2.29 How to classified to PCB or PCB A?

Where an employee receives an additional remuneration other than normal remuneration, the amount of tax to be deducted

and paid in that month shall be calculated according to the Additional Remuneration Formula.

“Remuneration” means monthly fixed remuneration paid to an employee whether the amount is fixed or variable as stated in

the employment contract written or otherwise.

If the employee has no monthly salary and only receives a commission, the commission paid is considered as

remuneration.

If the monthly salary is paid on a daily or hourly basis, the total monthly salary paid is considered as remuneration.

If the monthly salary changes due to the change in currency values, the total monthly salary paid is also considered as

remuneration.

“Additional remuneration” means any payment paid to an employee either in one lump sum or periodical or in arrears or

non fixed payment or any additional payment to a current month’s normal remuneration.

Such additional remuneration includes:

i. Overtime Allowance (Beginning 01 Jan 2013 is classified as Normal Remuneration)

ii. Bonus/Incentive

iii. arrears of salary or any other arrears paid to an employee

iv. employee’s share option scheme (if employee opts for MTD deduction)

v. tax borne by employer

vi. gratuity

vii. compensation for loss of employment

viii. ex-gratia

ix. director’s fee (not paid monthly)

x. commissions (not paid monthly)

xi. allowances (not paid monthly)

xii. any other payment in addition to normal remuneration for current month