What qualifies as a Benefit in Kind?
BIK covers non-cash benefits that cannot be converted to cash. Common examples include:
- Transport: company car, driver, petrol (for personal or official use)
- Communications: broadband, telephone, or mobile plan paid by the employer
- Household: domestic help, gardener, furnishings, utilities
- Health and leisure: medical, dental, recreational club membership
- Other: leave passage (local or overseas), child care, garments
JustLogin uses a catalogue of approximately 30 LHDN-aligned BIK types for Malaysia. When adding BIK to an employee's schedule, you select from this predefined list — custom types cannot be created.
Note on Living Accommodation (VOLA) — Value of Living Accommodation is a legally separate category from BIK in Malaysia. JustLogin tracks and reports VOLA independently. It sits in its own block on the employee's profile and appears on a separate line of the EA Form, below the BIK section. |
Two ways to configure the Benefits in Kind
Depending on how a benefit is delivered, there are two configuration methods in JustLogin:
- Pay element tax code — for benefits disbursed through payroll as a pay element.
- Employee BIK — for pure non-cash benefit values recorded directly on the employee's profile.
Option 1: Tag a pay element with tax code B3
If a benefit is processed through payroll (for example, an employer-paid phone bill run as a pay element), tag the pay element so the system reports it as BIK for tax purposes.
- Go to Payroll → Configuration → Payroll tab → Pay elements sub-tab.
- You can either create a new Pay element or open the existing element by clicking the eye icon.
- In the Tax Code field, select B3 Benefits in Kind. For living accommodation, select B4 Value of Living Accommodations instead.
- Save the pay element.
- The Tax Code field is not available on Reimbursement-type pay elements.
- BIK amounts tagged this way are excluded from EPF, SOCSO, and EIS contribution calculations.
Option 2: Add BIK to the employee's schedule
For non-cash benefits where no payment is made through payroll, record the benefit value directly on the employee's profile.
- Go to Payroll → Administration → Employee Pay Details and open the employee’s record by clicking the pencil icon under the Actions column.
- On the Update Pay Information page, scroll down to the Other Pay Element section.
- Click the Benefit-In-Kind toggle to enable the BIK option.
- Select the appropriate benefit type from the dropdown based on the LHDN-aligned catalogue.
- Enter the Amount, which represents the notional monthly value of the benefit.
- Tick Active to enable the BIK entry.
- If the benefit is provided every month, also tick Recurring. See the section below for more information.
- Click Add to save the BIK entry.
- To make changes, click the pencil icon under the Actions column. To remove the entry, click the Trashbin icon.
- Click Save to save your changes.
One-time vs Recurring BIK
Each BIK entry on the employee's schedule can be configured as a one-time benefit or a recurring one. The difference is controlled by the Recurring checkbox, which is only available when Active is also ticked.
| Setting | One-time BIK | Recurring BIK |
|---|---|---|
| Checkboxes | Active only | Active and Recurring |
| Included in payrun | The next payrun only | Every payrun, automatically |
| After payrun approval | Automatically deactivated — no further action needed | Remains active; included in all future payruns |
| Best for | Single benefit events (e.g. a one-off benefit provided during a relocation) | Ongoing benefits (e.g. a monthly company car or broadband plan) |
| To stop it | Nothing required — it deactivates itself after approval | Manually untick Active or Recurring on the employee's BIK schedule |
How Recurring works — Recurring BIK does not run on a timer or a fixed date range. Each time a payrun is created, the system picks up all Active BIK entries for those employees and includes them in the payrun. After approval, entries without Recurring are switched off automatically; entries with Recurring remain active and are included in every subsequent payrun indefinitely. To stop a recurring benefit, you must untick it manually on the employee's profile. |
How BIK affects payroll calculations
When a payrun is processed, BIK is handled as follows:
- PCB/MTD tax: BIK amounts are added to the employee's taxable income for the month. Applicable PCB tax exemptions for specific benefit types are applied automatically.
- Statutory contributions: BIK is excluded from EPF, SOCSO, and EIS calculations — no additional statutory contributions are generated.
- Cash payment: BIK does not result in any additional cash payment to the employee. It affects tax only.
Where BIK appears
EA Form
At year end, BIK is reported on Part B of the EA Form:
- A Benefits in Kind line lists the relevant benefit types as a description.
- A separate Value of Living Accommodation line appears directly below.
- Both values roll into the employee's total gross remuneration figure.
BIK data also flows into the relevant tax-clearance forms (CP21, CP22, CP22A, and CP22B) where applicable.
BIK Report
The BIK Report is available under your Malaysia statutory reports. It only reflects approved payruns and can be exported to Excel or printed. A Filter by BIK type dropdown is available in both views.
| View | What it shows |
|---|---|
| Yearly | One row per employee, with columns for January through December plus a Total. Expandable to show which benefit types made up each month's figure. |
| Monthly | One column per benefit type, an Employee Total column, and a grand total row for the selected month. |
Payslip
BIK appears in a dedicated block on the payslip. However, the payslip BIK block is driven by pay element flags (Option 1), not by the employee BIK schedule (Option 2).
Please take note that when Benefits in Kind are configured as a pay element, they are typically treated as benefits disbursed as a payment. Since they are configured as a pay element, the amount will be recorded on the payslip for the month in which it was processed and will also be reflected in other payroll reports as a regular pay element.
If you have added BIK amounts via the employee schedule, those values are included in the PCB/MTD tax calculation but do not appear as a separate line on the payslip.
Employee assignment and mid-year migrations
- Assignment: BIK entries are added one employee at a time on the Employee Pay Info screen. Bulk import or mass-assignment for BIK is not currently available.
- Mid-year migrations: If you are onboarding employees mid-year and need to bring in prior BIK balances, use the Malaysia tax opening balance feature rather than adding historical entries to the BIK schedule. BIK assignments take effect from the payrun in which they are added and cannot be applied retroactively to past payruns.