How to calculate Bonus in Payroll Malaysia
What is a Bonus in Payroll HRMS Malaysia?
Bonus is an employee’s benefits given by company, usually at the end of year or company year-end closing (depend on each company’s policy). The amount is given differently and vary according to employee appraisal level or company profits. Bonus is not calculated together with employee monthly salary, however, bonus is treated as another pay to employees in HRMS payroll Malaysia.
Learn more about iFLEXiHRMS Payroll System towards employee Bonus Calculation Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee monthly salary calculation. It is a simple and easy payroll software system by allowing your company employee Bonus calculation Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
Types of Bonus in Payroll Malaysia
There are several types of bonus to offer. Each of the bonus are given in a specific timing and event. Most common types of bonus for HRMS payroll in Malaysia are known as the following:
- Annual Bonus
Annual Bonus is the most common bonus that given by every organization and company throughout the world. It is given annually and calculated as per employee’s salary percentage at the end of the year (or company year-end).
- Signing Bonus
This bonus is considering rare or one-time bonus. It only be given to the employee while there is another company willing to recruit him/her. On the other words, a company A who willing to hiring an employee from company B, offer a signing bonus as an attractive carrot in order to let the employee joins company A.
- Referral Bonus
Same as the title goes, referral bonus is given where an employee who help company to recruit a new employee. However, the bonus is varying and depending on the trend/market situation. To put it simply, Referral Bonus is usually given where a current company employee who help to recruit a new employee.
- Holiday Bonus
Holiday bonus is given out during holiday, where is a sign shown by company to employee by appreciating for all of their hard work throughout the year. This is a selective bonus might not be given out by most of the companies in Malaysia.
- Profit Sharing Bonus
Profit Sharing Bonus is given to employee by the profit gain of the company throughout a year. It is different from Annual Bonus. Annual Bonus is given to employee through the percentage of employee salary pay, Profit Sharing Bonus is given to employee through the percentage of company earnings.
- Commission Bonus
This is popular in all of the sales team for each companies in Malaysia. Commission Bonus is mainly used for motivate sales person, by giving a percentage or part of the confirmation sales profit to the salesperson, in order to gain more sales/revenue to the company. Each company has its policy for allocating Commission Bonus percentages.
Bonus Slip in Payroll HRMS Malaysia
A bonus slip will be given to employee while he/she is getting a bonus rewards. A bonus slip is usually managed in an excel format so that company’s HR can printed it out easily.
However with the help of iFlexiHRMS Payroll bonus calculation Malaysia, you are able to customize your bonus slip format and bonus slip content easily within the software. Afterwards, batch printed out the bonus slip to all of the employee accordingly.
Bonus Deduction and Employer Contribution
Do you know that your company or your employer are required to provide you EPF contribution while giving you bonus?
We have a list of Statutory Deduction and employer contribution, click to learn more here.
How to calculate Bonus Malaysia?
Here we will provide a certain example for How to calculate Bonus Malaysia and Bonus calculation in HRMS Payroll Malaysia.
- Flexi has a salary of RM2,000 per month, however he gained a 1-month bonus, how to calculate bonus Malaysia?
Flexi has RM2,000.00
According to the EPF Contribution Table
From RM1980.01 to 2000.00
Employee’s share: 180.00
Employer’s share: 260.00
Bonus after deduction
= RM2000 – RM180
= RM1820
Bonus is not required for deduction of SOCSO contribution and EIS contribution. So, Flexi gains a Bonus of RM1820 instead of RM2000 after the deduction of EPF contribution.
- Flexi has a salary of RM2,000 per month, however he gained a 2-months bonus, how to calculate bonus Malaysia?
Flexi has RM2,000.00
2 months Bonus
= RM 2000 x 2
= RM 4000
According to the EPF Contribution Table
From RM3980.01 to 4000.00
Employee’s share: 360.00
Employer’s share: 520.00
Bonus after deduction
= RM4000 – RM360
= RM3640
Bonus is not required for deduction of SOCSO contribution and EIS contribution. So, Flexi gains a Bonus of RM3640 instead of RM4000 after the deduction of EPF contribution.
How to calculate Bonus Malaysia and Bonus slip in just one click?
iFlexiHRMS is a HRMS solution that provide advanced payroll solution that fits current industry standards. You are able to perform employee’s Bonus Calculation Malaysia and Bonus slip in just one click.
Learn more about iFLEXiHRMS Payroll System towards employee Bonus calculation Malaysia
iFLEXiHRMS Payroll System allow you to one click process employee Bonus calculation Malaysia. It is a simple and easy payroll software system by allowing your company employee Bonus calculation Malaysia can be done easily and efficiency.
iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.
Related Products from iFLEXi
Found Our Solutions Helpful To You?
Hit the request demo button, fill in a simple form and our staff will contact you as soon as possible.