Is EPF deducted from bonus?

Yes, the employee EPF contribution of 11% is deducted from your bonus. EPF contributions can be claimed as tax relief.

How can I reduce tax on my bonus?

Maximise your tax reliefs: additional EPF contributions (up to RM4,000), insurance or takaful (RM3,000), SSPN (RM8,000) and lifestyle relief (RM2,500).

When is PCB deducted for bonus?

PCB on a bonus is usually deducted in the month the bonus is paid. Your employer calculates it on your cumulative income, including the bonus.

Bonus tax calculator 2026.

Calculate your net bonus and effective tax rate easily.

Calculate bonus tax How bonus is taxed

Tax rates
0% – 30%
EPF on bonus
11% employee
PCB deducted
Month paid

Income and bonus details

Enter your annual salary and bonus amount. Results update as you type.

Annual salary

Total salary for the year, before bonus

Bonus month

One month ≈ RM 5,000

Bonus amount

Pick a bonus month above to fill this in, or type any amount.

Income tax without bonus: RM 1,320.00
Income tax with bonus: RM 2,270.00
Extra tax caused by the bonus: RM 950.00

Your bonus moves you from the 6% bracket into the 11% bracket, so part of it is taxed at a higher marginal rate.

100% private
Tax with vs without bonus
Updated 2026
EPF 11% shown

How is bonus taxed?

Bonus is taxed as part of your annual income.

01
Combined with annual income
Bonus is combined with your annual salary to form total income.
02
Taxed according to bracket
Total income is taxed according to Malaysia’s progressive rates (0% – 30%).
03
Higher marginal rate
Bonus is often taxed at the highest marginal rate because it adds to your existing income.

Tax brackets

Your bracket with the bonus is highlighted.

Tax brackets
Chargeable income	Rate	Tax on lower amounts
RM 0 – RM 5,000	0%	RM 0
RM 5,001 – RM 20,000	1%	RM 0
RM 20,001 – RM 35,000	3%	RM 150
RM 35,001 – RM 50,000	6%	RM 600
RM 50,001 – RM 70,000	11%	RM 1,500
RM 70,001 – RM 100,000	19%	RM 3,700
RM 100,001 – RM 400,000	25%	RM 9,400
RM 400,001 – RM 600,000	26%	RM 84,400
RM 600,001 – RM 2,000,000	28%	RM 136,400
RM 2,000,001 and above	30%	RM 528,400

Resident individual rates from LHDN. See the income tax calculator to include all your reliefs.

Questions

About tax on bonuses

Bonus is taxed as part of your annual income. It is added to your salary and the total is taxed at Malaysia’s progressive rates, so it may fall into a higher marginal rate.