What Does EPF / SOCSO / EIS / TAX Base in Payroll Review Mean?

EPF / SOCSO / EIS / TAX Base is known as a Statutory Base.

To HR Admins/ Payroll PICs, they would have noticed these statutory bases under a payroll review after processing payments for the current month. Normal employees can view these statutory bases on their payslips.

What do these statutory bases mean?

All the earnings that are flagged for respective statutory will be added to this base. See below for an exemplary payroll review:

• EPF Base = RM 4,015 as it includes all earnings except for the Overtime/ Rest Day payroll item (RM 200)
  
  
• SOCSO / EIS Base = RM 4,215 as it includes all earnings because the payroll items have been flagged under SOCSO & EIS
  
  
• HRDF Base = RM 1, 715 as it includes Salary + Regional + Handphone allowance only. Other items have NOT been flagged for
  
  
• Fixed Income Tax Base = RM 2,215 as other earnings besides salary have been flagged under B1(a) to be included as fixed wages
  
  
• Additional Tax Base = Other earnings that are flagged apart from B1(a)

If you would like to change the statutory flagging, navigate to the Payroll Items and change it according to your company policy and also ensure it complies with all statutory legislations

• A = Income Tax Category & Flagging
  
  
• B = Earning / Deductions that are liable for statutory contribution

You may refer to this article to edit the Payroll Items:

https://worksy.freshdesk.com/support/solutions/articles/63000269057-creating-edit-payroll-items