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Market Daily Report: Bursa Malaysia Gives Up Earlier Gains To End Mixed

KUALA LUMPUR, Nov 19 (Bernama) -- Bursa Malaysia gave up earlier gains to end mixed today, amid a higher regional market showing, as property, construction, and healthcare counters attracted buying interests, while plantation, banking, and telecommunication stocks saw some profit-taking, an analyst said. At 5 pm, the FTSE Bursa Malaysia KLCI (FBM KLCI) eased 1.70 points to close at 1,602.34 from yesterday’s close of 1,604.04. The benchmark index, which opened 0.86 of-a-point lower at 1,603.18, moved between 1,601.02 and 1,608.88 during the trading session. However, the broader market was mixed to higher, with gainers leading decliners by 565 to 438 while 502 counters remained unchanged, 961 untraded, and 14 suspended. Turnover narrowed to 2.83 billion units valued at RM2.08 billion versus 2.96 billion units valued at RM2.23 billion yesterday. Rakuten Trade Sdn Bhd equity research vice-president Thong Pak Leng said the benchmark index remained range-bound and it required a dec

How To Calculate PCB or Scheduled Tax Deduction (STD) for Salary and Bonus

While watching World Cup and with the pay day coming in within a week, I'm thinking maybe I should do some write up on how the PCB or STD (Scheduled Tax Deduction) is calculated monthly as this has been a question mark for me whenever I am planning the budget for the subsequent month.

Most people will have doubt on how the PCB or STD is calculated especially during the bonus month. In fact, most of us will be anxiously to know the tax deduction to have proper view how much we can spend during that month. So, it is always best for us to know how the PCB are calculated so that we can plan ahead.



Here is how our STD or PCB are calculated.


Assuming person E is single and is drawing monthly salary of RM3,000 and contributing 11% from his monthly salary to EPF.

Salary = RM3,000
EPF deduction = RM330
(Note: The maximum total EPF deduction allowed for PCB or STD calculation is RM500 (RM6,000 / 12 = RM500))

Salary for PCB calculation
= Gross salary - EPF deduction
= RM3,000 - RM330
= RM2,670


According to PCB 2010 rate, the PCB for RM2,670 is RM24

So, every month E will be getting
= Gross salary - EPF deduction - PCB (or STD)
= RM3,000 - RM300 - RM24
= RM2,676

Now, assume that E is getting RM3,000 in bonus, how much would his PCB on that month?
Bonus = RM3,000
EPF deduction = RM330
Maximum available EPF deduction for PCB calculation = RM500, so the EPF deduction for bonus PCB calculation = RM500 - RM330 = RM170, instead of RM330

Bonus for PCB calculation
= Gross Bonus - EPF deduction
= RM3,000 - RM170
= RM2,830

The amount for bonus PCB calculation has a formula like the following:-
= (1/12 x net_bonus) + net_salary
= (1/12 x RM2,830) + RM2,670
= RM235.83 + RM2,670
= RM2,905.83


According to PCB 2010 rate, the PCB for RM2,905.83 is RM42

PCB for bonus = (RM42 - RM24) x 12 = RM216

Total PCB for the month with bonus
= PCB for salary + PCB for bonus
= RM24 + RM216
= RM240


So, during the bonus month,
Gross salary + bonus = RM3,000 + RM3,000 = RM6,000
EPF deduction = RM660
PCB (or STD) = RM24 + RM240 = RM264

E will be getting
= Gross salary + bonus - EPF deduction - PCB (or STD)
= RM6,000 - RM660 - RM264
= RM5,076

Why not try out the calculation with your salary and let me know whether the calculation and formula is accurate by checking your payslip. I am sure I will check it this month :D




Credit to The 8th Voyager




Comments

  1. Hope to hear from you soon. You can always email to me at jasontoh@gmail.com

    ReplyDelete
  2. I confused to some figures displayed above. in the 2nd paragraph, why the EPF deduction is 300 instead of 330?the last paragraph, EPF deduction is should 500 of 660?(as you mentioned max of EPF deduction is 500)

    Hope to hear fro you..Thank you.

    ReplyDelete
  3. Sorry, my bad. The 2nd paragraph should be 330.
    **********************************************
    Original:

    According to PCB 2010 rate, the PCB for RM2,670 is RM24

    So, every month E will be getting
    = Gross salary - EPF deduction - PCB (or STD)
    = RM3,000 - RM300 - RM24
    = RM2,676
    *********************************************

    I will fixed it to
    According to PCB 2010 rate, the PCB for RM2,670 is RM24

    So, every month E will be getting
    = Gross salary - EPF deduction - PCB (or STD)
    = RM3,000 - RM330 - RM24
    = RM2,646

    Thanks for notifying me.


    On the last paragraph, the EPF deduction is your real EPF deduction which is 11%. The max of RM500 is used if you want to use it to get your PCB deduction only. The last paragraph is merely calculating the net salary. So, EPF of RM660 is correct since RM660 will be deducted from your salary directly.

    ReplyDelete
  4. if the salary is rm2000.allowance RM 300.
    BONUS 2 MONTH HOW TO CALCULATE PCB.

    ReplyDelete
  5. Is your allowance fixed at RM300? Does this mean every month you are getting RM2300 - EPF - PCB? Anyway, let me do a bit of the calculation after work and then post it to you later. Stay tune.

    ReplyDelete
  6. Anyway, I blog another post on the calculation on the salary + bonus that you requested, assuming your allowance is not taxable. If it is taxable, let me know, although I can roughly figure it will be about the same. You can view it at http://money-made-ez.blogspot.com/2012/02/calculating-pcb-or-schedular-tax.html

    ReplyDelete
  7. If salary RM12,000.00 as monthly salary as well again 2 month of bonuses calculation

    ReplyDelete
  8. Hi Anonymous, sorry for late replying. Did not notice that there is new comments, Blogspot should have something to notify us on the comment.

    Anyway, I would need some time to calculate, but my rough figure tell me that easily you will be paying top bracket PCB - somewhere near more than 20%, right?

    ReplyDelete
  9. hi, if salary is 4800 and getting 3 months bonus
    how much be the tax calculated

    ReplyDelete
  10. Hi Anonymous, you can refer the following link

    http://money-made-ez.blogspot.com/2013/01/another-pcb-or-scheduled-tax-deduction.html

    ReplyDelete
  11. if the person basic is 1500, no pcb deduction, but after including the bonus he will be get 3000. so, how to calculate ?

    ReplyDelete
  12. Normal EPF deduction = RM165
    Bonus EPF deduction = RM165 (as maximum allowable is RM500)

    Bonus = RM1500
    Net Bonus for PCB calculation
    = Gross bonus - Bonus EPF deduction
    = RM1500 - RM165
    = RM1335.

    Amount for bonus PCB calculation
    = (1/12 x net bonus) + net salary
    = (1/12 x 1335) + 1335
    = 111.25 + 1335
    = 1446.25
    (<2K)
    So, the PCB = 0

    ReplyDelete
  13. I gotta favorite this website it seems very helpful . convert money

    ReplyDelete

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