How it is calculated
This follows the five-step method for additional remuneration in LHDN’s 2026 computerised PCB specification:
- PCB on the normal salary alone for that month (as in the PCB calculator).
- Estimated annual chargeable income is recalculated with the bonus minus EPF on the bonus. EPF relief stays capped at RM4,000 a year.
- Annual tax on that income.
- Additional PCB = annual tax − (PCB already deducted + normal-salary PCB × remaining months including this one).
- Total PCB = normal-salary PCB + additional PCB.
PCB is truncated to 2 decimal places; under RM10 nothing is deducted, otherwise it is rounded up to the next 5 sen. EPF on the bonus = Third Schedule EPF on (salary + bonus) minus EPF on the salary alone.
Worked example
January, no earlier data:
| Status | Salary | Bonus | Salary PCB | Bonus PCB | Total |
|---|---|---|---|---|---|
| Single | RM5,000 | RM10,000 | RM110.00 | RM950.00 | RM1,060.00 |
| Single | RM8,000 | RM16,000 | RM514.20 | RM3,039.65 | RM3,553.85 |
| Single (no EPF on bonus) | RM5,000 | RM5,000 | RM110.00 | RM400.00 | RM510.00 |
| Married, spouse not working, 2 children | RM5,000 | RM10,000 | RM70.00 | RM600.00 | RM670.00 |
LHDN’s official April example (married, spouse working, 3 children, salary RM5,500, bonus RM8,250, TP1 deductions of RM600 and bonus EPF of RM908) gives total PCB of RM833.70; entering those figures here gives the same result.
Why your number may differ
Zakat, a previous employer and disability reliefs are not included. The year-to-date figures you enter must match your payslips. Unless you enter the bonus EPF from your payslip, it is taken from the EPF schedule, which can differ slightly from a flat 11%. With several bonuses in a year, the result depends on accurate year-to-date figures.