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In forceUpdated to 1 Aug 2023

Part V · System of Payment of Wages

25. Wages to be paid through financial institution

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In plain English

All wages earned by an employee, less lawful deductions, must be paid into an account at a financial institution. The account must be in the employee's name, or held jointly with other people as the employee chooses.

Summary · Drafted with AI, checked against the official text on 30 Sep 2026.

(1)

The entire amount of wages earned by, or payable to, any employee in respect of any work done by him less any lawful deductions, shall be actually paid to him through payment into an account opened by a financial institution, being an account in the name of the employee or an account in the name of the employee jointly with one or more other persons as stipulated by the employee.

(2)

Every employee shall be entitled to recover in the courts so much of his wages, exclusive of sums lawfully deducted under

Part IV, as shall not have been actually paid to him in accordance with subsection (1).

(3)

For the purposes of this Part, “financial institution includes—

(a)

a licensed bank and an approved issuer of a designated payment instrument under the Financial Services

Act 2013 [Act 758];

(b)

a licensed Islamic bank and an approved issuer of a designated Islamic payment instrument under the Islamic

Financial Services Act 2013 [Act 759]; and

(c)

a prescribed institution under the Development Financial

Institutions Act 2002 [Act 618].

Employment 35

(4)

The Minister may, by order, specify any approved issuer of a designated payment instrument or any approved issuer of a designated Islamic payment instrument under paragraphs 3(a) and

(b)

to be a recognized approved issuer of a designated payment instrument or approved issuer of a designated Islamic payment instrument for the purpose of payment of wages under this Part.

Payment of wages other than through financial institution 25a.  (1)  Notwithstanding subsection 25(1), an employer may, upon a written request of the employee, and subject to subsection (2), make payment of his employee’s wages—

(a)

in legal tender; or

(b)

by cheque made payable to or to the order of the employee.

(2)

The employer shall, upon the written request of his employee under subsection (1), obtain approval from the Director General for the payment of wages to be paid in legal tender or by cheque.

(2a)

The Director General may impose any condition as he may deem fit on the approval granted under subsection (2).

(3)

The request by the employee under subsection (1) may be withdrawn by the employee at any time, by notice in writing, to the employer.

(4)

The notice referred to in subsection (3) shall take effect at, but not before, the end of the period of four weeks beginning with the day on which the notice is given.

(5)

The request of the employee to the mode of payment of wages under subsection (1) shall not be unreasonably withheld by the employer upon obtaining the approval under subsection (2).

(6)

Any dispute arising out of the request by the employee under subsection (1) shall be referred to the Director General whose decision on the matter shall be final.

(7)

Section 69 shall not apply in respect of any dispute under subsection (6).

Report

Part VI

Priority of Wages

Part VII

Principals, Contractors, Sub-Contractors and Contractors for Labour

Part III

Part III.

Part VIII

Part IX

Pregnancy and Maternity

Part X

Part XI

Domestic Employees

Part XII

Rest Days, Hours of Work, Holidays and Other Conditions of Service

Part XIIC

Part XIII

Registers, Returns and Notice Boards

Part XIV

Inspection

Part XV

Complaints and Inquiries

Part XVI

Procedure

Part XVII

Part XVIII

Regulations

Part XIX

Repeal and Saving

Schedules