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Bonus vs Ang Pow

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“Is Bonus subject to EPF & SOCSO?”

“Is Bonus subject to PCB?”

“Is Ang Pow better than Bonus”

FAQ for Bonus & Ang Pow 

1. Is Bonus subject to EPF?

Yes, bonus is subject to EPF contribution of both employers and employees.

3. How to calculate MTD of Bonus?

You may use PCB calculator to calculate PCB.

(http://calcpcb.hasil.gov.my/)

4. What is the difference between Bonus & Ang Pow?

Bonus:

  • An extra reward to employees
  • Will be recorded in payroll
  • Subject to EPF & MTD

 

Ang Pow:

  • A gift of money (During festival)
  • Not considered as personal income
  • Not subject to EPF & MTD

5. As an employer, can I issue bonus in the form of Ang Pow?

We do not recommend you to do so as EPF authority might review to ensure the employees’ benefit are given.

6. As an employee, can I request my Bonus to be issued in the form of Ang Pow?

We do not recommend you to do so. If employer issued bonus, you could get extra 12%/13% EPF contribution from employers.

8. When to pay the EPF & MTD contribution of Bonus?

If your Bonus was issued in January, the EPF & MTD contribution should pay on the subsequence month (before February 15th).