Types of Compensation in Malaysia

Did you know that there are 2 types of compensation in Malaysia?

- Wages

- Salary

In a nutshell, salary is the term used for employees that are paid on a fixed term, ie. monthly or bi-monthly. Wages is the term used for reward based on work done, usually calculated based on hourly rates, an example would be when companies hire freelancers or contract workers.

Salary has to be paid before the 7th of the following month.

Wages are usually paid once work has been completed.


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