Is Annual leave subjected to additinonal tax wages

More
5 years 6 months ago #29 by Sharon
Hi ,

Is there anyone who can advise me on whether Annual leave payment is consider as an additional tax wages?
Also whether the annual leave is subject to the SOCSO ?


Thanks.
Sharon

Please Log in or Create an account to join the conversation.

More
5 years 6 months ago - 5 years 6 months ago #30 by Kap-Chew
Hi Sharon,

1. Annual leave payment is definitely considered as part of remuneration, you may take a look at the explanation on the types of Remuneration here: payroll.my/forum/general/8-payroll-my?start=6#26

2. Annual leave is also subject to SOCSO contribution, as according to Perkeso:

Definition Of Wages

All renumeration payable in money to an employee is taken into account as wages for the purposes of SOCSO contributions. These include the following payments:

• Salary
• Overtime payments
• Commission
Payments for leave such as annual, sick and maternity leave, rest day, public holidays
• Allowances such as incentive, good behavior, cost of living (COLA)
• Service Charge

Kap-Chew
Last edit: 5 years 6 months ago by Kap-Chew.

Please Log in or Create an account to join the conversation.

More
5 years 6 months ago #31 by Sharon
Dear Kap-Chew ,

Thanks for the reply below.

May I ask another question on how do we define the additional tax wages?
Is it any wage beside basic will be considered additional?

Sorry to ask as I'm not sure about Malaysia payroll.

Please Log in or Create an account to join the conversation.

More
5 years 6 months ago #32 by Kap-Chew
Hi Sharon,

Generally, you may refer to this post on the remuneration as defined by the Inland Revenue Board of Malaysia: payroll.my/forum/general/8-payroll-my?start=6#26

Please Log in or Create an account to join the conversation.

Time to create page: 0.087 seconds
Powered by Kunena Forum