To ensure Employment Insurance System (EIS) contributions are calculated correctly when overtime (OT) is included, you must first configure the OT statutory settings. Once the setup is completed, the system will automatically calculate EIS based on basic pay or basic pay with OT, according to the wage range. Follow the steps below to set up and understand the calculation.
Step 1: Set Up EIS for Overtime Calculations
Go to Settings.
Under Payroll Settings, select Payroll Tables Maintenance Setting.
Select the Overtime Table and click Setup.
In Table 1, ensure EIS is ticked for all 6 OT calculation rates.
Click Save to complete the setup.
Note:
Only Table 1 controls statutory calculations (EPF, SOCSO, EIS, TAX & HRD).
This setup applies universally to OT Tables 1 to 6.
Step 2: Process Payroll
Run the payroll process as usual.
Verify that EIS contributions are calculated correctly.
Step 3: Sample EIS Calculation (With and Without OT)
Employee Details
Basic Pay: RM1,600.00
Default OT Formula:
Basic Pay × 12 months ÷ 2,496 hours per year
A. EIS Based on Basic Pay Only
Wage: RM1,600.00
Go to Settings → Payroll Settings → Statutory / Tax Tables Maintenance → EIS Table
Wage range: RM1,500.01 – RM1,600.00
EIS Contribution: RM3.10 (Employee & Employer)
B. EIS Based on Basic Pay + OT
OT Rate: 1,600 × 12 ÷ 2,496 = RM7.69 per hour
OT Pay: 7.69 × 1.5 × 3 hours = RM34.62
Total Wage: 1,600.00 + 34.62 = RM1,634.62
Go to the EIS Table
Wage range: RM1,600.01 – RM1,700.00
EIS Contribution: RM3.30 (Employee & Employer)
Important: EIS contribution amounts will vary based on your selected setup and the employee’s wage range. Please ensure all payroll and statutory settings are correctly configured before processing payroll.