In force2026 Revised Edition

Contents

Employment Act · 2026 Revised Edition · Part · Payment of Salaries

45. Authorised deductions

In plain English

Deductions may be made from an employee's salary for absence from work, income tax, and recovery of advances or loans. Deductions are also allowed for damage to or loss of goods expressly entrusted to the employee for custody, where the employee's neglect or default directly causes the damage or loss. The minister may approve other deductions.

Summary · Drafted with AI, checked against the official text on 30 Sep 2026.

(1)

The following deductions may be made from the salary of an employee —

(a)

deductions for absence from work;

(b)

deductions for damage to or loss of goods expressly entrusted to an employee for custody or for loss of money for which an employee is required to account, where the damage or loss is directly attributable to his neglect or default;

(c)

deductions for the actual cost of meals supplied by the employer at the request of the employee;

(d)

deductions for house accommodation supplied by the employer;

(e)

deductions for such amenities and services supplied by the employer as the Commissioner may authorise;

(f)

deductions for recovery of advances or loans or for adjustment of over-payments of salary;

(g)

deductions for income tax payable by the employee;

(h)

deductions of contributions payable by an employer on behalf of an employee under and in accordance with the provisions of the Employee Trust Act (Chapter 167);

(ha)

deductions of contributions payable by an employer on behalf of an employee under and in accordance with the provisions

Employment of the

Supplemental

Contributory

Pensions

Trust

Act

(Chapter 276);

(i)

deductions made at the request of the employee for the purpose of a superannuation scheme or provident fund or any other scheme which is lawfully established for the benefit of the employee and is approved by the Commissioner;

(j)

deductions made with the written consent of the employee and paid by the employer to any co-operative society registered under any written law in respect of subscriptions, entrance fees, instalments of loans, interest and other dues payable by the employee to such society; and

(k)

any other deductions which may be approved by the

Minister.

(2)

For the purposes of subsection (1)(e), “services” does not include the supply of tools and raw materials required for the purposes of employment.

Terms defined in s 2

Commissioner
Defined · s 2
“Commissioner” means the Commissioner of Labour appointed under section 3(1);
Open s 2
employee
Defined · s 2
“employee” means a person who has entered into or who works under a contract of service with an employer, and includes a workman and any public officer or employee of the Government included in a category, class or description of such officers or employees declared by the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, to be employees for the purposes of this Act or any Part thereof; but does not include any seaman, domestic worker or any person employed in a managerial, executive or confidential position or any person belonging to any other class of person whom the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, may by notification published in the Gazette, declare not to be employees for the purposes of this Act;
Open s 2
employer
Defined · s 2
“employer” means any person who employs another person under a contract of service and includes — (a) the Government, in respect of such categories, classes or descriptions of public officers or employees of the Government as are declared by the Minister, with the approval of His Majesty the Sultan and Yang Di-Pertuan, to be employees for the purposes of this Act; (b) any statutory body; (c) the duly authorised agent or manager of the employer; (d) the person who owns or is carrying on or for the time being responsible for the management of the profession, business, trade or work in which the employee is engaged;
Open s 2
Minister
Defined · s 2
“Minister” means the Minister of Home Affairs;
Open s 2
salary
Defined · s 2
“salary” means all remuneration including allowances payable to an employee in respect of work done under his contract of service, but does not include — (a) the value of any accommodation or the supply of any food, fuel, electricity, water or medical attendance, or of any amenity or service excluded by order of the Minister published in the Gazette; (b) any contribution paid by the employer on his own account to any pension fund or provident fund; (c) any travelling allowance or the value of any travelling concession; (d) any sum paid to the employee to reimburse him for special expenses incurred by him in the course of his employment; (e) any gratuity payable on discharge or retirement; and (f) any retrenchment benefit payable on retrenchment;
Open s 2

Report

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Part

General

Read on from Part

45. Authorised deductions

In plain English

Terms defined in s 2

Principals and Contractors

Truck System

Rest Days, Hours of Work, Holidays and Other Conditions of Service

Health, Accommodation and Medical Care

Part-Time Employees

Employment of Women

Employment of Children and Young Persons

Domestic Workers

Immigrant Employees

Repatriation

Inspection

Complaints and Inquiries

General

Schedules