{"id":954,"date":"2025-04-04T08:51:12","date_gmt":"2025-04-04T08:51:12","guid":{"rendered":"https:\/\/www.info-tech.com.my\/blog\/?p=954"},"modified":"2026-02-25T07:19:04","modified_gmt":"2026-02-25T07:19:04","slug":"understanding-performance-bonuses-and-prorated-bonuses","status":"publish","type":"post","link":"https:\/\/www.info-tech.com.my\/blog\/understanding-performance-bonuses-and-prorated-bonuses\/","title":{"rendered":"Understanding Performance Bonuses &amp; Prorated Bonuses"},"content":{"rendered":"\r\n<h2 class=\"wp-block-heading\"><strong>Performance Bonuses: A Motivator and a Payroll Challenge\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">In Malaysia\u00a0<\/span><b><span data-contrast=\"auto\">performance bonuses<\/span><\/b><span data-contrast=\"auto\">\u00a0have\u00a0a big impact\u00a0on employee motivation and recognition of\u00a0great work. They boost morale and reward\u00a0good results\u00a0\u2014 but they also bring up a question HR teams tackle every year:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><b><span data-contrast=\"auto\">&#8220;How can we figure out bonuses when people start or leave mid-year?&#8221;<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">This is where\u00a0<\/span><b><span data-contrast=\"auto\">prorated bonuses<\/span><\/b><span data-contrast=\"auto\">\u00a0come into play. To be fair, companies adjust bonuses based on how long each employee worked during the bonus period.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><strong>In this guide,\u00a0you&#8217;ll\u00a0learn about:\u00a0<\/strong><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"24\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">How performance and prorated bonuses work<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"24\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Whether companies must pay them<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"24\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">How to figure out prorated bonuses<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"24\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">How EPF, SOCSO, and PCB apply to bonuses<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"24\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">How HRMS software simplifies the process<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h2><strong>What Is a Performance Bonus?\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">A\u00a0<\/span><b><span data-contrast=\"auto\">performance bonus<\/span><\/b><span data-contrast=\"auto\">\u00a0is a cash reward that recognizes an employee&#8217;s work during a review period linked to goals or company results.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">Unlike fixed pay, bonuses are\u00a0<\/span><b><span data-contrast=\"auto\">optional<\/span><\/b><span data-contrast=\"auto\">\u00a0\u2014 they depend on performance, company rules, or contract terms.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><strong>Examples of performance bonuses:\u00a0<\/strong><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"25\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Yearly performance bonuses<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"25\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Bonuses for finishing projects<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"25\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Sales or KPI-based rewards<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<h2><strong>What Is a Prorated Bonus?\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">A prorated bonus gives\u00a0employees\u00a0a\u00a0portion\u00a0of the yearly bonus if they\u00a0didn&#8217;t\u00a0work the full year \u2014 for instance, if they started midway or quit before bonus distribution.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<div style=\"justify-content: space-between; background: linear-gradient(90deg, #f3c45c 0%, #f5f5f5 100%); padding: 16px 19px; align-items: center; border-radius: 5px; gap: 20px; border: 0.3px solid #86868680;\">\r\n<p style=\"color: #1c377e; padding: 0 !important; margin: 0 !important; font-size: 24px;\"><strong>A prorated bonus in Malaysia is a partial performance bonus that has a calculation based on the time an employee worked during the bonus period\u00a0<\/strong><\/p>\r\n<\/div>\r\n<p><span data-contrast=\"auto\">This ensures fairness and consistency for all\u00a0employees\u00a0regardless of when they started or left.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"362\" class=\"wp-image-956\" src=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/What-Is-PCB-Prorated-Calculated-Bonus-1024x362.jpg\" alt=\"\" srcset=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/What-Is-PCB-Prorated-Calculated-Bonus-1024x362.jpg 1024w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/What-Is-PCB-Prorated-Calculated-Bonus-300x106.jpg 300w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/What-Is-PCB-Prorated-Calculated-Bonus-768x272.jpg 768w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/What-Is-PCB-Prorated-Calculated-Bonus-1536x543.jpg 1536w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/What-Is-PCB-Prorated-Calculated-Bonus-2048x724.jpg 2048w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n<h2><strong>Do Malaysian Employers Have to Pay Bonuses?