Overriding Statutory Contribution Amounts in Malaysia Payroll

Malaysia payroll automatically calculates statutory contributions — EPF, SOCSO, EIS, PCB, HRDF, and SKBBK — using the latest government-gazetted rates and tables. The Statutory Items Editable feature is an optional company setting that lets a payroll admin manually override these system-calculated amounts on a per-employee, per-month basis when a specific situation requires it.

When Should You Use This Feature?

Common scenarios where you may need to override a statutory amount include:

• Voluntary additional EPF: An employee has agreed to contribute above the standard rate.
• Mid-year PCB adjustment: A tax directive or amendment requires a change to monthly tax deductions.
• Exemption: An employee is exempt from a particular statutory item and the contribution needs to be set to zero.
• One-off correction: Fixing a discrepancy before finalising a payrun.

Statutory Items Covered

You can enable overrides for any combination of the following six statutory schemes:

Part 1 – Enable the Feature (One-Time Company Setup)

A payroll admin must turn on this setting at the company level before any overrides can be entered.

1. Go to Payroll Configuration.
2. Click the General tab then Configuration sub-tab.
3. Scroll to the Statutory Contribution Calculation section.
4. Select the radio button labelled Editable statutory contribution (the default is System-computed amount).
5. Tick the checkboxes for each statutory item you want to allow overrides on — you can select any combination.
6. Click Submit.

Part 2 – Enter Override Amounts (Per Employee, Per Month)

Once the feature is enabled, you can enter override amounts for individual employees each pay period.

1. Go to the Administration tab.
2. Go to Employee Pay Details tab.
3. Select the employee you want to update by clicking the pencil icon under actions column.
4. On the Update Pay Information page, at the bottom of the pay elements in Deductions area, click the Manage Statutory Contribution Overrides button.
5. On the Statutory Contribution Override page, use the date picker to select the pay period (month and year).
6. A grid displays each employee with columns for the enabled statutory items, including both employee and employer portions where applicable.
7. Enter your override amounts directly in the grid.
8. Click Update (for selected employees) or Update All.
9. The you will receive a confirmation message.

Helpful Tools for Managing Overrides

• Fetch Previous Month: Click this button to load the prior month's override values as a starting point — useful when most overrides remain the same month to month. Note that this only pre-fills the screen; you must still click Update to save the values.
• Bulk CSV Import: Download the CSV template, fill in override amounts in a spreadsheet, and import the file back — ideal when you need to override amounts for many employees at once.

Key Considerations Before Using This Feature

• No automatic carry-forward: An override entered for one month does not automatically apply to the next. Each pay period requires its own override entry.
• Lock after payrun: Once a payrun is finalised for a pay period, overrides for that period cannot be reset. Enter all overrides before running payroll.
• Audit trail: The system records who created and last modified each override entry, supporting internal controls and review.

How Does It Look Like When You Run the Payroll?

.When the payroll is run, it will follow the amounts that have been manually entered on the Statutory Contribution Override page.

If any changes need to be made after the payroll has been run, you will need to reject the payroll, update the amount on the Statutory Contribution Override page, and then run the payroll again to capture the revised amount.