Subject: Employer Fined RM5,000 for Paying Wages in Cash (YYC Newsletter 17/05/2019)

According to the Employment Act 1955,
Employers are required to pay employee wages through bank transfers,
to pay wages in cash or by cheque, employers must apply to the Labour Department and attach a written request letter from employees.
(Bonus! +Free download of sample letter)


YYC Newsletter 17/05/2019
View this email online if it doesn't display correctly
In the news

A business owner of a hardware store received a notice of RM5,000 fines for paying his employees’ wages in cash, the fines were reduced to RM1,500 after an appeal is made. Meanwhile, actions were also taken on several shops nearby. 


What does the law says? 
What must employers do if want to make payment of wages in cash or by cheque?

An employer must apply to the Labour Department and submit with a written request letter from employees, proving that request made is based on the intention of the employee.


Must indicate in the letter the following:
  • the employer's name and address 
  • employee's name and address, 
  • employee's IC number,
  • in the signatory column, employee to fill in his name and sign;
  • and indicate that the employee himself requires the employer to pay wages in cash/ by cheque.
  • 雇主名字与地址资料
  • 员工名字与地址,
  • 员工身份证号码,
  • 然后员工需在签字栏填写其名字及签名,
  • 并说明是员工本身要求雇主以现金或支票支付工资。
Sample Letter

Watch out for the PENALTIES for non-compliance
For infringement notice or bill issued by an enforcement officer of the Labour Department, employers can be fined up to RM5,000.
若由劳工局执法官员开出罚单,罚单最高则不超过5000 令吉。

Source (资料源自):

YYC is a proud recipient of the Malaysian Brand.
YYC Group
Empowering business owners to grow their businesses for more than 45 years and still counting...
●GST Advisory  ●Audit & Assurance  ●Tax Advisory  ●Business Advisory ●Wealth Advisory
●Accounting & Bookkeeping  ●Company Incorporation  ●Payroll Outsourcing  CFO System ●Digital Marketing

HQ: No.32 & 34, Lorong Thambi 2, off Jalan Brunei, 55100 Kuala Lumpur.
Tel: +6019-368 6868 / +603-9078 2868
Email :
You're receiving this email because you have participated in a YYC event or have contacted a YYC personnel. You will receive updates on latest information related to Tax, Audit, Accounting and other areas affecting business growth in Malaysia. The newsletter is for information purpose only. The Information contained in the newsletter is believed to be reliable but none of the Company under YYC or their respective directors, employees, affiliates, advisers or representatives is held responsible for its completeness nor accuracy.

Copyright © 2019 YYC All rights reserved.