Importance of issuing a payslip in Malaysia

Every month organizations are required to distribute employee payslips as part of their legal obligations to their employees. Payslips are important to the employees for many reasons. Hence, the employer must ensure payslips are generated at the end of each pay cycle and distributed to the employees.

onthly payslips are important as they contain relevant information such as gross payment, chargeable expenses and bonuses that allows you to better understand your finances. With this in mind, payslips are essential records that should be kept.

As per the Malaysia Employee Act 1957, every employer shall furnish every employee employed by him in a separate statement or card the particulars relating to details of wages and other allowances earned during each wage period

The Benefits of a Salary slip in Malaysia for employers:

1. It is a record that the company has performed its obligations to the employees according to certain laws on employees’ rights.
2. It is a documentation of salary expenses or wages as the company’s expenditure.

The Benefits of a Salary slip in Malaysia for employees:

1. Serves as evidence in if there are any misconduct done by the company.
2. It is valid evidence for tax deduction and income tax information.
3. It is a referral for financial institutions or credit loan companies when considering the employee’s credibility and integrity during their application process.

For more information you may click on the Malaysia Employment Act link