\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">No.\u00a0<\/span><b><span data-contrast=\"auto\">Performance bonuses are not required under Malaysian law,<\/span><\/b><span data-contrast=\"auto\">\u00a0unless:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"26\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">The\u00a0<\/span><b><span data-contrast=\"auto\">employment contract<\/span><\/b><span data-contrast=\"auto\">\u00a0or\u00a0<\/span><b><span data-contrast=\"auto\">collective agreement<\/span><\/b><span data-contrast=\"auto\">\u00a0says so, or<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"26\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">The company&#8217;s internal policy makes this promise.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><strong>Companies decide:\u00a0<\/strong><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"27\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">If new hires or probationers can get bonuses.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"27\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">If a minimum time of service is needed (like 6 or 12 months).<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">Even though the law\u00a0doesn&#8217;t\u00a0require them, bonuses are still a powerful way to\u00a0<\/span><b><span data-contrast=\"auto\">increase retention<\/span><\/b><span data-contrast=\"auto\">\u00a0and\u00a0<\/span><b><span data-contrast=\"auto\">motivate employees<\/span><\/b><span data-contrast=\"auto\">\u00a0\u2014 in fields with lots of competition.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n\r\n\r\n\r\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"536\" class=\"wp-image-957\" src=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Hiearchy-Of-Bonus-HR-1024x536.jpg\" alt=\"\" srcset=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Hiearchy-Of-Bonus-HR-1024x536.jpg 1024w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Hiearchy-Of-Bonus-HR-300x157.jpg 300w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Hiearchy-Of-Bonus-HR-768x402.jpg 768w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Hiearchy-Of-Bonus-HR.jpg 1379w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n<h2><strong>How to\u00a0Calculate\u00a0Performance &amp; Prorated Bonuses\u00a0<\/strong><\/h2>\r\n<p><strong>In Malaysia, people often use two ways:\u00a0<\/strong><\/p>\r\n<h3><strong>Method 1: Dividing by Months, Weeks, or Days\u00a0<\/strong><\/h3>\r\n<p><span data-contrast=\"auto\">This way splits the whole bonus period by the time the\u00a0employee\u00a0was there.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><strong>Formula:\u00a0<\/strong><\/p>\r\n<p><b><span data-contrast=\"auto\">Prorated Bonus = (Months Worked \u00f7 Total Months in Bonus Period) \u00d7 Full Bonus<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><strong>Example:\u00a0<\/strong><\/p>\r\n<p><span data-contrast=\"auto\">Employee started:\u00a0<\/span><b><span data-contrast=\"auto\">July 15, 2024<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">Bonus period:\u00a0<\/span><b><span data-contrast=\"auto\">Jan 1 \u2013 Dec 31, 2024<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">Full-year bonus:\u00a0<\/span><b><span data-contrast=\"auto\">RM5,000<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">Worked: ~5.5 months<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><b><span data-contrast=\"auto\">Prorated Bonus<\/span><\/b><span data-contrast=\"auto\">:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">\u00a0(5.5 \u00f7 12) \u00d7 RM5,000 = RM2,292<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1594 size-full\" src=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/performance-bonus-calculation-formula.jpg\" alt=\"performance bonus calculation formula\" width=\"995\" height=\"360\" srcset=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/performance-bonus-calculation-formula.jpg 995w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/performance-bonus-calculation-formula-300x109.jpg 300w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/performance-bonus-calculation-formula-768x278.jpg 768w\" sizes=\"auto, (max-width: 995px) 100vw, 995px\" \/><\/p>\r\n<ul class=\"wp-block-list\"><\/ul>\r\n<!-- \/wp:post-content -->\r\n\r\n<!-- wp:table -->\r\n<figure class=\"wp-block-table\"><\/figure>\r\n<!-- \/wp:table -->\r\n\r\n<!-- wp:paragraph -->\r\n<p>Tip:<span data-contrast=\"auto\">\u00a0You get more\u00a0accurate\u00a0results when you prorate by\u00a0<\/span><b><span data-contrast=\"auto\">weeks<\/span><\/b><span data-contrast=\"auto\">\u00a0or\u00a0<\/span><b><span data-contrast=\"auto\">days<\/span><\/b><span data-contrast=\"auto\">\u00a0instead of months, because months\u00a0don&#8217;t\u00a0all have the same number of days.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h3><strong>Method 2: Proration by Actual Workdays\u00a0<\/strong><\/h3>\r\n<p><span data-contrast=\"auto\">This approach relies on\u00a0<\/span><b><span data-contrast=\"auto\">total working days<\/span><\/b><span data-contrast=\"auto\">\u00a0rather than calendar months.