Minimum Wages & Payment Method

The Minimum Wage Order has recently increased the minimum monthly wage of employees to RM1,500 per month from 1 May 2022. Consequently, it is now mandatory for employers to ensure that their employees receive at least this minimum monthly salary.

Failure to comply with the stipulated minimum wage may result in significant penalties for employers. According to Section 43 of the National Wages Consultative Council Act 2011, employers who do not adhere to the minimum wage requirement may face fines of up to RM10,000 per employee.

Referring to Section 19 of the Employment Act 1955, the employer shall not pay his employees later than the 7th day after the end of each wage period, and the payment method of the wages should not be cash. If the employment contract doesn't specify a wage period, it is considered to be one month.

It's important to note that no interest can be charged on advance salary, and the advance amount should not exceed one month's wages, except under specific conditions.

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