Note 1: Why shift allowance increases PCB
For PCB (Monthly Tax Deduction) purposes, additional wages refer to any payment made on top of your normal basic salary.
Shift allowance is treated as an additional taxable wage because it:
Is paid in addition to basic salary
Forms part of chargeable income
Is not exempt under any tax-free allowance category
As a result, the shift allowance amount is included in the monthly remuneration and may cause the PCB amount to increase.
This treatment is in line with PCB guidelines, which require all taxable allowances to be added when calculation monthly PCB.
Note 2: Alternative treatment based on tax advice
The above explanation reflects the general tax treatment of shift allowance.
However, if you have been advised by your tax consultant to treat the shift allowance as a fixed (normal) wage instead of a variable wage, you may:
Set the wage type to 'F', and
Enter the amount under the normal allowance input.
Note: Please follow your tax advisor's recommendation if it differs from the general guideline above.