EA1955: (Fun) Fact about Wages

Wages in EA basically means your basic pay + fixed allowances (take note the actual definition is actually panjang-lebar).

Wages period specified in contract of service cannot exceed 1 month.

Wages paid cannot be later than the 7th day after the last day of the wage period, less lawful deductions.

Wages advanced to the employee cannot exceed the amount the employee earned in the preceding month unless the monies enables the employee to purchase/build/improve a house or purchase livestock/land/motorcar/motorcycle/bicycle/company shares/computer or pay family medical/education expenses.

Wages are not due if the employee is absence from work through imprisonment or attendance in court for the employee’s trouble.

Wages deducted in any wage period cannot exceed 50% of the wages earned during the period unless it’s indemnity payable for breaking the contract (ie notice in lieu), final payment due or any remaining unrecovered sum owned to the employer on the termination of service.

Wages are to be paid through bank (only changed in 2012), otherwise, the employee would need to write in a request.

That’s all for today!

Bimbo

#EA1955 #HRMatters #Wages

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Ku Sim Ling, fondly known as AuntyHR™ on social media, is a seasoned HR expert with 20 years of experience in the workforce solutions industry. With half a million followers across LinkedIn, Instagram and TikTok, she's influencing the HR landscape from Malaysia.

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