Human Resources Minister V. Sivakumar said under Sections 25 and 25(A) of the Labor Act 1955 (Act 265), employers are required to pay their employees’ salaries by bank transfer, and failure to do so would be a contravention of the Act and subject to a fine of up to RM50,000.
In case of cash payment, employers are not allowed to pay wages in cash unless approved by the employee and the Director General of the Peninsular Labour Department to avoid manipulation.
A Total Of 19 Employers Paid Wages In Cash
Sivaguma said a total of 34 employers were inspected, of which 19 paid wages in cash. Other violations included violation of working hours and non-compliance with the Minimum Wage Ordinance.
Sivagumar also revealed that from January to October, the Ministry of Labor had investigated a total of 1,654 cases of wage payment, workers’ accommodation and minimum wage violations, resulting in fines totaling more than RM4.3 million.