What is Director Fee?


Director Fee is defined as the fee paid by the company to the company's director on annual basis, the fee is generally included retainer fees and meeting fees.


Usually, director fees are decided and needed to be approved by the company's shareholders during the shareholder's meeting.



Statutory Treatment of Director Fee


The director fee is only subjected to PCB.

The director fee is considered "Saraan Tambahan" - so its PCB calculation will be based on Saraan Tambahan.


My company's Director receives a regular amount every month, is this considered Salary or Director fee?


it depends on the nature of the payment. If a director has a specific job scope and is involved in any working-related tasks, and he/she receives the payment as salaries on monthly basis - it shall be treated as SALARY.


Salary shall be subjected to EPF, SOCSO, EIS, PCB & HRDF (if eligible).


How can I pay the Director fee via altHR?


Create Pay Item

  1. Go to Payroll > Setting >Set Pay Item
  2. Under Additional > Add New Pay Item 
  3. Key in Director Fee > Choose Director fee/Commission > Tag to EA field (B-1 (b)) > Confirm
  4. Tick*PCB* only > Complete & Next


Add to Director's Payroll


  1. Go to Payroll > Run Payroll > Select desired employee > Manage
  2. Under Addition > Add Item
  3. Choose Director fee > Key in the Amount > Send