Timely salary payments are not just a professional courtesy — they’re a legal requirement. In Malaysia, the Employment Act 1955 protects employees from late or non-payment of wages by setting clear obligations for employers. However, salary delays still happen in certain workplaces, sometimes causing financial stress and uncertainty for workers.
In this article, we break down what Malaysian labour law says about salary payment timelines, the rights of employees when payments are late, and what employers should know to stay compliant.
What the Law Says About Salary Payments
Under Section 19(1) of the Employment Act 1955, all employers are required to pay wages no later than the 7th day after the end of the wage period. Most commonly, if the wage period ends on the last day of the month, salary must be paid by the 7th of the following month.
Failure to do so is considered a violation of the Act, which could lead to fines and other legal consequences.
⚖️ Definition of Wages
“Wages” include:
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Basic salary
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Overtime pay
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Allowances (where applicable)
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Other contractual payments such as commissions or bonuses (if part of the agreed salary structure)
What Happens If Salary Is Paid Late?
If an employer delays salary beyond the 7-day window:
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The employer is committing an offence under the Employment Act.
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Employees have the right to lodge a complaint with the Labour Department (Jabatan Tenaga Kerja, JTK).
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If found guilty, employers can be fined up to RM10,000 per offence (Section 100 of the Act).
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Repeated offences may result in stricter penalties.
Employee Rights: What You Can Do
If your salary is paid late, here are the steps you can take:
1. Communicate Internally First
Check with your HR department or employer to understand the reason for the delay. Sometimes, it may be due to a temporary technical or banking issue.
2. Keep Documentation
Always keep salary slips, bank statements, employment contracts, and communication records (emails, messages) as proof of late payment.
3. Report to the Labour Office
If the issue is unresolved, you can lodge a formal complaint at the nearest JTK office. Employees earning up to RM4,000/month, or those involved in manual labour regardless of salary, are eligible to seek redress under the Act.
Employer Obligations: What You Should Know
Timely salary payment is part of your legal and ethical responsibility. Here’s what employers must ensure:
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Disburse salaries no later than the 7th day after the end of each wage period.
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Maintain clear payroll records, including payment dates and amounts.
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Have contingency plans in place to ensure cash flow doesn’t disrupt salary schedules.
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Implement a reliable HR and payroll system to reduce the risk of errors or delays.
Delaying salary payments not only affects staff morale and trust but can also lead to legal disputes, investigations, and damage to your company’s reputation.
How Pandahrms Can Help Employers Stay Compliant
Manual payroll processes can be prone to human error and administrative delays. That’s where Pandahrms steps in.
With our automated payroll module, you can:
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Schedule timely salary payments
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Auto-generate payslips and payment reports
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Track payment status and employee records
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Ensure full compliance with Malaysia’s Employment Act
✅ No more manual tracking
✅ No more last-minute calculations
✅ Just timely, accurate payroll – every time
Don’t Let Late Payments Hurt Your Team
Salary delays may seem like a small issue, but in legal terms, it’s a serious offence in Malaysia. Employers must treat payroll obligations with the same urgency as any other compliance requirement. For employees, understanding your rights ensures you can take appropriate action if you’re affected.
Whether you’re a growing SME or a large enterprise, using a reliable HRMS like Pandahrms can protect both your business and your workforce.
📲 Want to avoid payroll headaches? Contact us to schedule a personalized demo today and discover how Pandahrms keeps your salary process running smoothly and legally.
