How to calculate EPF bonus if Employee's wages less than 5k but bonus & wages more than 5k?

Created by QNE Software Sdn bhd, Modified on Thu, 28 Jan, 2021 at 6:28 PM by QNE Software Sdn bhd

Scenario: Example the employee Salary is RM 2,800, and the bonus on January is RM 5,300, how to calculate the EPF in Bonus?
Note: Example is taken for EPF 11%

According to the EPF table as below, those employee’s salary is less than RM 5,000 but bonus time if the wages and bonus is more than RM5,000, the employer side should contribute as 13%

https://www.kwsp.gov.my/documents/20126/927226/BI-Jadual+Ketiga+.pdf      

 


Solution: 

1. We should generate 2nd half payroll before generating BONUS

Basic RM 2800 which is based on 'er 13%  'ee 11%


 —> Refer to the EPF Table range (From 2,800.01 to 2,820.00) Employer 364.00  Employee 308.00

 


2. After completed 2nd Half Payroll, generate BONUS.  

Update the employee and bonus amount as RM 5,210


3. Go to Generate Payroll for BONUS. 

Notice that the EPF’er is showing as RM 689.  Try to calculate (RM  689 / RM 5,210) X 100 = 13%



Computation:-

Note: When received a bonus of RM 5,210, we should maintain to calculate the EPF base on 13% because total wage RM2,800 + RM 5,210 is more than RM5,000

 If basic wages more than RM 5,000 is computing with 12%

 

Hence, Bonus EPF calculation will be (RM 2800 + RM 5,210) = RM 8,010

 

RM 8,010 will fall on range From 8,000.01 to 8,100.00, 

If you refer to the table, it is referring as 12%
 

 

So, we manual calculate but base on RM 8,100 [Calculation based on Contribution Rate (Third Schedule)]
instead of RM8,010 [Calculation based on exact percentage] 

 


RM 8100 x 13% = RM 1,053.
 

Bonus EPF for Employer —> RM 1053-RM364 = RM 689 [RM364 paid in 2nd Half]
 

Bonus EPF for Employee ---> RM 891 - RM 308 [RM308 paid in 2nd Half] = RM 583
 

 

 

    Kindly refer attachment for details. 





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