International Payday Rules – Even More Countries

Author:
Jacque Vilet – Vilet International

Last month’s article entitled “International Payday Rules from A to Z” was well-received by our readers.   Many of you requested the same information for some more countries.   This post is a follow-up, with even more countries!

As a reminder, we will focus on some basics:   legal rules affecting paydays and legal currency allowed for payment of wages.  These provisions are for local national staff, not expatriates. Everyone knows that the most important employee relations issue is to pay employees correctly and pay them on time.

Below is a table showing requirements for some additional countries that were requested by readers.

Country Payday Currency Comments
Australia (New South Wales which includes both Sydney and Melbourne) Employees covered under a written contract, paydays are stipulated in the contract. Employees under written contract are paid in whatever currency is stipulated in the contract. Although not a legal requirement, companies would likely insist on payment in Australian dollars (AUD) to keep payroll less complicated.
Brazil Payday frequency cannot be less than 1 month and must be paid by the 5th after the 1 month period. Salary must be paid in national currency of Brazilian Reais (R$ or BRL) N/A
Canada (Ontario which includes Toronto and Ottawa) Ontario law provides that an employer must have a regular recurring payday (does not specify the frequency).   However Canada federal law states that the payday is established by the employer giving some latitude on regular timing. Currency is not specified, however, most employers pay in Canadian dollars (CAD). Salary may be paid in the form of cash, check or direct bank deposit.
Czech Republic Payment is required within 30 days of the regular payday.  Regular payday is left to the discretion of the employer but is commonly once per month (unless stipulated otherwise in a collective bargaining agreement). Currency must be in Czech Republic Koruny (CZK) Employee may be paid in cash, check or by direct deposit.
India Payments must be made once per month or shorter. Currency must be in India Rupees (INR) Depending upon the state, wages must be paid no later than either the 7th or 10th day following the end of the pay period.   Pay must be made in cash unless employee agrees to check or direct deposit
Malaysia Wages to be paid to each employee monthly unless specified in the employment contract. Payment should take place no later than the 7th day following the end of the month pay period Currency is Malaysian Ringgits ( MYR) N/A
Philippines Wages must be paid at least every two weeks or twice per month not to exceed 16 days. Currency is Philippines Pesos (PHP) Payment may be made in cash, check, money order or (if agreed to by the employee) by direct deposit.
United Arab Emirates (UAE) Wages must be paid on a monthly basis if hired on a monthly or annual basis.   All other employees must be paid on once every two weeks. Currency is UAE Dirham Employers registered by the Labor Department must make payments through the Wage Protection System (WPS).   Employers select among institutions designated by the WPS through which all wages to employees will be paid.  The institution in turn will pay employees directly.

Important Note:  This posting is intended to provide a brief overview of  payroll practices around the world.     Please check with your local, in-country payroll providers to ensure this information is up-to-date with the latest laws.

Source: Natlex Data Base (International Labour Organization)

For a copy of the information in both of my posts in Excel format, click here.

More About Jacque: