QUOTE(Roadwarrior1337 @ May 19 2022, 01:31 PM)
Hi guys
Got a question regarding buy out. I joined a new company and the new company bought me out 2 months from my job notice
So they bought me out and paid x sum. My 2nd month salary got slashed after the tax from the buy out was reflected
Now im planning to take time off and leave this company. I would need to pay them back the buy out as its a bonding buy out
But heres the thing, do i pay them the full amount or the amount before tax ?
Coz i already got tax and now pay full amount again…its like dont make sense
Depends on your employment letter. If you bond is one year and you only stay for 2 months, the usual practice is 10/12 x the buy-out amount this company paid to your ex-employer. However, there are exception. If your current employment is on contract basis, be prepared you have to pay the full amount. This is due to the short term basis, most of the companies pay buy-out fees because of urgency.
Effective from 2019, buy-out amount is taken as your income and you need to pay personal income tax for this amount. If you leave your current employer, the tax you paid is nothing to do with them. Hence, they will recover the actual buy-out fees they paid to your ex-employer.