Salary Schedule (Jadual Gaji) in Malaysia: When to Pay & Pay Dates

Many business owners don’t realise how quickly salary mismanagement can snowball into bigger problems: unhappy staff, high turnover, even penalties. 

A proper salary schedule (jadual gaji) can fix a lot of that. Here’s how Malaysian employers can structure, plan, and stay on top of payroll.

What is a Salary Schedule (Jadual Gaji)?

A salary schedule maps out on how, when, and how much employees are paid consistently.

Having a salary schedule helps maintain payroll accuracy, avoid payment delays, and support budgeting efforts.

On employees POV, it brings peace of mind, especially when dealing with financial obligations.

Salary Structures in Malaysia

Some companies offer fixed salaries, where employees receive the same monthly pay regardless of hours worked.

Others work on an hourly wage system, which is more common in hospitality, retail, or part-time setups.

Then there's the difference between basic salary, gross salary, and net salary:

• Basic salary is the core amount agreed upon before any additions or deductions.

• Gross salary includes the basic salary plus any allowances or bonuses.

• Net salary is what reaches the employee’s bank account after statutory deductions.

Speaking of additions, most companies offer salary increments either annually or based on performance and some include bonuses during festive seasons or year-end periods.

In the public sector, salary structures follow fixed scales and grades.

Meanwhile, in the private sector, employers often use benchmarking and market rates to design their pay structures.

When to Pay Employees? Salary Payment Frequency & Cycles

According to the Employment Act 1955, salaries must be paid within 7 days after the last day of the wage period. That wage period is usually a calendar month.

Let’s say the salary period ends on the 31st. The employer must complete payment by the 7th of the next month.

Overtime salary must be paid by the end of the following wage period.

Other types of salary cycles like bi-weekly or weekly do exist, especially in sectors like construction or hospitality.

But these need to be clearly stated in employment contracts.

What happens when salary day falls on a public holiday or weekend?

Employers usually move the payment date earlier, often the last working day before the holiday.

For example, in 2025, government employees received their January salary earlier due to Chinese New Year.

For public sector employers, these schedules are fixed and published each year.

Private sector employers should prepare ahead and avoid waiting until the last minute, especially if the bank processing date could affect when employees receive their pay.

Minimum Wage, Overtime, and Deduction in Malaysia

As of the latest Minimum Wage Order, the base wage is RM1,500 for most employees. This applies across the board, except for domestic workers.

When employees work extra hours (overtime), it must be calculated based on legal rates.

The rate depends on whether the overtime falls on regular days, rest days, or public holidays.

There are mandatory deductions that employers are required to make:

• EPF (Employees Provident Fund)

• SOCSO (Social Security Organisation)

• PCB (Potongan Cukai Berjadual / Monthly Tax Deduction)

• EIS (Employment Insurance System)

Each of these serves a purpose: retirement, social protection, unemployment support, and taxes.

Employers are also required to issue payslips, clearly showing these deductions and all salary components.

This helps employees understand their compensation and builds transparency.

Public Sector Salary Schedule (Jadual Gaji Penjawat Awam)

Penjawat awam salary schedule follows a yearly plan. For 2025, government employees are paid once a month, often adjusted to match major holidays. 

For example:

• January salary was paid on 22 January due to Chinese New Year.

• May salary was paid early on 22 June, as the Kaamatan Festival is near.

The salary grades for civil servants range from Gred 11 to Gred 54, each with its own scale and increment path under the Skim Saraan Malaysia (SSM) system.

Now, what’s exciting in 2025? The government is introducing a salary adjustment (pelarasan gaji) as part of the Sistem Saraan Perkhidmatan Awam (SSPA).

Starting 1 December 2024, Pelaksana and Pengurusan dan Profesional employees will get an 8% raise. Kumpulan Pengurusan Tertinggi will receive a 4% increase.

Another raise comes in January 2026 — 7% and 3%, respectively.

For example:

• A Prebet (Askar) earning RM2,379 in November 2024 will receive RM2,619 in December 2024.

• By 2026, this rises to RM2,857.63.

This structured increase supports long-term financial planning for both the employer and the employee.

Private Sector Salary Schedule & Market Rates 2025

In Malaysia, most private companies pay salaries once a month, typically at the end of the month (e.g., on the 25th to 30th).

According to the Malaysian Employment Act 1955, salary must be paid no later than the 7th of the following month.

Some companies also follow mid-month allowances or advance schedules, especially in large organizations.

Salaries in the Malaysian private sector vary based on industry, location, experience, and education level.

Major urban areas like Kuala Lumpur, Petaling Jaya, and Penang generally offer higher salaries due to the cost of living and demand for talent.

Average Monthly Salary by Job Level (MYR)

Popular Industries & Market Rates in 2025

Allowances & Bonuses (Typical Add-ons)

• Transport Allowance: RM 150 – RM 500/month

• Mobile/Communication: RM 100 – RM 300/month

• Performance Bonus: 1 – 3 months’ salary (depending on company performance)

• Medical & Insurance: Private health insurance often provided

• Housing (for expatriates): RM 2,000 – RM 5,000/month

To explore salary ranges by role and location, you can use AJobThing salary comparison tools to know how much salary you offer for specific roles in certain location in Malaysia compared to other companies.

FAQ

What is the salary payment deadline in Malaysia?

Employers must pay employees within 7 days after the end of the wage period.

How often should employers pay salaries?

The common practice is monthly, though some industries use weekly or bi-weekly cycles.

What happens if an employer delays salary payments?

Late payments may lead to employee dissatisfaction, complaints to the Labour Department, and legal consequences under the Employment Act 1955.

What deductions are mandatory for employees in Malaysia?

EPF, SOCSO, EIS, and PCB (income tax) are all statutory deductions employers must make.

How do salary schedules differ in the government vs. the private sectors?

Government salaries follow a fixed national schedule and structured grades. Private sector salaries are more flexible but should follow clear internal policies and legal requirements.

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