Employment Act 1968 · 2020 Revised Edition · Part 3 · Payment of Salary
33. Priority of salary to other debts
Feedback & supportLast amended by an amending law of 2018. 2 amendments in all.
This section applies —
to workmen who are in receipt of a salary not exceeding $4,500 a month (excluding overtime payments, bonus payments, annual wage supplements, productivity incentive payments and any allowance however described) or such other amount as the Minister may prescribe; and
to every employee (other than a workman or a person employed in a managerial or an executive position) who receives a salary not exceeding $2,600 a month (excluding any overtime payment, bonus payment, annual wage supplement, productivity incentive payment and any allowance however described) or such other amount as the Minister may prescribe.
When, on the application of a person holding a mortgage, charge or lien or of a person who has obtained a judgment or decree, the property of an employer is sold, or any money due to the employer is garnished, the court ordering the sale or garnishment must not distribute the proceeds of the sale or the money to the person entitled thereto unless the court has ascertained and paid the salary due to all the employees employed by that employer and to all employees engaged by a contractor or subcontractor and working for that employer.
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;
This section applies only —
to property on which those employees were or are working;
where the property sold was or is the produce of the work of those employees;
where the property sold is movable property used or being used by those employees in the course of their work; or
to money due to the employer in respect of work done by those employees.
The amount payable to each such employee under subsection (2) must not exceed 5 months’ salary.
employee
“employee” means a person who has entered into or works under a contract of service with an employer and includes a workman, and any officer or employee of the Government included in a category, class or description of such officers or employees declared by the President to be employees for the purposes of this Act or any provision thereof, but does not include any of the following:(a)any seafarer;(b)any domestic worker;(c) (d)any person belonging to any other class of persons whom the Minister may, by notification in the Gazette, declare not to be employees for the purposes of this Act;
[Deleted by Act 21 of 2016]
[Deleted by Act 21 of 2016]
In this section, “employees” is deemed to include subcontractors for labour and “salary” is deemed to include money due to a subcontractor for labour.
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;