Pay-slips also known as salary slips which are official records that employers present to their staff members. It includes a thorough analysis of the employee’s income and expenditures for a certain salary period which may be weekly or monthly.
Every employee on a payroll must received a copy of their pay-slip from the company. According to the Regulation 8(1) of the Malaysia Employment Act 1957, “…Every employer shall furnish to every employee employed by him on or before the date of his commencing employment and subsequently on any change in the terms and conditions of employment resulting in any change in his wages a certified copy of the particulars as specified in paragraph (b) of Regulation 5.”
The details of Regulation 5(b) are: –
(1) Name of employee and National Registration Identification Card No;
(2) Occupation or appointment;
(3) Wage rates (excluding other allowances);
(4) Other allowances payable and rates;
(5) Rates for overtime work;
(6) Other benefits (including approved amenity and service);
(7) Agreed normal hours of work per day;
(8) Agreed period of notice for termination of employment or wages in lieu;
(9) No. of days entitlement to holidays and annual leave with pay;
(10) Duration of wage period;
In other words, it means that it is mandates for each company provide each employee with a separate statement that include information on the salaries and other benefits earned during each pay period. Also, pay-slips are an official proof of an employee’s salary received from the company.
There are two primary reasons why the pay-slip is vital. Firstly, the pay-slips could assist them comprehend their taxes which paid to the government, and other required payments like income tax, Employee Provident Fund (EPF) contributions, employee insurance, etc. Secondly, it is significant because different financial organizations use pay-slips to determine if they are eligible to grant loans or issue credit cards.
Other than that, there are some advantages of a salary slip for employers in Malaysia which are it serves as proof that the business complied with its commitments to the workers under various labour regulations and as a record of the costs incurred by the firm for salaries or wages.
It is advised to have the following data on hand when creating pay-slips:
- Company Name
- Company Address
- Employee Name
- Employee Number
- Employee NRIC / Passport Number
- Employee EPF Number
- Employee SOCSO Number
- Employee Income Tax Number
- Salary Statement Month
- Employee Earnings/ Deduction section, comprises of
- Basic Pay
- Allowance, if any
- Deductions for EPF, SOCSO, Tax, EIS
- Employer Contribution section, comprises of
- EPF
- SOCSO
- EIS
- HRDF
- Calculations of Gross Pay, Gross Deductions, Gross Company Contributions and Net Pay amount.
