Question: When must salary be paid in Malaysia?

Salaries are usually paid monthly. Salaries must be paid within 7 days of the following month.

When should salary be paid?

Due Date for Salary Payment and Wages

As per the provisions of the Payment of Wages Act, 1936, wages need to be paid to employees before the expiry of the 7th day of the last day of the wage period, where number of employees are less than 1000.

Is 13th month salary compulsory in Malaysia?

Additional Benefits in Malaysia

The 13th-month bonus is not legally required but is common. Performance-based bonuses are also common in Malaysia.

Can employer hold salary after resignation in Malaysia?

An employer cannot delay the payment of wages to the employees. … The affected employee is entitled to resign and to have his resignation treated as a constructive dismissal because the employer had repudiated an essential term of the contract.

What happens if salary is not paid on time?

In case of any discrepancy or non-payment of salary one can approach the labour commissioner to seek redressal. 3. Cases that come to the labour court must be decided upon within a three-month period. If the matter is not resolved by the labour commissioner the same can be pursued in a court of law by the employee.

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What is the minimum basic salary?

However, there is also a discussion that the basic minimum salary of the employees may be increased. According to the new Wage Code rules, the basic salary of the employees should be 50% of the total salary or the Cost to Company (CTC), and not less than this.

Do I get paid if I resign?

Generally, upon resignation or dismissal, an employee is entitled to be paid the notice pay where applicable, salary up to last day worked, plus any outstanding leave pay.

What is the rule for 13th month pay?

Under Presidential Decree No. 851 or the 13th Month Pay Law and its Implementing Rules and Regulations (“IRR”), every employer is required to pay a 13th month pay to their rank-and-file employees regardless of position, designation, employment status, and irrespective of the method by which their wages are paid.

Who is eligible for 13th month pay?

All non-management employees are entitled to 13th month pay as long as they have worked at least one month for the employer (managers also often receive 13th month pay, although it’s not required).

What is the formula of 13th month pay?

Employees are paid 13th month pay in two installments – once in June and again in December. The amount paid each time is equivalent to 50% of the highest monthly salary paid in the months prior to receiving aguinaldo. Here the formula is: (monthly salary / 12) x months worked = 13th month pay.

Can I resign in 24 hours in Malaysia?

The answer is that it is totally illegal – nowhere in the BCEA is their any provision allowing an employee to terminate his employment contract on 24 hours notice. The employer must handle this in terms of breach of contract.

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Can employer reduce salary in Malaysia?

Primarily, employers are not permitted to deduct employees’ wages or to impose a pay cut, without first obtaining the employees’ consent. However, employers may set a pay cut or deduct employee’ salaries employees under certain circumstances.

Where can I complain about my employer in Malaysia?

Here are the steps:

  • You can file a complaint by sending an official letter to the nearest Labour Department, email to, visit the nearest local Labour Department office or call 03-8000 8000. …
  • Don’t forget to bring a copy of the supporting documents i.e. contract or appointment letter.
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