What to Do When Your Employer Doesn’t Pay Your Salary in Malaysia
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Employer Not Paying Salary in Malaysia? Here’s What Employees Should Do
If your employer is delaying or refusing to pay your salary, you are not without options. Malaysia’s employment laws set clear deadlines for wage payment and give employees several avenues — from informal resolution to formal legal claims — to recover what they are owed.
Understanding the Legal Deadline
Under Section 19 of the Employment Act 1955, employers must pay wages no later than the 7th day after the end of each wage period. This applies to your basic salary, overtime, commissions, and any agreed allowances. Failure to comply is a direct breach of the law and can result in legal action.
Although the Act’s core protections apply to employees earning RM 5,000 or less per month, those earning above that amount can still take action under the Industrial Relations Act, which covers most employees under its definition of “workman.”
First Steps: Check and Confirm
Before taking legal action, ensure there isn’t a legitimate delay, such as a banking error or administrative issue. Contact HR or your manager for clarification. If no resolution is found, start gathering evidence — including your employment contract, payslips, bank statements, and any written communication about payment delays. Keep records of EPF and SOCSO contributions, as missing contributions are also a breach.
Making a Formal Complaint
If informal discussions don’t work, the next step is to approach the Labour Department (Jabatan Tenaga Kerja, JTK). You can lodge a complaint in person, via email, or through their online system. Prepare a sworn statement along with supporting documents. The department will arrange mediation between you and your employer, and if no settlement is reached, your case may proceed to the Labour Court.
If your salary exceeds the Employment Act limit, you can still bring the matter to the Industrial Relations Department, which handles disputes for most categories of employees.
When the Employer Is Insolvent
If the company is winding up or insolvent, you can submit a Proof of Debt to the appointed liquidator. This allows you to claim unpaid wages, unused leave pay, and other benefits. However, recovery depends on the remaining company assets. The Director General of Insolvency will oversee and verify these claims before distribution.
Unpaid EPF Contributions
Salary issues often go hand in hand with unpaid EPF contributions. You can log in to your KWSP account to check if your employer has made the required payments. If not, lodge a report with EPF directly — they have enforcement powers, which may include legal proceedings or travel restrictions against the employer.
Summary Action
| Step | Action | Details |
|---|---|---|
| 1 | Verify Payment Deadline | Check if wages are paid within 7 days after the wage period ends, as required by law. |
| 2 | Gather Evidence | Collect your contract, payslips, bank statements, and any written communication with your employer. |
| 3 | Attempt Informal Resolution | Speak to HR or management to clarify the reason for the delay and try to resolve it internally. |
| 4 | File a Complaint with JTK | Submit your claim to the Labour Department (Jabatan Tenaga Kerja) with all supporting documents. |
| 5 | Escalate if Necessary | If unresolved, proceed to the Labour Court or Industrial Relations Department. |
| 6 | For Insolvent Employers | File a Proof of Debt with the appointed liquidator to claim unpaid wages and benefits. |
| 7 | Report EPF Issues | Lodge a complaint with KWSP if your EPF contributions have not been made. |
Frequently Asked Questions (FAQ)
1. How many days does my employer have to pay my salary?
Under Section 19 of the Employment Act 1955, employers must pay wages no later than the 7th day after the end of each wage period. This applies to your basic salary, overtime, commissions, and any agreed allowances.
2. I earn more than RM5,000 a month — am I still protected?
Yes. Although the Employment Act’s core protections apply to employees earning RM5,000 or less per month, those earning above that amount can still take action under the Industrial Relations Act, which covers most employees under its definition of “workman.”
3. Where do I lodge a formal complaint about unpaid salary?
You can lodge a complaint with the Labour Department (Jabatan Tenaga Kerja, JTK) in person, via email, or through their online system, with a sworn statement and supporting documents. The department will arrange mediation, and if no settlement is reached, the case may proceed to the Labour Court.
4. What can I do if my employer becomes insolvent before paying me?
You can submit a Proof of Debt to the appointed liquidator to claim unpaid wages, unused leave pay, and other benefits, though recovery depends on the remaining company assets. The Director General of Insolvency oversees and verifies these claims before distribution.
5. What if my employer also hasn’t been paying my EPF contributions?
You can log in to your KWSP account to check if your employer has made the required payments. If not, you can lodge a report with EPF directly, as they have enforcement powers which may include legal proceedings or travel restrictions against the employer.
Not Getting Paid What You’re Owed?
Fareez Shah & Partners assists employees across Malaysia in recovering unpaid wages and resolving employment disputes. We can help you with:
- Preparing and filing complaints with the Labour Department (JTK)
- Escalating unresolved claims to the Labour Court or Industrial Relations Department
- Filing a Proof of Debt against an insolvent employer
- Reporting unpaid EPF and SOCSO contributions
- General employment dispute advice and representation
Don’t let unpaid wages go unresolved. Get professional legal guidance today.