Notice! It is illegal to pay employees in cash.
According to the Malaysian Ministry of Human Resources, employers are encouraged to pay their employees’ salaries via bank transfers. Employers who pay their employees in cash may face penalties under the Employment Act of 1955.
Employee salaries can be paid via bank transfer, which is secure for both employers and employees.
If an employer wishes to pay employees’ salaries in cash, the employer must first obtain the employee’s consent, and then obtain approval from Peninsular Malaysia’s Director of Manpower.