Turn a bonus target in months of salary and your KPI score into the cash you actually take home.
Bonus you take home
RM 9,280.00
From a RM 12,000.00 bonus, 22.67% goes to tax and EPF
Bonus you take home: RM 9,280.00
Bonuses are wages for EPF and are taxed at your marginal rate in the month paid. Assumes a single, resident employee under 60. The EPF share is still your money, in your retirement account.
RM6,000 salary, 2-month target, 100% KPI
RM1,400 tax and RM1,320 to your EPF.
Take home RM9,280 of RM12,000
Same, 80% KPI
RM1,056 tax and RM1,056 to EPF.
Take home RM7,488 of RM9,600
How the figures above are worked out — the rules, rates and reasoning behind every line.
Many employers set bonuses as a number of months' salary, scaled by KPI achievement. Enter your target and expected score to see the gross bonus.
A bonus counts as wages for EPF, so 11% goes to your EPF account, and it is taxed through PCB at your marginal rate. What is left is your cash bonus.
Budget on your basic salary and treat the bonus as a windfall, because performance bonuses aren't guaranteed.
The EPF part of your bonus is still yours, in your retirement account.
To see the tax on a fixed bonus amount, use the Bonus Tax calculator.
The bonus is added on top of your yearly income, so it is taxed at your highest bracket, while your salary fills the lower brackets first.
Only if your contract says so, such as a contractual 13th month. Performance bonuses depend on your employer's policy and results.
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