Disclaimer: The content of this article pertains to the altHR payroll module (not PayrollPanda). As of this date, the altHR payroll module has been discontinued as we form a new partnership with PayrollPanda to bring forth enhanced payroll solutions for our users.
What are Pay Items
- Pay items are the components that make up your employee’s monthly salary.
- There are four categories of pay items you can use in the payroll module:
|Category||Example of Pay Items|
|1||Normal (Remuneration)||Allowances, usually fixed allowances that are paid on a fixed basis and the amount does not vary in a different month|
|2||Additional (Remuneration)||One-off or ad-hoc pay items such as bonuses and commissions|
|3||Overtime (Pay)||Normal overtime, overtime on the rest day and public holiday|
|4||Deduction||This is the only pay item that decreases employee’s pay. Examples include unpaid leave, advances, zakat deduction, and more.|
To set and configure pay items
1. On the left panel of your admin dashboard, head to Payroll > Settings.
2. Click on the Set Pay Items tab.
3. Select the category that you'd like to add or edit the pay items.
4. Select the desired setting by ticking (untick to deselect) appropriately for each statutory entitlement for the pay item.
5. Click Add New Pay Item to add any pay item that is not on the list yet. (New pay item name must not be duplicated with existing pay item's name)
Important: Please note that the preset pay items are there as a reference for you to set up. You may, however, use the preset pay items if you see fit. Furthermore, because each company may/will have different payment terms, payment consistency, and payment purposes, this could result in different statutory entitlements and tax treatment. To ensure that your company's pay item nature is correctly configured in altHR, we strongly recommend that you contact LHDN / KWSP / PERKESO / HRDC to check and confirm.
Wages subjected to EPF/SOCSO/PCB/HRDF
Note: Company admin are advised to contact the relevant statutory bodies to confirm the statutory entitlement as different natures of pay items could result in different entitlement/exemption. The below information serves as a general guideline taken from the statutory's website for reference.
PCB/ Income Tax: