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Can you calculate this simple salary calculation correctly?

More than 50% will get this wrong!

 
While developing and supporting Actpay over the past 7 years we have came across some common errors faced by many payroll admin.
 
Calculation based on monthly rated worker, Normal OT (1.5), Work on one Sunday for 6 hours and January salary.
 
Want to double-check if your payroll calculations are correct? Here’s a simple test. Calculate Netpay, EPF and SOCSO based on EA and 9% EPF. See if you can get the correct answer. 
 
 
Answer is :
Netpay = 5,887.77
Employer EPF = 794.00
Employer SOCSO = 30.65
 
Parameters : Monthly rated worker, Normal OT (1.5), Work on one Sunday for 6 hours and August salary.
 
Answer is : 

Basis of calculation.

Overtime Calculation 

Attendance Allowance = Wages for work done.
Travelling Allowance : Exempted from Overtime, EPF and SOCSO
 
Overtime rate = ( Basic Salary + Other wages  ) / 26 / 8 = (1500 +160) / 26 / 8 = 7.981
 
Overtime for 10 hours at 1.5 rate = 7.981 x 1.5 x 10 = 119.72
 
Rest Day for overtime = ( Basic Salary + Other wages  ) / 26 = (1500 +160) / 26  = 63.85
 
No pay leave deduction = Wages / No. of days in month = 1660 / 31 = 53.55
 

SOCSO calculation

Wages = Basic – No pay leave + Overtime + Allowance = 1500 – 53.55 + 119.72 + 63.85 + 160 = 1790.02

Employer SOCSO for 1790.02 = 30.65

EPF Calculation

Wages = Basic – No pay leave + Allowance + Bonus = 1500 -53.55 + 160 + 4500 = 6106.45

Employer EPF rate for Salary below 5000 is 13% and above 5000 is 12%.

But bonus is treated differently for EPF. If Basic salary is below 5000 and the total amount with bonus is over 5000, Employer EPF is calculated based on 13% not 12%

EPF for Basic + Bonus = 6106.45 x 13% = 793.83

EPF for Basic + Bonus =  794 (Rounded to the next ringgit)

Netpay = 6503.57 – 550 -8.75 -3.50 – 53.55 = 5,887.77

 

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