Effective from January 1, 2008, a tax-free minimum living allowance is available for wage earners. Income tax payable (taxable income) is calculated after deducting MLA from the income tax.

The calculation is made on the basis of minimum wage regardless of the wage of the employee. In the calculation of the minimum living allowance, the marital status and the family composition of the employee is taken into account.

Calculation: 50% for the taxpayer, 10% for the spouse provided who is unemployed, 7.5% each for the first two dependent children, 10% for the third dependent children and 5% each for the following dependent children.