“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 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.

With effective from 1 January 2013, overtime allowance, allowances (variable amount paid monthly) and commission (variable amount paid monthly) are categorised as normal remuneration.

Only allowance and commission which not paid monthly are categorised as additional remuneration.

ADDITIONAL 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:

1. i. bonus/incentive
2. ii. arrears of salary or any other arrears paid to an employee
3. iii. employee‟s share option scheme (if employee opts for MTD deduction)
4. iv. tax borne by employer
5. v. gratuity
6. vi. compensation for loss of employment
7. vii. ex-gratia
8. viii. director‟s fee (not paid monthly)
9. ix. commissions (not paid monthly)
10. x. allowances (not paid monthly)
11. xi. any other payment in addition to normal remuneration for current month