# Common mistake when manually calculating EPF for Bonus

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.