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 VSS calculation

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TSlyt25_1234
post Sep 26 2016, 09:56 AM, updated 8y ago

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Hi all,

Can I ask how is the VSS calculation works in Malaysia?
For example,
Joined the Company with starting salary of RM1K.
Worked for the current Company for 10 years.
Last drawn salary payslip is RM5K.

VSS package given by Company, each completed year of service is given 1 month salary.

VSS given on the 10th year, so is the calculation below correct?
RM5K x 10 months = RM50K?

This post has been edited by lyt25_1234: Sep 26 2016, 09:58 AM
COOLPINK
post Sep 26 2016, 10:00 AM

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QUOTE(lyt25_1234 @ Sep 26 2016, 09:56 AM)
Hi all,

Can I ask how is the VSS calculation works in Malaysia?
For example,
Joined the Company with starting salary of RM1K.
Worked for the current Company for 10 years.
Last drawn salary payslip is RM5K.

VSS package given by Company, each completed year of service is given 1 month salary.

VSS given on the 10th year, so is the calculation below correct?
RM5K x 10 months = RM50K?
*
that would be correct.
but your going have to deduct income tax on that RM50k and its going to be a lot!
tishaban
post Sep 26 2016, 10:36 AM

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Best to check with HR or payroll as they're the one doing the calculations based on their rules (if they have any rules). Try and ask for some discounts on income taxes as well, apparently for mandatory separation there is a provision for that.

TSlyt25_1234
post Sep 26 2016, 11:14 AM

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QUOTE(tishaban @ Sep 26 2016, 10:36 AM)
Best to check with HR or payroll as they're the one doing the calculations based on their rules (if they have any rules). Try and ask for some discounts on income taxes as well, apparently for mandatory separation there is a provision for that.
*
Wah, can nego to discounts on income taxes?
How can it discount? Is this legal? or under table method?
tishaban
post Sep 26 2016, 04:04 PM

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QUOTE(lyt25_1234 @ Sep 26 2016, 11:14 AM)
Wah, can nego to discounts on income taxes?
How can it discount? Is this legal? or under table method?
*
I did state to check with HR, so best to check with HR. Or if you want you can google the details. Sorry I don't spoonfeed.

knwong
post Sep 26 2016, 09:58 PM

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Which company give VSS?
WallChecker
post Sep 26 2016, 11:18 PM

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Assuming everything is what u mentioned then that should be correct. However, each company has their own policy etc so it may not be the same to everyone and some are case by case basis. Few points to note:-

1) I believe not every company practices 1 month (Unless you are covered by Employment Act/Unionized employee), it is called as VSS as such terms and agreement are written as mutually agreed.
2) It depends on what category payment VSS paid via payroll whether it is taxable or non-taxable (No one can answer this question except your HR/payroll)
3) There are companies that capped at certain N of years/amount. (Varies by company), these will affect those highly paid employees.

U can google to read more: I simply search, http://www.mbam.org.my/mbam/images/MBJ2Q05...SSI(98-100).pdf

Above are based on my knowledge may not be 100% correct.

KonKam
post Sep 27 2016, 11:51 AM

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QUOTE(lyt25_1234 @ Sep 26 2016, 09:56 AM)
Hi all,

Can I ask how is the VSS calculation works in Malaysia?
For example,
Joined the Company with starting salary of RM1K.
Worked for the current Company for 10 years.
Last drawn salary payslip is RM5K.

VSS package given by Company, each completed year of service is given 1 month salary.

VSS given on the 10th year, so is the calculation below correct?
RM5K x 10 months = RM50K?
*
yes, you are correct but if i am not mistaken,
you are exemption of RM10,000 relief for every completed year of service.

which mean your 50K is exempted from paying tax.
but you will still have to pay your portion of EPF.

50k minus EPF 11%

TSlyt25_1234
post Sep 27 2016, 12:37 PM

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QUOTE(KonKam @ Sep 27 2016, 11:51 AM)
yes, you are correct but if i am not mistaken,
you are exemption of RM10,000 relief for every completed year of service.

which mean your 50K is exempted from paying tax.
but you will still have to pay your portion of EPF.

50k minus EPF 11%
*
Thanks for the reply, but I don't quite understand the last part : 50k minus EPF 11%?

Why do I still need to do that?
KonKam
post Sep 27 2016, 01:02 PM

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QUOTE(lyt25_1234 @ Sep 27 2016, 12:37 PM)
Thanks for the reply, but I don't quite understand the last part : 50k minus EPF 11%?

Why do I still need to do that?
*
which mean you won't get fully 50K but you will have to contribute your share of 11% EPF portion

50k minus 5.5k which mean you only take home 44.5K



 

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