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><b><span data-contrast=\"auto\">Typical working days in Malaysia (2024):<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"28\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">5-day workweek \u2192\u00a0<\/span><b><span data-contrast=\"auto\">260 days\/year<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"28\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">6-day workweek \u2192\u00a0<\/span><b><span data-contrast=\"auto\">313 days\/year<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><b><span data-contrast=\"auto\">Formula<\/span><\/b><span data-contrast=\"auto\">:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><b><span data-contrast=\"auto\">Prorated Bonus = (Days Worked \u00f7 Total Working Days in Bonus Period) \u00d7 Full Bonus<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ul class=\"wp-block-list\"><!-- \/wp:paragraph --><\/ul>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1595 size-full\" src=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/workday-calculation.jpg\" alt=\"workday calculation\" width=\"1111\" height=\"279\" srcset=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/workday-calculation.jpg 1111w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/workday-calculation-300x75.jpg 300w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/workday-calculation-1024x257.jpg 1024w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/workday-calculation-768x193.jpg 768w\" sizes=\"auto, (max-width: 1111px) 100vw, 1111px\" \/><\/p>\r\n<!-- \/wp:list -->\r\n\r\n<!-- wp:table \/-->\r\n\r\n<!-- wp:paragraph -->\r\n<p><span data-contrast=\"auto\">This calculation produces the most precise figure as it\u00a0takes into account\u00a0weekends, holidays, and unpaid leave.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2><strong>How to Handle Bonuses for Employees Who Leave\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">Companies often limit bonus payments to employees on the payroll when bonuses are distributed.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">Still, some companies provide\u00a0<\/span><b><span data-contrast=\"auto\">partial bonuses<\/span><\/b><span data-contrast=\"auto\">\u00a0to employees who quit before bonus time, as a nice gesture. In these situations, HR applies the same prorated formula \u2014 worked out up to the\u00a0employee\u2019s\u00a0<\/span><b><span data-contrast=\"auto\">final day on the job.<\/span><\/b><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2><strong>EPF, SOCSO &amp; PCB Deductions on Bonuses\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">Performance and prorated bonuses fall under Additional Wages (AW) in Malaysian payroll rules.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><strong>This means they get taxed for:\u00a0<\/strong><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"29\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">EPF (Employees Provident Fund)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"29\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">SOCSO (Social Security Organisation)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"29\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">EIS (Employment Insurance System)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"29\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">PCB (Potongan\u00a0Cukai\u00a0Bulanan\u00a0\/ Monthly Tax Deduction)<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><strong>Example \u2013 EPF Deduction on Bonus:\u00a0<\/strong><\/p>\r\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1596 size-full\" src=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/epf-dedcution-from-bonus.jpg\" alt=\"epf dedcution from bonus\" width=\"860\" height=\"392\" srcset=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/epf-dedcution-from-bonus.jpg 860w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/epf-dedcution-from-bonus-300x137.jpg 300w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/epf-dedcution-from-bonus-768x350.jpg 768w\" sizes=\"auto, (max-width: 860px) 100vw, 860px\" \/><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:table \/-->\r\n\r\n<!-- wp:paragraph -->\r\n<p><b><span data-contrast=\"auto\">Note<\/span><\/b><span data-contrast=\"auto\">: Always check EPF&#8217;s official contribution table to get the latest rates.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<!-- \/wp:paragraph -->\r\n\r\n<!-- wp:image {\"id\":958,\"sizeSlug\":\"large\",\"linkDestination\":\"none\"} -->\r\n<figure class=\"wp-block-image size-large\"><img loading=\"lazy\" decoding=\"async\" width=\"1024\" height=\"299\" class=\"wp-image-958\" src=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Common-Mistakes-in-PCB-Calculations-1024x299.jpg\" alt=\"\" srcset=\"https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Common-Mistakes-in-PCB-Calculations-1024x299.jpg 1024w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Common-Mistakes-in-PCB-Calculations-300x88.jpg 300w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Common-Mistakes-in-PCB-Calculations-768x224.jpg 768w, https:\/\/www.info-tech.com.my\/blog\/wp-content\/uploads\/2025\/04\/Common-Mistakes-in-PCB-Calculations.jpg 1379w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/figure>\r\n<p><span data-contrast=\"auto\">When you avoid these mistakes, you keep your employees&#8217; trust and follow the rules.