When you work hard, you deserve to be paid. Simple.
Yet in Malaysia, unpaid salary cases are still one of the top complaints received by the Labour Department, even in 2025. Whether it’s late salary, partial payment, or no payment at all, many employees feel unsure about their rights and employers often underestimate the consequences.

This guide breaks down exactly what Malaysian workers (and employers) need to know in 2025.

1. What Malaysian Law Says About Salary Payment

Under the Employment Act 1955 (amended 2022), employers must:

• Pay salary no later than the 7th day after the end of the wage period

• Pay overtime, allowances, and commission as agreed in the contract

• Provide a payslip for every salary paid

Failure to do these is considered a breach of the law.

In 2025, the Ministry of Human Resources (MOHR) has repeatedly reminded companies that non-payment of salary is one of the most serious labour offences because it directly affects the livelihood of employees.

2. What Counts as “Unpaid Salary”?

Unpaid salary isn’t just completely unpaid wages. It includes:

✔️ Salary paid later than the 7th of the month
✔️ Salary paid partially
✔️ Missing overtime or allowances
✔️ Missing commissions that are already earned
✔️ End-of-contract payments not issued
✔️ Salary withheld as “punishment” (illegal)

If you worked — you must be paid. No exceptions.

3. What’s Happening in 2025: A Rise in Salary Complaints

According to early 2025 updates from the Labour Department (JTK):

• Salary-related complaints remain among the top 3 most reported cases

• Many complaints involve SMEs struggling with cashflow

• Some involve employers withholding pay after disputes or resignations

In January–April 2025, MOHR highlighted increased inspections on employers who delay or avoid salary payment, with enforcement actions being taken more aggressively.

This means employees have stronger backing — and employers must take the law seriously.

4. Penalties for Employers (2025 Update)

Under the Employment Act, employers who fail to pay salary can face:

• Fines up to RM50,000 per offence : If multiple employees are involved, the fine applies per employee.

• Court action for repeated offences : Repeat offenders may face heavier penalties.

• Mandatory payment of owed salary + interest

• Employer may be blacklisted from hiring foreign workers

A strong enforcement focus in 2025.

The government has made it clear:
“Cashflow issues” are not an excuse for unpaid wages.

5. What Employees Should Do If Salary Is Not Paid

Here’s the step-by-step:

Step 1: Talk to Your Employer First

Sometimes it’s a genuine oversight. Get the explanation in writing if possible.

Step 2: Document Everything

Keep copies of:

• Employment contract

• Payslips or bank statements

• WhatsApp/Email communication

• Timesheets or overtime records

Step 3: File a Claim With the Labour Department (JTK)

You can submit a complaint for unpaid wages at:

• Any JTK office

• Through JTKSM Online Complaint Portal

• Via Working for Workers (WFW) app

You generally have 60 days to file a salary claim.

Step 4: JTK Will Investigate

They will call both parties for an interview and request documents.

Step 5: Employer will be ordered to pay

If the employer is found guilty, they will be issued a directive to settle the unpaid amount.

6. What If You’re a Manager or Earning Above RM4,000?

Good news:
Since the 2022 amendments, most employees are now protected under the Employment Act regardless of salary.

This means you CAN still file a salary claim, even if you are:

• A manager

• A professional

• Earning above RM4,000

• A foreign worker

• Contract staff

There are still some exceptions (e.g., domestic workers, certain maritime roles), but most employees are now covered.

7. Can Employers Withhold Your Final Salary?

No! unless stated clearly in your contract.

Common illegal excuses:

• “You didn’t serve notice properly”

• “We are waiting for replacement staff”

• “We will release when finance approves”

Your notice period, handover, and final salary must follow your contract — not employer preference.

8. Tips for Protecting Yourself in 2025

✔️ Get everything in writing

Verbal promises disappear. Written ones don’t.

✔️ Always ask for payslips

It’s illegal for employers not to issue payslips.

✔️ Keep your own record of hours & OT

Especially if you work shifts.

✔️ Report early don’t wait months

The longer you wait, the harder it is to recover unpaid wages.

9. For Employers: How to Avoid Legal Trouble

2025 is a year of tightened HR enforcement. Employers should:

• Ensure payroll is processed before the 7th

• Update employee contracts to be compliant

• Keep accurate attendance and overtime records

• Avoid withholding pay over disputes

• Seek HR/legal advice if unsure

In short:
Good HR compliance is cheaper than fines.

Final Thoughts:

Unpaid salary is more than a legal issue it affects people’s lives, families, and financial stability. As Malaysia focuses on better labour standards in 2025, employees are more empowered than ever, and employers are held to higher accountability.

If you believe you’re not being paid fairly, you have the right to speak up and the law is on your side.