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Late salaries are stressful. Period.
Anyone who's ever waited anxiously for their salary to come in knows the panic that comes when the usual salary date passes and your account balance is still empty.
Whether you're in a big company, a small startup, or working here as an international employee, you have rights under Malaysian law — and it's important to know how to use them.
Your employer is legally required to pay you on time
The Employment Act 1955 (Act 265), Section 19 states that "every employer shall pay to each of his employees not later than the seventh day after the last day of any wage period the wages, less lawful deductions earned by such employee during such wage period."
Wage period = The time you work for (usually a full month, e.g. 1 to 31 August)
That means if your wage period is 1 to 31 August, your employer has until 7 September to pay you. If your company's pay cycle closes on 15 August, then your salary must be in by 22 August.
Anything beyond that window counts as a breach of the law.
Startups and small businesses are not exempt from the law
It's common to hear excuses like "cash flow problem" or "investor funding not in" when you're in a small company or startup. While it's true these businesses often face tight budgets, financial struggles don't give them the right to delay your salary.
Legally, salary payment is a core obligation. There's no exemption just because you're in a startup.
International workers also have protection in Malaysia
Foreign workers, expatriates, and employment pass holders are equally covered under the amended Employment Act.
- Employers must pay through a local bank account.
They cannot hold passports or threaten your visa status (both illegal). - Immigration and the Human Resources Ministry actively monitor employers of foreign workers.
If they fail to pay on time, they can be fined, blacklisted, or even lose their hiring licences.
So, what should you do if you don't get your salary on time?
1. Clarify internally first
Check if it's a banking delay, weekend, or public holiday. Ask HR or your boss for the exact date of payment. Keep a record of payslips, contracts, and messages.
2. If it's confirmed your salary is withheld, you can:
- File a complaint with the Labour Department (JTK/JTKSM).
- JTK can summon your employer and unresolved cases can go to the Labour Court.
- Willful delays can lead to fines of up to RM50,000 per offence.
If you're a foreign worker, also report to the Immigration Department if your passport is withheld or visa is threatened.
3. Other legal options you can take
- Contact the Industrial Relations Department (JPP): If the salary issue is tied to dismissal or being forced to resign.
- Go to the civil court: If you're a higher earner and want to sue for breach of contract/unpaid wages.
