According to information from the Ministry of Human Resources of Malaysia, employers are encouraged to pay their employees’ salaries through bank transfers. Employers who use cash to pay their employees’ salaries may be dealt with under the Employment Act 1955.
Paying employees’ salaries via bank transfer is safe for both employers and employees.
If an employer wants to pay employees’ salaries in cash, the employer must first obtain the employee’s consent, and then obtain approval from the Director of Manpower in Peninsular Malaysia.
In the relationship between an employer and an employee, ensuring compliance with regulations is essential. According to Malaysia’s Ministry of Human Resources, it is legally required to encourage salary payments to be made via bank transfers. These issues are governed by the Employment Act of 1955, and employers who use cash risk penalties. Choosing bank transfers simplifies financial transactions and record-keeping while improving security for all involved.
For those thinking about making cash payments, a careful procedure is required. Employee consent must come first, and then official approval from Peninsular Malaysia’s Director of Manpower. This highlights how crucial it is for payroll management to be transparent and follow legal requirements.
In the relationship between an employer and an employee, ensuring compliance with regulations is essential. According to Malaysia’s Ministry of Human Resources, it is legally required to encourage salary payments to be made via bank transfers. These issues are governed by the Employment Act of 1955, and employers who use cash risk penalties. Choosing bank transfers simplifies financial transactions and record-keeping while improving security for all involved.
For those thinking about making cash payments, a careful procedure is required. Employee consent must come first, and then official approval from Peninsular Malaysia’s Director of Manpower. This highlights how crucial it is for payroll management to be transparent and follow legal requirements.
