Bonus

Employment

A bonus is an extra payment an employer gives on top of an employee's basic salary, usually as a reward for company or individual performance. In Malaysia bonuses are common at year-end or festive periods, and some sectors use a contractual thirteenth-month pay. Unless the employment contract or a collective agreement clearly promises a bonus, it is generally discretionary, meaning the employer decides whether and how much to pay based on business results. Bonuses are taxable income and also attract EPF and other statutory deductions. Specific entitlement always depends on your contract and is subject to the latest rules.

Related Q&A

• If I resign before bonus month, do I still get prorated bonus?

Related terms

EPF / KWSPSOCSO / PERKESOEIS (Employment Insurance System)Notice PeriodRetrenchmentEA FormMinimum WageOvertime (OT)