For most foreign workers, two money questions matter every month: where does my salary go? and how do I send money home safely? Budget 2027, tabled on 9 October 2026, touches the first, and Bank Negara Malaysia provides a way to check the second. This article explains both in plain language.
As of 16 Oct 2026. This is general information, not legal advice. Implementation details of the Budget measure were not stated in the reports we checked.
Wages must be paid through a financial institution
According to the Department of Labour Peninsular Malaysia (JTKSM) explanation of the Employment Act 1955 amendment (sections 25 and 25A):
- Employers must pay wages through a financial institution as the default method.
- Payment in cash or by cheque is allowed only if the worker makes a written request and the Director General of JTKSM approves.
- Per JTKSM, the cash/cheque rule applies to employees other than domestic servants. Ask JTKSM if you are unsure which category you fall in.
In 2023 the then Human Resources Minister said employers who fail to comply can be fined up to RM50,000, according to Sinar Harian (22 Aug 2023). That is an older statement. JTKSM itself only says the general penalty for offences under the Act rose from RM10,000 to RM50,000 after the amendment, and names no specific fine for wage-payment breaches. Check JTKSM for the current position.
What this means for you: salary paid into a bank account in your name leaves a record. That record helps if there is a dispute over how much you were paid, and it makes sending money home legally easier.
What Budget 2027 announced
On 9 October 2026 Prime Minister Anwar Ibrahim announced that companies other than MSMEs (micro, small and medium enterprises) can claim tax deductions on salary expenses only if wages are paid through bank accounts permitted under the Employment Act 1955. This was reported by Malaysiakini and discussed in The Edge Malaysia (16 Oct 2026).
The reported aim is to make it harder to employ workers without permits by creating traceable wage records.
What is not clear: the reports we checked did not state an effective date. So do not assume your employer will change anything tomorrow. Watch what happens at your own workplace.
Sending money home: use a licensed provider
Bank Negara Malaysia (BNM) publishes a list of licensed Money Services Business (MSB) operators that you can search by company name, address or type of business, including remittance services. Check the company or agent there before you send money.
As an example of the risk, FMT (8 Feb 2025) reported that the Immigration Department, BNM and CyberSecurity Malaysia raided an unlicensed money transfer syndicate in Klang and Brickfields; RM3.6 million was seized and 10 foreigners were arrested. The service operated through grocery stores and eateries, mainly for Indonesian and Indian customers. The report advised using BNM-licensed providers.
Checklist before you send money
- Find the operator's name on the BNM list.
- Ask for a receipt and keep a photo of it plus the transaction reference.
- Ask the exchange rate and fees first, not after paying.
- Do not send money through a shop or person you cannot trace later.
- Be wary of an unbelievably cheap rate with no receipt.
Whether remittance through your own bank suits you better depends on the bank and the destination country; ask your bank.
What to do & who to call
| Situation | Action | |---|---| | Paid in cash or salary not in your account | Ask your employer why; ask for payment into your account; keep your payslip | | Salary late or short | See our wage complaint guide (JTK) | | Check a remittance provider | BNM list of licensed MSB operators | | You think you were scammed | BNMLINK 1300-88-5465 (the number BNM publishes in its scam notice) or the police | | Confusing payslip | Read payslip deductions: EPF, SOCSO, Lindung 24 Jam |
Common mistakes
- Accepting cash pay with no payslip. You have no proof of what you received.
- Using someone else's account to receive salary. If there is a problem it is hard to prove the money was yours.
- Sending money through an unlicensed contact because it feels easier or cheaper.
- Not keeping remittance receipts.
- Assuming everything in the Budget is already in force.
Related: overtime, public holidays and rest days, Guide for foreign workers renting a room in Senai and minimum wage and Budget 2027.
Looking for a room in Senai?
If you are looking for a worker room near your factory in Senai, see our current rooms and pricing or WhatsApp +60 12-708 8789 (https://wa.me/60127088789) to check availability.
FAQ
Must employers pay wages through a bank? According to JTKSM, the default is through a financial institution. Cash or cheque only with the worker's written request and the Director General of JTKSM's approval.
What changed in Budget 2027 about salary? Companies other than MSMEs can claim tax deductions on salary only if wages are paid through permitted bank accounts. The reports checked did not state an effective date.
How do I know a remittance provider is licensed? Search for the company or agent on the BNM list of licensed MSB operators.
Are all shops that send money licensed? No. An unlicensed syndicate was reported operating through grocery stores and eateries (FMT, Feb 2025). Check the BNM list.
Who do I contact if my salary is not paid? See our JTK wage complaint guide; keep payslips, messages and proof of work.
Can my employer pay me in cash? Only if you make a written request and the JTKSM Director General approves (per JTKSM). If you are pushed to accept cash, ask JTKSM.
Are small companies affected by the Budget 2027 measure? Per Malaysiakini, MSMEs are excluded from the salary tax-deduction condition; no effective date was given.
Who can I call about remittance or scams? BNMLINK 1-300-88-5465 (Mon-Fri, 9am-5pm) or the police if you think you were scammed.
Sumber / Sources
- JTKSM, Employment Act 1955 (Amendment) 2022 FAQ
- Sinar Harian, Majikan digesa patuh Akta Pekerja (22 Aug 2023)
- Malaysiakini, Anwar: Firms can claim salary tax deductions only for traceable wage payments (9 Oct 2026)
- The Edge Malaysia (16 Oct 2026)
- Bank Negara Malaysia, Licensed MSB Operators
- Free Malaysia Today, Illegal money transfer syndicate busted, RM3.6mil seized (8 Feb 2025)
- Bank Negara Malaysia, scam notice (BNMLINK 1300-88-5465)
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