Payroll Overview
The Payroll module calculates employee salaries, applies statutory deductions (EPF, SOCSO, EIS, PCB/MTD), generates payslips, and posts payroll journal entries to Accounting.
What Payroll does
Payroll automates the monthly salary run. It reads employee contracts for base salary, applies salary rules for allowances and deductions, calculates Malaysian statutory contributions (EPF, SOCSO, EIS) and income tax (PCB/MTD), generates individual payslips for employee review, and posts the payroll journal entry to Accounting. It connects with Attendances (for overtime), Time Off (for unpaid leave deductions), and Expenses (for reimbursements through payroll).
Malaysian statutory requirements
Malaysian payroll has four statutory deductions that must be calculated and remitted monthly: EPF (KWSP) — employee and employer contributions, rates vary by age and employment type. SOCSO (PERKESO) — social security contributions, employee and employer portions, capped at MYR 5,000 monthly insurable earnings. EIS (SIP) — Employment Insurance System contributions, low rates for both employer and employee. PCB/MTD — Monthly Tax Deduction for income tax, calculated from progressive tax brackets with personal relief deductions. All four must be remitted by the 15th of the following month.