Malaysia legislation

Section 18

of EMPLOYMENT ACT 1955

Section 18

(2)

If in any contract of service no wage period is specified the wage period shall for the purposes of the contract be deemed to be one month.

WJW23/0686 Act 265.indd 27 04/10/2023 5:25 PM

Act 265

Calculation of wages for incomplete month’s work 18a. Notwithstanding section 60i, an employee who is employed on a monthly rate of pay and has not completed a whole month of service—

(a)

where he commenced employment after the first day of the month;

(b)

where his employment was terminated before the end of the month;

(c)

where he took leave of absence without pay for one or more days of the month; or

(d)

where he took leave of absence by reason of having been called up for national service under the National

Service Act 1952 [Act 425], to present himself for national service training as required under the National

Service Training Act 2003 [Act 628] or to comply with any other written law relating to national service, shall be paid wages due to him for that month calculated according to the following formula:

Monthly wages

X

Number of days eligible in the wage period.

Number of days of the particular wage period

Time of payment of wages