Payroll Human Resources

Benefits & Allowances

Understanding staff benefits, fixed allowances, and employer contributions.

Benefits & Allowances

Benefits & Allowances

Understanding staff benefits, fixed allowances, and employer contributions.

Quick Access

Role Navigation Route
Employee HR → My Payroll /hr/my-payslip (view benefits in payslip)
HR Admin Settings → Benefits /settings/benefits

For Employees

Viewing Your Benefits

Benefits appear on your payslip under:

  • Allowances - Regular fixed payments
  • Employer Contributions - Amounts paid by employer

Common Benefit Types

Fixed Allowances

Allowance Description
Transport Monthly transport allowance
Meal/Food Meal allowance
Housing Housing or accommodation allowance
Phone/Communication Mobile phone allowance
Uniform Clothing allowance
Attendance Perfect attendance bonus

Statutory Benefits

Benefit Description
EPF (Employer) Employer's provident fund contribution
SOCSO (Employer) Employer's social security contribution
EIS (Employer) Employer's employment insurance contribution

Insurance Benefits

Benefit Description
Medical Insurance Health coverage
Life Insurance Life insurance coverage
Personal Accident Accident insurance

Understanding Benefit Brackets

Some benefits vary by:

  • Salary level - Higher salaries may have different rates
  • Job grade - Management vs staff benefits
  • Tenure - Benefits increasing with service years

Checking Your Benefits

  1. View your payslip for monthly benefit amounts
  2. Contact HR for benefit scheme details
  3. Check employee profile for assigned benefits

For HR Admin

Managing Benefit Schemes

  1. Go to Settings → Benefits (/settings/benefits)
  2. View list of benefit schemes
  3. Create or edit benefit configurations

[Screenshot: benefits-list]

Creating a Benefit Scheme

  1. Click + New Benefit
  2. Configure:
    • Benefit Name - e.g., "Transport Allowance"
    • Type - Allowance, Employer Contribution, Insurance
    • Calculation - Fixed amount or percentage
    • Taxable - Whether benefit is taxable
    • EPF-able - Subject to EPF calculation

[Screenshot: benefit-editor]

Benefit Settings

Setting Description
Fixed Amount Same amount for all
Percentage Based on basic salary
Bracket-based Amount varies by criteria
Taxable Included in taxable income
EPF-able Included in EPF calculation

Benefit Brackets

For tiered benefits:

  1. Open benefit scheme
  2. Go to Brackets tab
  3. Set amounts per tier:
    • Salary range RM0 - RM2,000: RM200
    • Salary range RM2,001 - RM5,000: RM300
    • Salary range RM5,001+: RM400

[Screenshot: benefit-brackets]

Custom Benefit Properties

For complex benefit calculations:

  1. Open benefit scheme
  2. Go to Custom Properties
  3. Define additional rules or conditions

Assigning Benefits to Employees

Individual Assignment:

  1. Go to employee profile
  2. Navigate to Benefits section
  3. Add/remove benefits

Bulk Assignment:

  1. Go to Benefits list
  2. Select benefit scheme
  3. Assign to multiple employees
  4. Or assign to department/job grade

Fixed Allowances per Employee

For employee-specific allowances:

  1. Go to employee profile
  2. Find Fixed Allowances section
  3. Add allowances specific to this employee

Benefit Categories

Taxable vs Non-Taxable

Taxable Non-Taxable
Most cash allowances EPF contributions
Bonuses Medical benefits (within limits)
Commission SOCSO contributions

Tax treatment follows local tax regulations.

EPF-able Benefits

Benefits included in EPF calculation:

  • Basic salary
  • Fixed allowances
  • Commission
  • Bonuses

SOCSO Coverage

SOCSO provides:

  • Employment Injury Insurance
  • Invalidity Insurance
  • Benefits for work-related incidents

Employer Contribution Summary

Standard Employer Costs

Contribution Rate (approx)
EPF 12-13% of salary
SOCSO Varies by salary
EIS 0.2% of salary

Actual rates depend on current regulations and employee salary.

Total Employment Cost

Total cost to employer = Basic Salary + Allowances + Employer Contributions


Common Scenarios

New Employee Benefits

When onboarding:

  1. Assign standard benefit package
  2. Add role-specific allowances
  3. Verify statutory contribution setup

Benefit Changes

When benefits change:

  1. Update effective date
  2. Modify benefit amount/scheme
  3. Changes apply from next payroll

Removing Benefits

When benefits end:

  1. End-date the benefit assignment
  2. Process in next payroll
  3. Verify benefit removed from payslip

Tips

  1. Know your benefits - Understand what benefits you receive and their value
  2. Review annually - Benefits may be reviewed during performance cycles
  3. Report changes - Notify HR if your circumstances change (e.g., bank account)

See Also

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