What to Do When Your Employer Doesn’t Pay Your Salary in Malaysia

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

StepActionDetails
1Verify Payment DeadlineCheck if wages are paid within 7 days after the wage period ends, as required by law.
2Gather EvidenceCollect your contract, payslips, bank statements, and any written communication with your employer.
3Attempt Informal ResolutionSpeak to HR or management to clarify the reason for the delay and try to resolve it internally.
4File a Complaint with JTKSubmit your claim to the Labour Department (Jabatan Tenaga Kerja) with all supporting documents.
5Escalate if NecessaryIf unresolved, proceed to the Labour Court or Industrial Relations Department.
6For Insolvent EmployersFile a Proof of Debt with the appointed liquidator to claim unpaid wages and benefits.
7Report EPF IssuesLodge a complaint with KWSP if your EPF contributions have not been made.

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