Workmen'S Compensation Act 1952 · Updated to 22 Jul 1982 · Part II · Workmen’S Compensation for Injury
9. Method of calculating earnings
Feedback & supportFor the purposes of this Act the earnings of a workman shall be computed in such manner as is best calculated to give his true monthly earnings at the date of the accident, subject to the following provisions:
workman
“workman”, subject to the proviso to this subsection, means any person who has, either before or after the commencement of this Act, entered into or works under a contract of service or of apprenticeship with an employer, whether by way of manual labour or otherwise, whether the contract is expressed or implied or is oral or in writing, whether the remuneration is calculated by time or by work done and whether by the day, week, month or any longer period: Provided that the following persons are excepted from the definition of “workman”— (a) any person employed otherwise than by way of manual labour whose earnings, calculated in accordance with section 9, exceed five hundred ringgit a month; (b) a person whose employment is of casual nature and who is employed otherwise than for the purposes of the employer’s trade or business, not being a person employed for the purposes of any game or recreation and engaged or paid through a club; (c) a domestic servant; (d) any person who is a member of the armed forces or of any visiting force lawfully present in Malaysia; (e) any person in the civil employment of Her Britannic Majesty’s Government in the United Kingdom, or in any other country of the Commonwealth whose contract of service was not made in Malaysia nor in Singapore; (f) a person employed, or selected for employment, in a civil capacity by the Government of Malaysia or by the Government of any State or by any local authority before 1 April 1953 in the application of this Act in Peninsular Malaysia, and before 1 January 1957 in the application of this Act in Sarawak where, in consequence of injury received by any such person in the discharge of his duties, a pension, gratuity or other allowance which would not be payable if such injury were received otherwise is paid to him or, in the case of his death, to any of his dependants as defined in this Act under any written law for the time being in force in Malaysia or any part thereof providing for the grant of such pension, gratuity or other allowance (this paragraph shall not apply in Sabah); (g) any police officer, and any other person engaged to perform police duties in accordance with the provisions of any written law while so performing such duties; (h) an out-worker; (i) a tributer; (j) any member of the family of the employer who dwells with him in his house; *(k) any class of persons whom the Minister may declare not to be workmen for the purposes of this Act. *NOTE—see P.U.…
where the workman has been exclusively employed by the employer who is liable to pay compensation during a continuous period of not less than six months immediately preceding the accident in the grade in which he was employed at the time of the accident, his monthly earnings shall be deemed to be the average amount of his earnings during the last six completed months of that period;
where the workman has been exclusively employed by the employer who is liable to pay compensation in the grade in which he was employed at the time of the accident during a continuous period of less than six months immediately preceding the accident and there is another workman who has been exclusively employed on similar work by the same employer for a continuous period of not less than six months immediately preceding the accident, the monthly earnings of the former workman shall be deemed to be the average amount of the earnings of the latter workman during the last six completed months of that period;
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where reliable evidence of the earnings of the relevant workman under paragraph (a) or (b) does not exist or cannot be adduced without undue delay or expense, regard may be had to evidence of the earnings of workmen employed on similar work in the same locality at or about the date of the accident;
where the earnings of a workman cannot be determined according to the provisions of paragraph (a), (b) or (c)
or where the earnings of a workman have been determined according to the provisions of paragraph (a), (b) or (c)
and are less than one hundred and twenty-six ringgit a month, then the earnings of the workman shall be deemed to be one hundred and twenty-six ringgit a month.
Where a workman is employed in the same occupation under contracts of service with two or more employers under which he worked at one time for one such employer and at another time for another such employer, his monthly earnings shall be computed as if his earnings under all such contracts were earnings in the employment of the employer for whom he was working at the time of the accident.
employer
“employer” includes the Government of Malaysia and the Governments of each of the States; in respect of civilian employees engaged in Malaysia or in Singapore of any visiting force lawfully present in Malaysia or of any person in the civil employment of the Government of any Commonwealth country, whose contract of service was made in Malaysia or in Singapore, the Government of that Commonwealth country; any local authority; any person or body of persons whether statutory or incorporated or not; the legal personal representative of a deceased employer; and in relation to a person employed for the purpose of any game or recreation and engaged or paid through a club, the manager or members of the managing committee of the said club: Provided that where the services of a workman are temporarily lent or let on hire to another person by the person with whom the workman has entered into a contract of service or apprenticeship, the latter shall, for the purposes of this Act, be deemed to continue to be the employer of the workman whilst he is working for that other person;
For the purposes of this section a period of service shall be deemed to be continuous which has not been interrupted by a period of absence from work exceeding fourteen days.
Subsections (1) and (2) shall apply to the calculation of monthly earnings for the purposes of the definition of “workman”
in section 2.