What comes off a bonus
- EPF, 11%. A bonus counts as wages for KWSP, so the usual 11% comes off. Your employer adds their share too, at the rate for your normal salary: 13% if you earn RM5,000 or less a month, even when the bonus pushes that month over RM5,000.
- PCB. LHDN works out your tax for the whole year with the bonus added, takes away the tax you'd pay without it, and deducts the difference in the bonus month.
- No SOCSO or EIS. PERKESO does not count an annual bonus as wages, so those two stay the same as any other month.
Why a bonus seems taxed so hard
Your bonus sits on top of your salary, so all of it is taxed at your highest band. Think of the tax bands as a buffet that charges more per plate after your fifth plate. The bonus is the extra plates, so it pays the higher price, while the plates you already ate keep their old price. Crossing into a higher band never makes your whole salary more expensive.
The EPF on your bonus also adds to your EPF tax relief, but only up to the RM4,000 cap. Most people earning over about RM3,000 a month already hit that cap from their salary alone.
When the payslip looks different
This page assumes the bonus is your only extra pay this year and that your salary stays the same. LHDN's month-by-month PCB formula can land a few ringgit away from this figure. If too much PCB was taken over the year, you get the difference back when you file your e-BE.
Sources: KWSP contribution rates, PERKESO contribution table, LHDN tax rates.