Human Resources
PCB (MTD)
Definition
PCB is Potongan Cukai Bulanan, or Monthly Tax Deduction, the income tax a Malaysian employer deducts from an employee's pay each month and remits to LHDN.
How does PCB work in payroll?
The employer works out PCB from the employee's taxable pay and reliefs using the method set by LHDN, deducts it from wages and pays it to LHDN by the due date. PCB is a prepayment, and the employee's final tax is settled on their annual return.
What PCB mistakes should employers avoid?
- Using an outdated calculation method or table.
- Missing the payment due date.
- Leaving out bonuses, allowances or benefits that are taxable.
PCB is run with EPF and SOCSO in the same payroll, as taught in Payroll Calculation and Statutory Compliance.
Where can you go next?
Courses, checks and reading on the same work.- CoursePayroll Calculation & Statutory Compliance
- CoursePayroll Processing & Reporting
- CertificationCertified Payroll Administrator (CPAD)
- Free online assessmentIs your payroll compliant? Free payroll readiness check
- GuideHow to run monthly payroll in Malaysia
- Glossary termEPF (KWSP)
- Glossary termSOCSO (PERKESO)
- Glossary termEIS (SIP)
Which sources does this page use?
Updated 20 October 2026. General information from the Certifyd team, not legal, tax or safety advice for your workplace.