Some users who have been using Excel for their payroll calculations in the past have enquired on the Actpays EPF Bonus calculations.
The following example will show how EPF for bonus for calculation is not gross salary times rate. The following example will demonstrate the issue.
Examples of Bonus EPF Calculations
Employer EPF for RM4,000 salary – 4000 x 13% = RM520
Employer EPF for RM8,000 salary – 8000 x 12% = RM960
Employer EPF for RM4,000 + Bonus RM4,000 = RM1040
Employer EPF for RM6,000 + Bonus RM2,000 = RM960
Explanation of Bonus EPF Calculation
EPF for 8000 is not equal to EPF for 4000 +Bonus 4000.
Details of calculation for Basic salary of RM4,000
EPF RM4000 = 4000 x 13% = 520
If salary is below 5,000, then Bonus EPF = 4000 x 13% = 520
Total is RM1040
Details of calculation for Basic salary of RM6,000
EPF RM6000 = 6000 x 12% = 720
If salary is above 5,000, then Bonus EPF = 2000 x 12% = 240
Total is 960
Difference in calculating EPF above 5000.
Calculation of salary above 5,000 is at a rate of 12%
EPF for Salary 6000 = 6000 x 12% = 720
but EPF for Salary 6001 = 6100 x 12% = 732
Salary above RM5000 is calculated based on RM100 blocks.