Fair Share Contribution with Tax Benefit

Below is a PAYE Calculation Checklist including the Fair Share Contribution where the Tax Benefit applies.
Please refer to the respective Illustrations, which provide a detailed breakdown of the calculation.
The illustration steps indicate the order in which the calculations and figures should be verified.

→ Check the Pay Period: In this example, the PAYE Calculation Checklist is for the month of February 2026
→ Check the section “Your PAYE Particulars” : In this example, the employee has submitted an EDF in August 2025 and enjoys a tax benefit (when his tax liability is borne by his employer). This tax benefit is treated as a fringe benefit
→ Check the Emoluments for the month, for example: Salary
→ Check the Total emoluments paid in previous months , which in this example, it refers to the emoluments from August 2025 to January 2026, since the PAYE Calculation Checklist is for the month of February 2026.

Verification of Tax benefit

→ Manually calculate the emoluments and chargeable income (exclusive of tax benefit)

Excel illustration

Excel illustration Tax PAYE calculation (exclusive of tax benefit)

PAYE Calculation Checklist illustration Step 3

Excel illustration Tax FSC calculation (exclusive of tax benefit)

PAYE Calculation Checklist illustration Step 4

Excel illustration Total Tax (PAYE and FSC) exclusive of tax benefit

→ Use the Total Tax charged (exclusive of tax benefit) to verify the additional tax (PAYE and FSC) payable on the tax benefit:
→ That additional tax payable, tax borne by the employer, becomes itself a tax benefit on which the additional tax payable is calculated again. The process is repeated until the additional tax payable is near zero

Excel illustration Tax charged on PAYE benefit