Bonus Tax Calculator Malaysia 2026

Use this free Bonus Tax Calculator Malaysia to estimate PCB on bonus, employee EPF on bonus, net bonus after deductions, and the annual tax impact of receiving a bonus.

Enter Details

Monthly Gross Salary (RM)
RM

Your normal monthly gross salary before bonus.

Bonus Amount (RM)
RM

Annual, performance, contractual, or one-off bonus paid in the year.

Non-resident bonus tax is estimated at a flat 30%.
Used for salary and bonus EPF estimate.
Used for spouse relief estimate where applicable.
Spouse relief may apply for married taxpayers.
Estimate uses RM2,000 relief per child.
RM
Insurance, medical, education, lifestyle, SSPN, or other reliefs.
RM
Optional. Helps compare normal monthly PCB with bonus-month tax.

This calculator estimates the extra annual tax caused by a bonus. Official payroll PCB for additional remuneration may differ under LHDN payroll formulas.

What Is a Bonus Tax Calculator in Malaysia?

A Bonus Tax Calculator Malaysia helps employees estimate how a bonus may affect PCB/MTD, annual income tax, employee EPF contribution, and the final net bonus received.

Bonus tax can feel confusing because a bonus is usually paid in one month, but income tax is based on annual taxable income. A bonus month may therefore show a much higher PCB deduction than a normal salary month.

Best for employees checking bonus-month payslips and planning how much bonus they may actually keep.

Calculator Outputs

What You Can Estimate

Gross Bonus Bonus amount before deductions
Bonus PCB Estimated extra tax from bonus
Bonus EPF Estimated employee EPF on bonus
Net Bonus Estimated bonus after tax and EPF
Annual Tax Impact Before and after bonus comparison
Retention Rate How much of the bonus you may keep
Example

RM5,000 Salary + RM10,000 Bonus

Gross Bonus RM10,000
Estimated Bonus EPF 11% RM1,100
Estimated Bonus Tax Incremental RM950
Estimated Net Bonus RM7,950

Example assumes a single Malaysian tax resident, 11% EPF, RM4,000 EPF tax relief cap, no children, and no additional reliefs.

Sources: Malaysia Government PCB guidance, KWSP mandatory contribution guidance, and LHDN PCB references on additional remuneration. Use this calculator for planning only.

How Bonus Tax Is Estimated

A practical way to estimate bonus tax is to compare annual tax before bonus and annual tax after bonus. The difference is the estimated extra tax caused by the bonus.

Estimated bonus tax = Annual tax after bonus - Annual tax before bonus

For this calculator, EPF is treated in two ways: employee EPF on bonus can reduce the cash bonus you receive, but EPF tax relief is capped at RM4,000 for this 2026 planning estimate. This avoids overstating the tax saving from a large bonus EPF deduction.

1

Calculate annual salary before bonus.

2

Add the bonus to annual taxable employment income.

3

Estimate EPF on salary and bonus where applicable.

4

Apply personal reliefs and tax residency treatment.

5

Compare annual tax before and after bonus.

Does Bonus Affect PCB in Malaysia?

Yes. The Malaysia Government PCB guidance lists allowances or annual bonuses as income types subject to PCB. Because bonus increases annual employment income, payroll may deduct additional PCB in the month the bonus is paid.

This does not always mean the bonus is taxed at one fixed rate. For tax residents, the bonus is usually part of annual income and the final tax depends on Malaysia's progressive tax rates, reliefs, rebates, zakat, and other income details.

Normal Month

PCB is usually based on regular monthly salary and current payroll information.

Bonus Month

PCB may increase because payroll needs to account for extra annual taxable income.

Bonus Tax vs Bonus-Month PCB

Bonus tax and bonus-month PCB are related, but they are not always identical. Bonus tax is the estimated extra annual income tax caused by the bonus. Bonus-month PCB is the amount payroll deducts in the month the bonus is paid.

Official payroll may use LHDN's additional remuneration method, accumulated year-to-date income, previous PCB paid, TP1/TP3 information, zakat, rebates, and remaining months in the year. This is why your payslip may not match a simple annual-tax difference exactly.

Term Meaning Why It Matters
Bonus Tax Estimate Annual tax after bonus minus annual tax before bonus. Useful for planning final tax impact.
Bonus-Month PCB Tax deducted by payroll in the month bonus is paid. May differ from simple estimate.
Final Tax Payable Confirmed after annual income, reliefs, rebates and PCB are filed. Can result in refund or balance tax.

Is EPF Deducted From Bonus?

KWSP lists bonus as a payment liable for EPF contribution. This means employee EPF may be deducted from bonus and employer EPF may also apply, subject to employee category and official contribution rules.

However, payroll treatment can vary for certain employee categories, non-Malaysian employees, older contribution schedules, or special remuneration items. Always check your payslip and employer payroll policy.

Employee EPF On Bonus

Employee EPF may be deducted if the bonus is treated as EPF-liable wages.

Reduces cash bonus but increases EPF savings.

Bonus PCB

Additional PCB may be deducted in the month the bonus is paid.

Reduces the net bonus received.

Employer EPF On Bonus

Employer EPF may be paid separately by the employer where applicable.

Not deducted from employee salary.

Bonus Tax Example: RM10,000 Bonus

The example below shows a simplified planning estimate for a single Malaysian tax resident earning RM5,000 per month and receiving a RM10,000 bonus.

Item Calculation Amount
Gross Bonus One-off annual bonus RM10,000
Employee EPF On Bonus RM10,000 x 11% -RM1,100
Estimated Extra Tax Annual tax after bonus - before bonus -RM950
Estimated Net Bonus Bonus after EPF and tax RM7,950

This is a simplified estimate using the RM4,000 EPF tax relief cap. Official PCB on bonus may differ because payroll systems can use additional remuneration formulas, year-to-date PCB, and employee declaration details.

Frequently Asked Questions

Is bonus taxable in Malaysia?

Yes. Bonus is generally part of employment income and may be subject to PCB/MTD and final income tax.

How do I calculate tax on bonus?

A practical estimate is to calculate annual tax without the bonus, calculate annual tax with the bonus, then compare the difference.

Why is my PCB high when I receive a bonus?

Bonus increases annual taxable income, so payroll may deduct additional PCB in the bonus month.

Is EPF deducted from bonus?

KWSP lists bonus as a payment liable for EPF contribution, but final treatment can depend on employee category and payroll rules.

Is bonus tax final tax?

No. PCB on bonus is a tax deduction during payroll. Final tax is confirmed after annual tax filing.

Does EPF on bonus always reduce my tax?

Not always. Employee EPF may reduce cash bonus received, but tax relief for EPF is capped in this calculator. If your annual EPF relief is already at the cap, extra EPF on bonus may not reduce taxable income further.

Can I use this calculator for commission?

You can use it as a rough estimate for one-off commission or incentive payments, but official payroll treatment may differ.