Not Paying Salary Through Bank Account Is An Offense

Employers are urged to comply with the Employment Act 1955 (Act 265) following complaints by some workers that they have not received wages or have had wages withheld from them.

Human Resources Minister V. Sivakumar said unpaid or withheld wages are one of the 11 indicators of forced labour as described by the International Labour Organisation (ILO).

The ministry is always working to address problems, especially forced labour, and find different mechanisms to solve issues that arise.

“Regarding late or withheld wages, improving employers’ compliance with wage payments through bank accounts is one of the mechanisms to monitor the capacity of every employer in our country.

“The instructions for paying wages through bank accounts have long been stipulated in Act 265,” he told a press conference earlier today.

The payment of wages in cash or cheque can only be done at the employee’s request and with permission from the Director General of the Department of Labor of Peninsular Malaysia, as stated under Section 25A(1) of the same law.

“Any employer who does not make salary payments through the bank account as stipulated is considered to have committed an offence and if convicted may be fined not more than RM50,000,” Sivakumar added.

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