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Payroll accuracy is more than getting salaries paid on time. A small error in wage classification, statutory contributions, overtime calculations or tax deductions can repeat month after month, potentially resulting in back payments, penalties, compliance issues and loss of employee trust. For payroll, HR and finance professionals, having a clear and reliable payroll process is therefore essential.

This practical two-day programme equips participants with the knowledge and hands-on skills needed to manage Malaysian payroll accurately and confidently, from monthly salary calculations and statutory contributions to payroll tax administration, employee movements, payroll controls and compliance. Participants will learn how to classify different pay elements, calculate incomplete-month salary and overtime, administer statutory obligations including EPF, SOCSO, EIS, SKBBK and HRD levy requirements, and manage PCB/MTD and other payroll-related deductions.

The programme combines guided briefings, hands-on calculations and realistic Malaysian payroll cases, with an emphasis on understanding the calculation first before relying on systems or automated tools. Participants will also use HRLah.my, a Malaysian HR and payroll research companion, to verify payroll requirements against their governing provisions. By the end of the programme, participants will be better equipped to identify payroll errors, strengthen internal controls and manage monthly payroll processes with greater accuracy, consistency and compliance.

What Will You Learn?

By the end of this programme, participants will be able to:

• Map the complete monthly payroll cycle from cut-off and data input through calculation, approval, payment and statutory submission.
• Classify salary, allowances, incentives, bonuses, reimbursements and other pay elements correctly for payroll purposes.
• Calculate monthly salary, incomplete-month pay, unpaid leave, arrears, adjustments and payroll corrections accurately.
• Calculate ordinary rate of pay and hourly rate of pay for overtime, rest-day and public-holiday payments.
• Determine employee coverage and administer EPF, SOCSO, EIS, SKBBK and HRD levy requirements.
• Manage PCB/MTD administration, including relevant employee declarations, tax directives and payroll deductions.
• Process new joiners, leavers, final payments, outstanding claims and payroll corrections appropriately.
• Apply payroll validation, reconciliation, approval and segregation-of-duties controls.
• Maintain accurate payroll records and protect confidential employee information under appropriate data-protection practices.
• Use AI-supported tools such as HRLah.my to verify payroll requirements against relevant governing provisions.

Course Outline

Module 1: Payroll Framework

• Understand the payroll process from gross pay to net pay.
• Map payroll cut-off, calculation, approval, payment and submission activities.
• Clarify responsibilities across HR, payroll, finance and authorised approvers.
• Understand the Malaysian statutory landscape affecting payroll.

Module 2: Pay Elements, Wage Definitions and Lawful Deductions

• Classify salaries, allowances, incentives, commissions and reimbursements.
• Understand how wage definitions differ across statutory requirements.
• Apply lawful deductions, authorisation requirements and deduction limits.
• Manage salary advances, loans, overpayments and recovery arrangements.

Module 3: Salary, Incomplete-Month and Leave-Related Calculations

• Calculate monthly salary and incomplete-month payments.
• Process unpaid leave, no-pay days and salary adjustments.
• Manage arrears, back pay and retrospective salary changes.
• Document exceptional calculations and maintain appropriate approval trails.

Module 4: Ordinary Rate of Pay, Overtime, Rest Days and Holidays

• Determine eligibility for working-time and overtime protections.
• Calculate ordinary rate of pay and hourly rate of pay.
• Calculate overtime, rest-day and public-holiday payments.
• Identify common attendance, approval and calculation errors.

Module 5: EPF, SOCSO, EIS, SKBBK and HRD Levy Administration

• Determine statutory coverage based on employee circumstances.
• Apply current EPF, SOCSO and EIS contribution requirements.
• Understand SKBBK and HRD levy administration.
• Manage contribution deadlines, corrections and coverage exceptions.

Module 6: PCB/MTD and Payroll Tax Administration

• Understand employer responsibilities for PCB/MTD administration.
• Manage recurring and additional remuneration in payroll.
• Understand TP1, TP2 and CP38 requirements within payroll processing.
• Identify payroll items requiring additional tax attention and review.

Module 7: Joiners, Leavers, Final Pay and Corrections

• Set up new employees and validate payroll information.
• Manage resignations, terminations and final-pay calculations.
• Process outstanding payments, recoveries and payroll corrections.
• Apply appropriate payroll checklists and documentation for employee movements.

Module 8: Payroll Controls, Records, Privacy and Monthly Close

• Establish pre-payroll, calculation and post-payroll control points.
• Apply maker-checker reviews, approvals and segregation of duties.
• Perform payroll, headcount, bank-file and statutory reconciliations.
• Maintain payroll records, protect employee data and complete the monthly close.