Malaysian business licence·Federal
Wage Advance Permit (WAP)
Issued by Jabatan Tenaga Kerja Semenanjung MalaysiaEmployment Act 1955
Overview
The Wage Advance Permit (WAP) allows employers to provide salary advances to employees, not exceeding one month's salary, without charging interest. This permit ensures that repayments are made reasonably and in installments. It is essential for employers who wish to support their employees financially.
Key details
Governing Act
Employment Act 1955
Agency fees
No fee and no validity period until revoked by the Director General.
Validity
Annual renewal typical
Issuing authority
Jabatan Tenaga Kerja Semenanjung Malaysia
Fees shown are government / local-authority fees payable to the issuing agency. Emerhub charges a separate service fee for handling the application end-to-end.
Eligible applicants
Businesses, companies, limited liability partnerships, and professional bodies.
Application requirements
- Employers can advance salaries exceeding one month for employee benefit under certain conditions.
- The maximum advance is subject to a total deduction of the employee's salary not exceeding 50% of monthly income or 75% for housing loan advances.
- Repayment period for advances, other than housing or vehicle loans, must not exceed 18 months.
- No interest can be charged on the advance.
- The advance must be based on a written request from the employee.