<\/span><span data-ccp-props=\"{&quot;201341983&quot;:0,&quot;335559739&quot;:0,&quot;335559740&quot;:240}\">\u00a0<\/span><\/p>\r\n<h2><strong>How HRMS Software Makes Bonus Management Easy\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">Tracking prorations and deductions by hand takes a lot of time.\u00a0<\/span><b><span data-contrast=\"auto\">Info-Tech&#8217;s\u00a0<\/span><\/b><a href=\"https:\/\/www.info-tech.com.my\/hrms-software\"><b><span data-contrast=\"none\">HRMS<\/span><\/b><\/a><b><span data-contrast=\"auto\">\u00a0&amp;\u00a0<\/span><\/b><a href=\"https:\/\/www.info-tech.com.my\/payroll-software\"><b><span data-contrast=\"none\">Payroll Software<\/span><\/b><\/a><b> <\/b><span data-contrast=\"auto\">handles every\u00a0step :<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"30\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Figures out\u00a0<\/span><b><span data-contrast=\"auto\">performance and prorated bonuses<\/span><\/b><span data-contrast=\"auto\">\u00a0on its own\u00a0<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"30\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Updates\u00a0<\/span><b><span data-contrast=\"auto\">EPF, SOCSO,\u00a0<\/span><\/b><span data-contrast=\"auto\">and<\/span><b><span data-contrast=\"auto\">\u00a0PCB<\/span><\/b><span data-contrast=\"auto\">\u00a0rates without help<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"30\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Puts bonuses right into monthly pay stubs<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"30\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"4\" data-aria-level=\"1\"><span data-contrast=\"auto\">Creates payroll reports ready for audits<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"30\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"5\" data-aria-level=\"1\"><span data-contrast=\"auto\">Cuts down on mistakes and saves time each pay period<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">When bonus management goes digital, HR teams can put more effort into planning and keeping\u00a0employees\u00a0happy \u2014 not just dealing with spreadsheets.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><a href=\"https:\/\/www.info-tech.com.my\/contact-us?utm_source=blog&amp;utm_campaign=performance-bonuses-and-prorated-bonuses\"><b><span data-contrast=\"none\">Set Up a Free Demo<\/span><\/b><\/a><span data-contrast=\"auto\">\u00a0to check out how Info-Tech ensures bonus processing stays\u00a0accurate\u00a0and follows the rules.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2><strong>To Sum Up\u00a0<\/strong><\/h2>\r\n<p><span data-contrast=\"auto\">Performance and prorated bonuses play a role in ensuring fairness motivating\u00a0staff, and\u00a0linking rewards to effort.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<p><span data-contrast=\"auto\">By learning how to calculate them \u2014 and by using HRMS tools to make the process automatic \u2014 your company can:<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"31\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"1\" data-aria-level=\"1\"><span data-contrast=\"auto\">Comply with\u00a0EPF, SOCSO &amp; PCB regulations<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"31\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"2\" data-aria-level=\"1\"><span data-contrast=\"auto\">Prevent payroll mistakes<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<ul>\r\n<li data-leveltext=\"\uf0b7\" data-font=\"Symbol\" data-listid=\"31\" data-list-defn-props=\"{&quot;335552541&quot;:1,&quot;335559685&quot;:720,&quot;335559991&quot;:360,&quot;469769226&quot;:&quot;Symbol&quot;,&quot;469769242&quot;:[8226],&quot;469777803&quot;:&quot;left&quot;,&quot;469777804&quot;:&quot;\uf0b7&quot;,&quot;469777815&quot;:&quot;hybridMultilevel&quot;}\" data-aria-posinset=\"3\" data-aria-level=\"1\"><span data-contrast=\"auto\">Keep staff content and driven<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/li>\r\n<\/ul>\r\n<p><span data-contrast=\"auto\">Simply put clever payroll = satisfied teams + correct compliance.<\/span><span data-ccp-props=\"{}\">\u00a0<\/span><\/p>\r\n<h2><strong>Frequently Asked Questions:<\/strong><\/h2>\r\n<p><!-- \/wp:paragraph --><\/p>\r\n<div class=\"container\">\r\n<div class=\"mi-faq\">\r\n<div id=\"accordionExample\" class=\"accordion\">\r\n<div class=\"card\">\r\n<div id=\"headingOne\" class=\"card-head\">\r\n<div class=\"acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapseOne\" aria-expanded=\"true\" aria-controls=\"collapseOne\">\r\n<h4 class=\"Positionheader\"><span class=\"TextRun SCXW233695362 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW233695362 BCX8\">What does a prorated bonus mean?\u00a0<\/span><\/span><\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapseOne\" class=\"collapse show\" aria-labelledby=\"headingOne\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p><span class=\"TextRun SCXW114490906 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW114490906 BCX8\">A prorated bonus refers to a part of the performance bonus adjusted based on an employee&#8217;s duration of work during the bonus period.