Permits and rights

Maid Salary Deductions: What Is Allowed?

What the Employment Act permits an employer to deduct in Peninsular Malaysia and Labuan — and why the food deduction it appears to allow is prohibited by the standard FDH contract.

The short answer

Section 24 governs wage deductions and applies fully to a domestic employee, but only where the Act itself reaches — Peninsular Malaysia and Labuan, not Sabah or Sarawak. Some deductions need no extra paperwork, like correcting a genuine overpayment from the prior three months. Deducting for rental or accommodation the employer provides is a separate tier: it needs both the employee’s written request and the Director General’s prior written permission. Food is different again. The Act’s own mechanism would, in principle, allow a food deduction through that same two-part process. But the standard JTKSM-published contract for hiring a foreign domestic helper goes further: it states plainly that deducting wages for food is prohibited outright, with no exception. Follow that stricter contract term, not the Act’s more permissive minimum.

At a glance

No extra paperwork needed
Overpayment correction, s.13(1) indemnityDeductions for a genuine overpayment made in the prior 3 months, or for the notice-in-lieu indemnity if she broke the contract without notice.
Needs her written request
Union/co-op duesNot typically relevant to a domestic-helper household, but part of the same statutory tier.
Needs written request AND DG approval
Accommodation, savings schemes, third-party paymentsThe DG will only permit an accommodation deduction if satisfied it benefits the employee — this is a tier most employers don’t expect exists.
Food deduction
Prohibited outright by the standard contractThe Act’s own s.24(4)(e) mechanism could in principle cover food; the JTKSM-published standard FDH contract states deducting wages for food is strictly prohibited, no exception.

The baseline rule and what needs no extra paperwork

Section 24(1) sets the baseline: no deduction is lawful except as this Act allows, and it applies only where the Act itself does — Peninsular Malaysia and Labuan, not Sabah or Sarawak, which run their own separate labour ordinances. Without needing the employee’s written request, an employer may deduct for a genuine overpayment made in the immediately preceding three months by the employer’s own mistake, or for the indemnity owed under s.13(1) if the employee broke the contract without proper notice.

A narrower tier needs the employee’s own written request specifically — payments to a registered trade union or co-operative thrift and loan society, or payments for shares in the employer’s business. These aren’t typically relevant to a domestic-helper household, but they sit in the same statutory structure as the tier that follows. (A separate s.24(2)(c) provision on recovering wage advances cross-references s.22, a section that itself doesn’t apply to a domestic employee — whether that specific deduction route is usable for her wages isn’t settled by the text alone.)

The tier that matters most: written request AND Director General approval

For accommodation the employer provides, deducting from her wages requires both the employee’s own written request and the Director General’s prior written permission — and the Act is explicit that the DG won’t grant that permission unless satisfied the arrangement is for the employee’s benefit. Simply deciding as the employer that housing is worth a set amount and deducting it isn’t, on this text, a lawful deduction without going through that process.

The same tier covers deductions for a superannuation scheme, provident fund, employer’s welfare scheme, or insurance scheme set up for the employee’s benefit, third-party payments made on her behalf, and purchases of the employer’s own business goods — all needing the same two-part authorisation, her written request and the DG’s written permission.

Why food is a separate, stricter case

The Act’s own s.24(4)(e) groups food together with accommodation as something that could, in principle, be deducted through the same written-request-plus-DG-approval process. But the standard service contract JTKSM publishes for hiring a foreign domestic helper doesn’t use that permissive route — it states directly that food must be provided at no cost to her, and that deducting wages for it is strictly prohibited, without the conditional language the Act itself uses. Where a specific, official contract term is stricter than what the general Act would technically permit, following the stricter term is the safer and correct standard to work to.

Total deductions under this section in any one month can’t exceed 50% of that month’s wages, with a housing-loan repayment able to push that up by a further 25%; the s.13(1) indemnity and final-settlement amounts that are lawfully owed aren’t capped at all. Anything not covered by one of these specific categories simply isn’t a lawful deduction under the Act — there’s no general "employer’s discretion" category to fall back on.

The rules and figures here follow official Malaysian sources as at the review date, and your own situation can differ. Check what applies to your own case with the Immigration Department of Malaysia for permits and passes, or the Department of Labour Peninsular Malaysia for agency licensing and employment terms, before you act on it.

Questions this page answers

Can I deduct for food I provide if she agrees in writing?

No. Even though the Act’s general deduction mechanism could in principle allow it, the standard JTKSM contract for hiring an FDH states deducting wages for food is strictly prohibited, with no written-consent exception.

Can I deduct for accommodation I provide without asking her first?

No. This deduction needs her own written request on record and the DG’s prior sign-off, and the DG only grants it if satisfied the arrangement benefits her.

What can I deduct without any extra paperwork?

Correcting a genuine overpayment made in the prior three months, and the s.13(1) indemnity if she broke the contract without proper notice — those two categories need no written request or DG approval.

Is there a limit on how much can be deducted in one month?

Yes — 50% of that month’s wages in total, with a housing-loan repayment able to add up to a further 25%. The s.13(1) indemnity and final-settlement deductions for owed amounts aren’t capped.

Does this deduction framework apply in Sabah and Sarawak too?

No — the Employment Act itself only reaches Peninsular Malaysia and Labuan. Sabah and Sarawak run their own separate labour ordinances, not verified here to match this same deduction structure.

Maid Salary Deductions: What Is Allowed?

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DomesticHelper editorial teamReviewed 14 August 2026Sourced from Malaysian government registriesIndependent of the hiring agenciesEditorial standards
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