Malaysia: Pay and Benefits

Original authors: Lydia Lai Syn Yi and Lim Pei Yuan, Michael Chai & Co.

Summary

• Pay levels are regulated by legislation. (See General)
• There are no specific rules on pay transparency. (See Pay transparency)
• There are statutory rules on the timing of payment of wages. (See Payment of wages)
• There are statutory rules on deductions from wages. (See Deductions)
• There is no specific national legislation dealing with the matter of equal remuneration for men and women for work of equal value. (See Equal pay)
• There are statutory rules on the national minimum wage, although these rules do not apply to some categories of employee. (See Minimum wage)
• Certain categories of employees are entitled to a pension, while others contribute to the Employees Provident Fund that provides savings for retirement. (See Pensions)
• Employers are obliged to make a monthly tax deduction at source from employees' pay. (See Income tax and social security)
• Employees are entitled to paid sick leave, although this does not apply to some categories of employee. (See Sick pay)
• Although it is not a statutory requirement, employment contracts and collective agreements may provide for employers to make bonuses to employees. (See Bonuses)
• Employers may provide employees with benefits in kind. (See Benefits in kind)