<\/span><\/span><\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"card\">\r\n<div id=\"headingtwo\" class=\"card-head\">\r\n<div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsetwo\" aria-expanded=\"false\" aria-controls=\"collapsetwo\">\r\n<h4 class=\"Positionheader\"><span class=\"NormalTextRun SCXW112483554 BCX8\">Are employers\u00a0<\/span><span class=\"NormalTextRun SCXW112483554 BCX8\">required<\/span><span class=\"NormalTextRun SCXW112483554 BCX8\">\u00a0to pay bonuses?\u00a0<\/span><\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapsetwo\" class=\"collapse\" aria-labelledby=\"headingtwo\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p><span class=\"TextRun SCXW217688077 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW217688077 BCX8\">No. Companies have discretion over performance bonuses unless contracts or collective agreements specify otherwise.<\/span><\/span><\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"card\">\r\n<div id=\"headingthree\" class=\"card-head\">\r\n<div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsethree\" aria-expanded=\"false\" aria-controls=\"collapsethree\">\r\n<h4 class=\"Positionheader\"><span class=\"TextRun SCXW28754106 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW28754106 BCX8\">How do you calculate a prorated bonus?<\/span><\/span><\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapsethree\" class=\"collapse\" aria-labelledby=\"headingthree\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p><span class=\"TextRun SCXW64184511 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW64184511 BCX8\">Apply this formula: (Worked Months or Days \u00f7 Total Bonus Period) \u00d7 Full Bonus Amount.<\/span><\/span><\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"card\">\r\n<div id=\"headingfour\" class=\"card-head\">\r\n<div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsefour\" aria-expanded=\"false\" aria-controls=\"collapsefour\">\r\n<h4 class=\"Positionheader\"><span class=\"TextRun SCXW61497833 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW61497833 BCX8\">Are bonuses subject to EPF, SOCSO, and PCB deductions?<\/span><\/span><\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapsefour\" class=\"collapse\" aria-labelledby=\"headingfour\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p><span class=\"TextRun SCXW183612152 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW183612152 BCX8\">Yes. The law classifies all bonuses as Additional Wages (AW) making them subject to statutory deductions.<\/span><\/span><\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<div class=\"card\">\r\n<div id=\"headingfour\" class=\"card-head\">\r\n<div class=\"collapsed acc-arrow\" data-toggle=\"collapse\" data-target=\"#collapsefour\" aria-expanded=\"false\" aria-controls=\"collapsefour\">\r\n<h4 class=\"Positionheader\"><span class=\"TextRun SCXW184695151 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW184695151 BCX8\">How can HRMS software help?\u00a0<\/span><\/span><\/h4>\r\n<\/div>\r\n<\/div>\r\n<div id=\"collapsefour\" class=\"collapse\" aria-labelledby=\"headingfour\" data-parent=\"#accordionExample\">\r\n<div class=\"card-body\">\r\n<p><span class=\"TextRun SCXW4900497 BCX8\" lang=\"EN-IN\" xml:lang=\"EN-IN\" data-contrast=\"auto\"><span class=\"NormalTextRun SCXW4900497 BCX8\">It\u00a0<\/span><span class=\"NormalTextRun AdvancedProofingIssueV2Themed SCXW4900497 BCX8\">has the ability to<\/span><span class=\"NormalTextRun SCXW4900497 BCX8\"> automate calculations, ensure EPF &amp; PCB accuracy, and integrate bonuses into payroll processing.<\/span><\/span><\/p>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<\/div>\r\n<!-- \/wp:paragraph -->\r\n\r\n<script type=\"application\/ld+json\">\r\n{\r\n  \"@context\": \"https:\/\/schema.org\",\r\n  \"@type\": \"FAQPage\",\r\n  \"mainEntity\": [{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"What does a prorated bonus mean?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"A prorated bonus refers to a part of the performance bonus adjusted based on an employee\u2019s duration of work during the bonus period.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"Are employers required to pay bonuses?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"No. Companies have discretion over performance bonuses unless contracts or collective agreements specify otherwise.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"How do you calculate a prorated bonus?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"Apply this formula: (Worked Months or Days \u00f7 Total Bonus Period) \u00d7 Full Bonus Amount.\"\r\n    }\r\n  },{\r\n    \"@type\": \"Question\",\r\n    \"name\": \"Are bonuses subject to EPF, SOCSO, and PCB deductions?\",\r\n    \"acceptedAnswer\": {\r\n      \"@type\": \"Answer\",\r\n      \"text\": \"Yes. 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Understand bonus calculations, EPF deductions, and tax effects.\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.info-tech.com.my\/blog\/understanding-performance-bonuses-and-prorated-bonuses\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Performance and Prorated Bonuses in Malaysia\" \/>\n<meta property=\"og:description\" content=\"Discover how performance and prorated bonuses work in Malaysia. 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