Employment Act 1968 · 2020 Revised Edition · Part 3 · Payment of Salary
20. Fixation of salary period
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An employer may fix salary periods, which are the periods for which earned salary is payable. A salary period must not exceed one month. If no salary period is fixed, the salary period is treated as one month.
Summary · Drafted with AI, checked against the official text on 30 Sep 2026.
An employer may fix periods (called for the purpose of this Act salary periods) in respect of which salary earned is payable.
employer
“employer” means any person who employs another person under a contract of service and includes —(a)the Government in respect of such categories, classes or descriptions of officers or employees of the Government as are declared by the President to be employees for the purposes of this Act;(b)any statutory authority;(c)the duly authorised agent or manager of the employer; and(d)the person who owns or is carrying on or for the time being responsible for the management of the profession, business, trade or work in which the employee is engaged;
A salary period must not exceed one month.
salary
“salary” means all remuneration including allowances payable to an employee in respect of work done under his or her contract of service, but does not include —(a)the value of any house accommodation, supply of electricity, water, medical attendance, or other amenity, or of any service excluded by general or special order of the Minister published in the Gazette;(b)any contribution paid by the employer on his or her own account to any pension fund or provident fund;(c)any travelling allowance or the value of any travelling concession;(d)any sum paid to the employee to reimburse him or her for special expenses incurred by him or her in the course of his or her employment;(e)any gratuity payable on discharge or retirement; and(f)any retrenchment benefit payable on retrenchment;
In the absence of a salary period so fixed, the salary period is deemed to be one month.