What are the salary payment regulations in Malaysia?

In Malaysia, salary payments are typically made on a monthly basis. According to the law, employees must receive their salary by the 7th day of the following month. This ensures that employees are compensated promptly for their work in the preceding month.


At Horizons, we follow a slightly more employee-friendly policy by ensuring that salaries are paid by the last working day of the month, ahead of the legal deadline.


In addition, Malaysia does not mandate the payment of a 13th or 14th salary, commonly known as a "bonus" payment. 

However, it is a standard practice in some companies to offer a 13th-month bonus as part of their benefits package.


Regarding the calculation of salary, when determining a daily wage, it is typically calculated by dividing the monthly salary by 26. This standard division reflects the number of working days in a month, assuming a six-day workweek.


Overall, while some salary payment practices are legally regulated, additional benefits such as 13th-month bonuses or extra pay are not compulsory and depend on the company's policies.

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