Are you calculating EPF/PCB correctly?

The rate in the Jadual is not that straight forward.

It has been a myth that how we actually calculate EPF amount for our employee.

To our understanding, if my salary is RM3,801, what is supposed to be the 8%?
RM3,801 * 8% = RM304.08.

Correct right? I used calculator, excel and whatever way I do, it’s RM304.08.

I happily pay this amount to EPF via the bank counter for a couple months, and BANG: EPF found that it’s wrong, sends me a letter and ask me to do all the payback (which is a nightmare for such tiny amount month by month of all my employees)!

The actual to be paid is RM306. Not RM304.08. It’s kind of a rounded figure in a range.


So I learn my lesson – it has to be Jadual, or it’s so difficult to check for everyone, we use a payroll system like to populate for us.

Hope it helps!

Note: another issue we always see - before using many customers actually deduct more than RM500 (e.g. RM632) in EPF for PCB calculation. Which is wrong too. According to LHDN, the maximum you can do so is RM500 a month.

The exact wording:-
"Employer whose compute PCB using the schedule of MTD shall base on gross taxable remuneration less EPF (inclusive EPF for non taxable remuneration/allowance) limited to RM500 per month if the actual deduction exceeds RM500. "