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CSG on End Of Year Bonus

As from 01 September 2021, the provisions of the Social Contributions and Social Benefits Act 2021 shall apply as follows:

  • Prescribed Bonus: Where an end of year bonus prescribed under an enactment is paid to a participant, the bonus shall be treated separately as remuneration for an additional month and the participant and the employer shall, in respect of that additional month, pay the social contribution at the appropriate rate.
  • As per the MRA, CSG is applicable on the basic salary component of the end of year bonus of the employee
  • Below are illustrations of the calculation of the CSG on the EYB

CSG on End Of Year Bonus where EYB is paid at Mid-December

(Payments and deductions are cumulated from January to December together with December’s payroll transactions. End Of Year Bonus is paid on one-twelfth of the cumulated EYB earnings)

  • After the EYB Wizard is completed and Temporary Calculation performed, go to Payroll checklist
  • Step 1: Click Payroll Checklist

  • Step 2: Double-Click CSG on EYB Detailed
  • Step 3: Click preview on the toolbar
  • Below is an example of the EYB detailed checklist at Mid-December with CSG calculation details

  • Below is an example of the detailed checklist at Mid-December

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CSG on End Of Year Bonus where EYB is paid in two parts: First part at Mid-December and Second part with December's payroll

(Payments and deductions are cumulated to calculate EYB. The First part of the EYB is calculated on one-eleventh of the total cumulated EYB earnings from January to November. The Second part of the EYB is calculated on the total cumulated EYB earnings from January to December minus the first part of the End of Year Bonus amount.)

  • After the EYB Wizard of Mid-December is completed and Temporary Calculation performed, go to Payroll checklist
  • Step 1: Click Payroll Checklist
  • Step 2: Double-Click CSG on EYB Detailed
  • Step 3: Click preview on the toolbar
  • Below is an example of the EYB detailed checklist at Mid-December with CSG calculation details

  • Below is an example of the detailed checklist for the first part at Mid-December

  • After Mid-December is closed and Temporary calculation performed for December payroll
  • Step 1: Click Payroll Checklist
  • Step 2: Double-Click CSG on EYB Detailed
  • Step 3: Click preview on the toolbar
  • Below is an example of the EYB detailed checklist at December with CSG calculation details

  • Below is an example of the detailed checklist for the second part with December payroll

CSG on End Of Year Bonus where EYB is paid with December's payroll

(Payments and deductions are cumulated from January to December this year. End of Year Bonus is calculated on one-twelfth of the cumulated amount)

CSG on End Of Year Bonus where EYB amount is manually calculated and input for a leaver


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