Salary Calculator
Calculate net salary with country-specific tax and deduction algorithms.
Enter your salary details and click Calculate to see net pay.
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Calculate net salary with country-specific tax and deduction algorithms.
Enter your salary details and click Calculate to see net pay.
Explore our full suite of free online calculators.
For a single Malaysian employee earning RM 5,000/month with no additional reliefs: EPF (11%) = RM 550, SOCSO = RM 24.25, EIS = RM 10.00, PCB (estimated) ≈ RM 56. Net take-home: approximately RM 4,360. This means roughly 12.8% of your gross salary goes to deductions. The percentage increases as salary rises because PCB becomes more significant in higher income brackets.
Mandatory deductions for Malaysian employees: EPF (11% of salary), SOCSO (based on wage bracket), EIS (0.2% capped at RM 5,000 salary), and PCB (income tax, calculated based on taxable income). Some employers also deduct for union fees, cooperative contributions, or salary advances if you have opted in. All four mandatory deductions are required by law and cannot be avoided — however, EPF voluntary excess contributions and tax relief claims can reduce PCB.
Under the Employment Act 1955 (for employees earning up to RM 4,000/month), overtime rates are: 1.5× hourly rate for work beyond normal hours on a working day, 2.0× hourly rate for work on a rest day (up to half day, then 2.0× for subsequent hours), and 3.0× hourly rate for work on a public holiday. Hourly rate = Monthly Salary ÷ 26 days ÷ 8 hours. For example, RM 3,000 salary = RM 14.42/hour, so OT on a normal day = RM 21.63/hour.
PCB (Potongan Cukai Berjadwal) is the monthly income tax deduction taken directly from your salary. It is calculated using the PCB schedule published by LHDN (Inland Revenue Board). The calculation considers your monthly taxable income (gross salary minus EPF contribution, up to RM 4,000 relief, and other reliefs), then applies the progressive tax rates. PCB is essentially an advance payment toward your annual income tax — any overpayment is refunded when you file your annual tax return.
Legitimate ways to reduce PCB: (1) Maximize EPF contributions — contributions above the mandatory 11% are tax deductible up to RM 4,000/year (combined with life insurance relief), (2) Claim all eligible personal reliefs (self, spouse, children, parents' medical, books, sports equipment, etc.) by submitting TP1 form to your employer, (3) Contribute to PRS (Private Retirement Scheme) with RM 3,000/year tax relief, (4) SSPN education savings with RM 8,000/year tax relief.
Basic salary is your base pay excluding any allowances, OT, bonuses, or commissions. Gross salary includes all monetary compensation before deductions (base + fixed allowances + variable pay). Net salary (take-home pay) is what you receive after all mandatory deductions (EPF, SOCSO, EIS, PCB) and any voluntary deductions. When comparing job offers, compare gross salary to gross salary — benefits and allowances vary significantly between employers.
Bonuses are added to your monthly income for PCB calculation in the month they are paid. This typically pushes you into a higher PCB bracket for that month, meaning a larger-than-usual deduction. For example, if your normal monthly PCB is RM 56 and you receive a RM 5,000 bonus, the PCB for that month might jump to RM 600+. This is normal — the total annual tax is calculated correctly when you file your tax return, and any overpayment from bonus months is refunded.
SOCSO (Social Security Organisation / PERKESO) provides two schemes: the Employment Injury Scheme (work-related accidents, commuting accidents, occupational diseases) and the Invalidity Scheme (24-hour coverage for invalidity or death from any cause). Both employer and employee contribute. Benefits include medical treatment, temporary disablement benefit, permanent disablement benefit, dependents' benefit, funeral benefit, and rehabilitation. EIS (Employment Insurance System) is separate and provides unemployment benefits.
No. EPF, SOCSO, and EIS contributions are mandatory for all eligible employees in Malaysia. EPF is mandatory for Malaysian citizens and permanent residents. SOCSO is mandatory for all employees regardless of nationality (with some exceptions for foreign domestic workers). EIS is mandatory for all employees under 60. Attempting to avoid these contributions is illegal for both employer and employee and can result in fines and legal action.
Starting May 2024, EPF contributions are split into three accounts: Account 1 (Akaun Persaraan, 75% of contribution), Account 2 (Akaun Sejahtera, 15%), and Account 3 (Akaun Fleksibel, 10%). Your total contribution (11%) has not changed — only the allocation. Account 3 allows withdrawals at any time for any purpose, but the funds earn the same dividend rate. This restructuring does not affect your monthly net pay — it only affects your ability to access EPF funds before retirement.
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Your gross salary and your take-home pay are two very different numbers. Between EPF contributions, SOCSO, EIS, and income tax deductions (PCB), a significant portion of your salary never reaches your bank account. A salary calculator shows you exactly where your money goes.
Our free salary calculator is specifically designed for Malaysian employees. Enter your monthly base salary, any allowances, bonuses, and overtime to see your complete payroll breakdown including employer and employee contributions to EPF, SOCSO, and EIS, plus the monthly PCB tax deduction. Compare net pay across different salary levels to understand the progressive impact of deductions.
Malaysian payroll deductions follow a specific order and calculation. EPF employee contribution is 11% of salary (for those under 60), SOCSO is based on a salary bracket table (up to RM 69.05 for the highest bracket), EIS is a flat 0.2% up to a salary ceiling of RM 5,000, and PCB (Potongan Cukai Berjadwal) is calculated using the monthly tax deduction table based on taxable income after reliefs and EPF deductions. Each component has its own ceiling and calculation method.
Core formula: Net Pay = Gross - EPF(employee) - SOCSO(employee) - EIS(employee) - PCB
You earn a gross salary of RM 5,000 per month. Deductions: EPF employee (11%) = RM 550, SOCSO = RM 24.25, EIS = RM 10.00, PCB (estimated for single, no dependents) = RM 56. Your net take-home pay is approximately RM 4,360. If you also receive a RM 2,000 bonus in a particular month, the PCB on the bonus month jumps significantly (bonus PCB is calculated separately), so your net that month may be lower than expected despite the extra income.
Malaysia's payroll system is unique with mandatory contributions to EPF (11% employee + 13% employer for salaries up to RM 5,000), SOCSO (Employment Injury Scheme + Invalidity Scheme), EIS (Employment Insurance System), and PCB income tax. The HRDF levy applies to employers in certain industries. Employment Act 1955 governs working hours, overtime rates, and leave entitlements for employees earning up to RM 4,000/month. The minimum wage is currently RM 1,700/month nationwide.
Be aware of these common mistakes: