions from workers’ wages. It sets a general rule that no deductions can be made by an employer from the wages of an employee otherwise than in accordance with Employment Act. It then lists out the conditions when an employer can make lawful deductions (deductions for overpayment, deductions for indemnity due to employer, deductions for recovery of advance without interest) and the certain conditions of deductions that shall not or shall be made except with the request in 7 days writing of the employee (payments to a registered trade union, payment for any shares of employer’s business) or the Director General (payments into any superannuation or worker welfare scheme, payments for recovery of advance with interest, payments for accommodation and food, etc.).\u003C\u002Fp>\n\u003Cp>In general, the employer is not allowed to make deductions from employee’s wages. The exceptions are lawful deductions and at the request of employee upon approval of the DGL. In particular we are referring to:\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\" style=\"width: 624px; height: 322px;\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>Lawful deductions\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>At the request of employee with DGL’s approval\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>Overpayment of wages\u003C\u002Fp>\n\u003Cp>Ie, Employer’s mistake where is the three months immediately preceding the month in which the deductions are made.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>Deductions in any fund, scheme for the benefits of the employee. \u003Cbr\u002F> ie, private provident fund.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>Indemnity due to employer\u003C\u002Fp>\n\u003Cp>Ie, Employee resigns without serving full notice\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>Loans given to employees where interest is charged.\u003C\u002Fp>\n\u003Cp>ie, car loan by employer and interest is charged, instalments may be deducted.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>Recovery of interest-free advance\u003C\u002Fp>\n\u003Cp>Ie, employer has given lawful advances of wages , he may recover it with no interest for such advanced.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>Payments to a third party on behalf of employer.\u003C\u002Fp>\n\u003Cp>ie, employer pays the third party in purchasing employee’s car.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp>Legally Authorized Deductions\u003C\u002Fp>\n\u003Cp>Ie, deductions for EPF, SOCSO and Income Tax , directives from the courts under the Married Women and Children Act 1968.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>Payments for purchasing goods of employer’s business.\u003C\u002Fp>\n\u003Cp>Ie, A tyre manufacturing company to do deductions in respect of the tyres purchased by the employee.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\" width=\"359\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\" width=\"360\">\n\u003Cp>Rental accommondations and cost of food and meals provided by employer as per employee’s request or contract of service.\u003C\u002Fp>\n\u003Cp>Ie, additional pay for house rent of the employee since the rent is more than what has been stated in the contract\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\n\u003Cp>Other than the mentioned deductions, employers can only do deductions if the employer makes an application to the DGL and approval has been obtained. The law states  that the amount of deduction in one month should not be more than 50% of the wages in that month.\u003C\u002Fp>\n\u003Cp>An employer is only allowed to give a loan of more than one month’s salary if it involves;-\u003C\u002Fp>\n\u003Cp>a)     Purchasing , building, renovating a house\u002Fland\u003C\u002Fp>\n\u003Cp>b)     Purchasing a car, motorcycle or bicycle\u003C\u002Fp>\n\u003Cp>c)     Purchasing shares of employer’s business\u003C\u002Fp>\n\u003Cp>d)     Enabling employees to purchase a computer\u003C\u002Fp>\n\u003Cp>e)     Payments of employee’s\u002F immediate family member’s medical expenses\u003C\u002Fp>\n\u003Cp>f)      Payments of daily expenses pending receipt of temporary disablement under SOCSO’s Act\u003C\u002Fp>\n\u003Cp>g)     Payment for educational expenses for self or immediate family member.\u003C\u002Fp>\n\u003Cp>Employers are required to provide a wage slip to every employee (relating to details of wages and other allowances earned during each wage period as specified in Employment Regulations 1957) on or before the date of payment of wages. \u003C\u002Fp>\n\u003Cp>The employer must pay employees through payments into an account (in the employees’ name). Upon written request from an employee, payment could be made in legal tender, by cheque or by pay order.\u003C\u002Fp>\n\u003Cp>Source: Sections 2, 18-22 & 24-25 of the Employment Act 1955 (Act 265); Regulation 9 of the Employment Regulations 1957\u003C\u002Fp>\n        \u003C\u002Fdiv>\n    \n\n\n        \n      \n    \n\n    \n      \n    \n      \u003Cdiv class=\"regulations\">\n        \u003Ch2>Regulations on Work and Wages\u003C\u002Fh2>\n        \u003Cul>\n          \u003Cli>\n            Public Holidays Act 1967, last amended in 2014\n          \u003C\u002Fli>\n          \u003Cli>\n            \n          \u003C\u002Fli>\n          \u003Cli>\n            \n          \u003C\u002Fli>\n          \u003Cli>\n            \n          \u003C\u002Fli>\n          \u003Cli>\n            \n          \u003C\u002Fli>\n          \u003Cli>\n            \n          \u003C\u002Fli>\n          \u003Cli>\n            \n          \u003C\u002Fli>\n          \u003Cli>\n            \n          \u003C\u002Fli>\n          \u003Cli>\n            \n          \u003C\u002Fli>\n        \u003C\u002Ful>\n      \u003C\u002Fdiv>\n\n    \n\n    \n      \n    \n    \u003Cdiv class=\"related\">\n      \u003Ch2>Related Items\u003C\u002Fh2>\n      \n          _ll_compensation_URL_\n      \n          _MW_FOLDER_URL_\n      \n          _SC_URL_\n      \n    \u003C\u002Fdiv>\n\n    \n\n  \n\n    \n    \n\n  \n\n  \n  \n\n  \n    \u003Cstyle>\n\n      h1, h2, h3 {\n      font-weight: bold;\n      margin-top: 20px;\n      margin-bottom: 10px;\n      }\n      \n      .related a {\n        display:block;\n        border: 1px solid transparent;\n      }\n\n      ul ol, ol ol, ol ul {\n      font-size: 100%;\n      }\n\n    \u003C\u002Fstyle>\n\n  \n\n\u003C\u002Fdiv>","Your rights: salary and minimum wages in Malaysia – .","\u003Cdiv>\n\n\u003Cspan>This page was last updated on:\n      2026-03-27\u003C\u002Fspan>\n\u003Cdiv>\n\u003Ch2>Minimum Wage\u003C\u002Fh2>\n\u003Cp>The main legislation relates to minimum wages in Malaysia are National Wages Consultative Council Act 2011[Act 732], Minimum Wages Order 2022.\u003C\u002Fp>\n\u003Cp>Malaysia’s minimum wages policy is decided under the National Wages Consultative Council Act 2011 (Act 732). There is a tripartite body known as the National Wages Consultative Council which is formed to recommend the minimum wages rate to the Government and once approved by the Government, the Minister of Human Resources makes a Minimum Wages Order.\u003C\u002Fp>\n\u003Cp>The criteria to decide minimum wages are divided into two; base and adjustment criteria. Base criteria include Poverty Line Income (PLI) and Median Wage while the adjustment criteria include changes in Consumer Price Index (CPI), Productivity Growth (P) and Real Unemployment Rate (UE).\u003C\u002Fp>\n\u003Cp>Regardless of the constant changes of minimum wages, the penalties for the offences are:-\u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Offence\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Penalty\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>First Offence\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Fine of not more than RM 10,000 per employee. The court may order the employee each employee the difference between the minimum wages rate and the employee’s basic wages.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>General Penalty\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Fine of not more than RM 10,000 for each offence where no penalty is provided.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Penalty for Continued Offence\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>A daily fine of not more than RM 1, 000 for continuous offence after conviction.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Penalty for Repeated Offence\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>A fine of not more than RM 20,000 or imprisonment not exceeding 5 years.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\u003Cp>Sources: Minimum Wages Order 2022; Sections 2, 23, 25(1) & 43-47 of the National Wages Consultative Council 2011(Act 732)\u003C\u002Fp>\n\u003Cp>\u003Ca href=\"https:\u002F\u002Fwageindicator.org\u002Fsalary\u002Fminimum-wage\u002Fmalaysia\">For updated minimum wage rates, please refer to the section on minimum wage.\u003C\u002Fa>\u003C\u002Fp>\n\u003C\u002Fdiv>\n\u003Cdiv>\n\u003Ch2>Regular Pay\u003C\u002Fh2>\n\u003Cp>There are several legal definitions of the word wages under the written laws. \u003C\u002Fp>\n\u003Cp>Wages are defined under the Employment Act 1955 as “basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service”. Certain exclusions are applicable like wages do not include value of any house accommodation, travelling allowance, gratuity, annual bonus, etc. Wages have different meanings under different Acts and thus a different explanation of wages is found under §2 of Employees Provident Fund Act 1991.\u003C\u002Fp>\n\u003Cp>Wages have different scope under different sections of the Employment Act 1955 where basically it means basic wages and all other payments in cash payable to an employee for work done in respect of his contract of service. The word wages have different references and purposes under the Employment Act 1955:\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>  Elements\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>S2: Wages (Definition of wages)\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>S 60I (For the purpose of ORP)\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>1\u003Csup>st\u003C\u002Fsup> Schedule (For the coverage of employee under the EA)\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Value of house accommodations\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Value of supply food, fuel, light, water, medical attendance\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Employer’s contributions \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Travelling allowance\u002F value of travelling\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Expenses \u002F Reimbursement\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Gratuity payable\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Annual bonus\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Approved incentive payment scheme\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Rest day pay\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Public holiday pay\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Commission\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Subsistence allowance\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Overtime\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>x\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\u003Cp>*For the above table, wages refer to any payment to an employee excluding the X marked box for each section.\u003C\u002Fp>\n\u003Cp>The Employment Act 1955 also has stated some rules and laws on the payment of wages. The Act specifies that a wage period cannot exceed one month and even when the employment contract (referred to as contract of service under the law) does not specify the wage period, it is deemed to be one month. The laws allow employers to pay 7 days after the last day of the wage period and any wages for work done on rest day, public holiday and overtime may be payable not later than the last day of the next wage period. If the Director General of Labour is convinced that payment within such time is not reasonably practicable, he may, on the application of the employer, extend the time of payment by such number of days as he thinks fit.\u003C\u002Fp>\n\u003Cp>When a fixed term contract of service expires or when a contract of service for an unspecified term is terminated due to notice by either party, the wages must be paid not later than the day on which the contract is terminated. The wages also shall be paid on the last date of employment if employer terminates the contract by paying salary in lieu of notice, breach of contract by employee or dismissal for misconduct.  Meanwhile, if the contract is terminated by the employee by paying salary in lieu of notice, without notice due to breach of contract and when the dependants have been exposed to violence or disease that is not stated in the contract , the wages shall be paid not later than the third day after the termination.\u003C\u002Fp>\n\u003Cp>Meanwhile for the payment of wages, there are few periods of pay that shall be applicable in different circumstances upon the termination of contract:\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Pay period\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Circumstances\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>1 month\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Normal cycle wage period.  The contract of service shall specify the wage period or if not, it shall not be more than one month.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>1 month (and additional 7 days )\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Employers have additional 7 days to pay the monthly wages.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Within the next 1 month\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>The relevancy of the period additional 1 month for payment of wages in references to overtime pay, rest day pay and public holiday pay.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>On the day the contract is terminated\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>A fixed term contract of service expires or\u003C\u002Fp>\n\u003Cp>A fixed term contract of service is terminated with notice by either party\u003C\u002Fp>\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>On the last day of employment\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>This is applicable when employer terminates the contract of service in cases of:-\u003C\u002Fp>\n\u003Cp>Paying salary in lieu of notice\u003C\u002Fp>\n\u003Cp>For breach of contract by employee\u003C\u002Fp>\n\u003Cp>Dismissal for misconduct\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Not later than 3 days after contract is terminated\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>This is applicable when employee terminates the contract of service in case of :-\u003C\u002Fp>\n\u003Cp>Paying salary in lieu of notice\u003C\u002Fp>\n\u003Cp>For breach of contract by employer\u003C\u002Fp>\n\u003Cp>When there is not-stated-in-contract of violence or disease exposure happens\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\u003Cp>Employment Act has detailed instructions on deductions from workers’ wages. It sets a general rule that no deductions can be made by an employer from the wages of an employee otherwise than in accordance with Employment Act. It then lists out the conditions when an employer can make lawful deductions (deductions for overpayment, deductions for indemnity due to employer, deductions for recovery of advance without interest) and the certain conditions of deductions that shall not or shall be made except with the request in 7 days writing of the employee (payments to a registered trade union, payment for any shares of employer’s business) or the Director General (payments into any superannuation or worker welfare scheme, payments for recovery of advance with interest, payments for accommodation and food, etc.).\u003C\u002Fp>\n\u003Cp>In general, the employer is not allowed to make deductions from employee’s wages. The exceptions are lawful deductions and at the request of employee upon approval of the DGL. In particular we are referring to:\u003C\u002Fp>\n\u003Ctable border=\"1\" cellpadding=\"0\" cellspacing=\"0\">\n\u003Ctbody>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Lawful deductions\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>At the request of employee with DGL’s approval\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Overpayment of wages\u003C\u002Fp>\n\u003Cp>Ie, Employer’s mistake where is the three months immediately preceding the month in which the deductions are made.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Deductions in any fund, scheme for the benefits of the employee. \u003Cbr\u002F> ie, private provident fund.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Indemnity due to employer\u003C\u002Fp>\n\u003Cp>Ie, Employee resigns without serving full notice\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Loans given to employees where interest is charged.\u003C\u002Fp>\n\u003Cp>ie, car loan by employer and interest is charged, instalments may be deducted.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Recovery of interest-free advance\u003C\u002Fp>\n\u003Cp>Ie, employer has given lawful advances of wages , he may recover it with no interest for such advanced.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Payments to a third party on behalf of employer.\u003C\u002Fp>\n\u003Cp>ie, employer pays the third party in purchasing employee’s car.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp>Legally Authorized Deductions\u003C\u002Fp>\n\u003Cp>Ie, deductions for EPF, SOCSO and Income Tax , directives from the courts under the Married Women and Children Act 1968.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Payments for purchasing goods of employer’s business.\u003C\u002Fp>\n\u003Cp>Ie, A tyre manufacturing company to do deductions in respect of the tyres purchased by the employee.\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003Ctr>\n\u003Ctd valign=\"top\">\n\u003Cp> \u003C\u002Fp>\n\u003C\u002Ftd>\n\u003Ctd valign=\"top\">\n\u003Cp>Rental accommondations and cost of food and meals provided by employer as per employee’s request or contract of service.\u003C\u002Fp>\n\u003Cp>Ie, additional pay for house rent of the employee since the rent is more than what has been stated in the contract\u003C\u002Fp>\n\u003C\u002Ftd>\n\u003C\u002Ftr>\n\u003C\u002Ftbody>\n\u003C\u002Ftable>\n\u003Cp>Other than the mentioned deductions, employers can only do deductions if the employer makes an application to the DGL and approval has been obtained. The law states  that the amount of deduction in one month should not be more than 50% of the wages in that month.\u003C\u002Fp>\n\u003Cp>An employer is only allowed to give a loan of more than one month’s salary if it involves;-\u003C\u002Fp>\n\u003Cp>a)     Purchasing , building, renovating a house\u002Fland\u003C\u002Fp>\n\u003Cp>b)     Purchasing a car, motorcycle or bicycle\u003C\u002Fp>\n\u003Cp>c)     Purchasing shares of employer’s business\u003C\u002Fp>\n\u003Cp>d)     Enabling employees to purchase a computer\u003C\u002Fp>\n\u003Cp>e)     Payments of employee’s\u002F immediate family member’s medical expenses\u003C\u002Fp>\n\u003Cp>f)      Payments of daily expenses pending receipt of temporary disablement under SOCSO’s Act\u003C\u002Fp>\n\u003Cp>g)     Payment for educational expenses for self or immediate family member.\u003C\u002Fp>\n\u003Cp>Employers are required to provide a wage slip to every employee (relating to details of wages and other allowances earned during each wage period as specified in Employment Regulations 1957) on or before the date of payment of wages. \u003C\u002Fp>\n\u003Cp>The employer must pay employees through payments into an account (in the employees’ name). Upon written request from an employee, payment could be made in legal tender, by cheque or by pay order.\u003C\u002Fp>\n\u003Cp>Source: Sections 2, 18-22 & 24-25 of the Employment Act 1955 (Act 265); Regulation 9 of the Employment Regulations 1957\u003C\u002Fp>\n\u003C\u002Fdiv>\n\u003Cdiv>\n\u003Ch2>Regulations on Work and Wages\u003C\u002Fh2>\n\u003Cul>\n\u003Cli>\n            Public Holidays Act 1967, last amended in 2014\n          \u003C\u002Fli>\n\u003Cli>\n\u003C\u002Fli>\n\u003Cli>\n\u003C\u002Fli>\n\u003Cli>\n\u003C\u002Fli>\n\u003Cli>\n\u003C\u002Fli>\n\u003Cli>\n\u003C\u002Fli>\n\u003Cli>\n\u003C\u002Fli>\n\u003Cli>\n\u003C\u002Fli>\n\u003Cli>\n\u003C\u002Fli>\n\u003C\u002Ful>\n\u003C\u002Fdiv>\n\u003Cdiv>\n\u003Ch2>Related Items\u003C\u002Fh2>\n      \n          \n      \n          \n      \n          \n      \n    \u003C\u002Fdiv>\n\u003Cstyle>\n\n      h1, h2, h3 {\n      font-weight: bold;\n      margin-top: 20px;\n      margin-bottom: 10px;\n      }\n      \n      .related a {\n        display:block;\n        border: 1px solid transparent;\n      }\n\n      ul ol, ol ol, ol ul {\n      font-size: 100%;\n      }\n\n    \u003C\u002Fstyle>\n\u003C\u002Fdiv>",[],{"text":42,"link":43},"Contact us",{"title":42,"url":44,"description":42,"rel":45,"type":46,"id":47},"\u002Fabout\u002Fcontact","follow","internal",24590,[],[],[],false,"\u002Fwork\u002Fliving-wages\u002Fcontact-us","\u003Cp>Welcome to WageIndicator. Same organisation, same information, new look!\u003C\u002Fp>"]