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[Malaysian Payroll ONLY] Why is HR.my's salary calculation different from mine?

5 years 2 months ago - 4 years 2 months ago #2530 by Kap-Chew
** For Malaysian Payroll ONLY **

Over the years, there had been many (YES, many many many) users who came to me and raised the issue of salary calculation difference between HR.my and theirs. It might be due to difference in PCB, EPF, SOCSO or whatever.

I used to spend quite some time going through their calculation details (sometimes even hours), only to find out that among all such cases, 99.99% of them were due to user mistakes. Among those mistakes that I could still recall include:

  • Calculating PCB without considering EPF relief, or by using wrong amount for EPF relief
  • Using wrong EPF rates
  • Mistakes in calculation formula
  • Neglecting the rounding off requirements by relevant authorities
  • Treating yearly tax result as monthly PCB result
  • Elementary arithmetic errors
  • etc.

Meanwhile, there are also users who are comparing LHDN's ePCB calculator result with HR.my's. More often than not, the calculation will be different. This is because ePCB calculator is using formula-based calculation, while HR.my is using PCB table-based calculation. As a matter of fact, both are acceptable by LHDN. Using ePCB calculator, you are using actual monthly salary plus actual historical salary for the calculation, which may yield different results each month. And you usually pay lesser during the year, but at coming year's tax assessment, chances are you will likely need to pay some more again. Using PCB table-based calculation will usually yield higher but fixed result each month, and chances are you might get some money back upon tax assessment.

As such, starting from year 2019, I will no longer be able to offer such time-consuming assistance to vet through your salary calculations. If you have doubt with HR.my's calculation, you may easily turn off the automatic tax calculation through Employee->Management->Edit->Salary->Statutory Details->Tax Status, and set it to "No Tax Contribution". After that, use Statutory Contribution "Tax" to enter your own calculated tax amount. Likewise, if you need to use your own EPF amount (or others) instead of the system calculated ones, you may make use of the same Statutory Contribution module as well.

You may also run a quick check using this PCB Calculator .

If you are very sure that your calculation is correct, then you may show me your calculation and point out how HR.my has been wrong in the calculation with supporting proof. Please note that this is different from asking me to confirm why your calculation is different.
Last edit: 4 years 2 months ago by Kap-Chew.
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