Salary vs. Wages

In Malaysia, the Employment Act 1955 (EA1955) doesn’t actually use the word salary.
It uses “wages” and it means all remuneration payable under a contract of service for work done, excluding certain items such as statutory contributions, travel allowances, and reimbursements.

However in everyday HR and corporate lingo, we often say salary, typically referring to a fixed regular payment such as a monthly basic salary. It’s a broader, more casual term that isn’t legally defined under the EA1955.

Meanwhile, wages generally refer to the total package including variable payouts like commission, overtime, and allowances.

So, in short both are correct within their context.
The difference will be the legal interpretation and everyday usage.

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