Employment Act 1968 · 2020 Revised Edition · Part 5 · Truck System
54. Agreements to pay salary otherwise than in legal tender illegal
Feedback & supportThe salary of a workman must be payable in legal tender and not otherwise and if in any contract of service the whole or any part of the salary is made payable in any other manner the contract of service is illegal and void.
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;