"Have you ever realized your PCB is
always higher when receive Bonus?"
“Are you being tired of staff been asking
why their PCB is higher
when it comes to distributing Bonus?"
Many of you may heard answers like “This is given by System!”, “No Idea, you may check with IRB”.
Let’s face it, these are not convincing answers! Let’s find out how PCB works:
Tax Rate: 10%
Every month you will be paying RM 10.00 for PCB.
You receive 1-month bonus and it push your tax bracket from 10% to 15%
So, the calculation will be:
RM 100.00 x 15% = RM 15.00 (Additional Tax)
Monthly income: RM 100.00 x 15% (Increased) = RM 15.00
December PCB Payable: RM 15.00 + Rm 15.00 = RM 30.00
But now, with your bonus, it boosted your yearly tax bracket from 10% to 15%.
This means your monthly PCB is now RM 15.00, and you only paid RM 10.00 per month starting from January to November!
Now, because of the change of yearly tax bracket, you owe RM 5.00 each month starts from January to November which cost RM 5.00 x 11 months = RM 55.00
RM 30.00 (Dec Initial PCB) + RM 55.00 (Backpay PCB from Jan to Nov) = RM 85.00
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