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