Net Salary Calculator Malaysia
Estimate your Malaysia take-home pay after EPF, SOCSO, EIS and income tax (PCB-style) deductions.
Please enter a valid gross monthly salary and EPF rate (0–20%).
How this Malaysia net salary calculator works?
This net salary calculator estimates your take-home pay by subtracting common statutory deductions from your gross salary:
- EPF employee contribution
- SOCSO employee share
- EIS (Employment Insurance System)
- Estimated monthly income tax (similar to PCB)
Deductions included in the calculator:
- EPF – calculated from your salary using the EPF rate you enter (usually 11%).
- SOCSO – approximated as a small percentage of salary up to the wage ceiling.
- EIS – 0.2% of wages for the employee up to RM4,000 wage ceiling.
- Income tax – based on your annualised income, EPF and estimated tax reliefs applied to progressive tax brackets.
Why your net salary is lower than gross salary?
In Malaysia, employers are required to deduct EPF, SOCSO, EIS and income tax from your monthly salary. Although these deductions reduce your take-home pay, they provide:
- Retirement savings through EPF.
- Social security protection through SOCSO.
- Job loss protection through EIS.
- Income tax prepayment through PCB-style deductions.
Who should use this net salary calculator?
- Fresh graduates checking expected take-home salary.
- Employees comparing job offers.
- HR and payroll teams explaining payslips.
- Freelancers considering full-time employment.
What is the Net Salary Calculator Malaysia?
This Net Salary Calculator Malaysia helps you estimate your monthly take-home salary after deducting EPF, SOCSO, EIS and income tax (PCB-style).
It provides a realistic monthly payslip-style breakdown that shows:
EPF (employee contribution)
SOCSO + EIS
Monthly income tax
Final net salary
Bonus impact
Annual tax and reliefs
This calculator is accurate for:
Employees working in Malaysia
HR and payroll staff
Fresh graduates checking salary offers
Employers preparing payslips
Foreign workers taxed as non-residents
It uses the same structure as LHDN’s PCB system (Potongan Cukai Bulanan).
How Net Salary in Malaysia Is Calculated?
To calculate monthly take-home pay, Malaysia uses several compulsory deductions:
1. EPF Employee Contribution (11%)
EPF reduces your taxable income and is deducted monthly.
Most employees contribute 11%, but 9% is allowed.
2. SOCSO (Employee’s Share)
SOCSO protects employees under the Employment Injury Scheme.
Employee contribution is small (0.5% of salary, capped at wage ceiling).
3. EIS (Employment Insurance System)
A very small monthly contribution (0.2% of salary).
4. Income Tax (PCB-style)
Income tax is calculated using:
Annual gross income
Minus EPF contributions
Minus personal tax reliefs
Apply progressive LHDN tax brackets (0%–30%)
The result is divided into 12 months to estimate monthly tax deduction.
Your calculator already combines these rules into one easy calculation.
Malaysia Progressive Tax Rates (Residents, YA 2025)
| Chargeable Income (RM) | Tax Rate |
|---|---|
| 0 – 5,000 | 0% |
| 5,001 – 20,000 | 1% |
| 20,001 – 35,000 | 3% |
| 35,001 – 50,000 | 6% |
| 50,001 – 70,000 | 11% |
| 70,001 – 100,000 | 19% |
| 100,001 – 250,000 | 25% |
| 250,001 – 400,000 | 26% |
| 400,001 – 600,000 | 28% |
| 600,001 – 1,000,000 | 30% |
| 1,000,001+ | 30% |
Non-residents pay flat 30%.
Example: Net Salary for RM 4,000/month
1. Gross Salary
RM 4,000
2. EPF (11%)
RM 4,000 × 11% = RM 440
3. SOCSO + EIS (approx.)
≈ RM 15–RM 20 (combined)
4. Estimated Monthly Tax (PCB)
Assuming RM 9,000 reliefs → tax ≈ RM 20–RM 40 per month
RM 4,000
– RM 440 (EPF)
– RM 18 (SOCSO + EIS)
– RM 30 (Tax)
= RM 3,512 per month
Who Should Use This Net Salary Calculator?
Fresh graduates
Employees checking new job offers
HR departments preparing payslips
Employers estimating monthly payroll cost
Freelancers calculating take-home pay
Foreign workers taxed as non-residents
Anyone comparing jobs in Malaysia
FAQ – Net Salary Malaysia
1. How do I calculate net salary in Malaysia?
Net salary = Gross salary – EPF – SOCSO – EIS – monthly tax.
2. What deductions are mandatory in Malaysia?
EPF, SOCSO, EIS and income tax (if applicable).
3. Does EPF reduce taxable income?
Yes — EPF reduces your annual taxable income.
4. Do Malaysians pay tax every month?
Most employees pay monthly PCB tax based on estimated annual tax.
5. How is SOCSO calculated?
SOCSO uses a contribution table with wage ceilings; employee share is small (approx. 0.5%).
6. What is EIS?
The Employment Insurance System (EIS) helps employees who lose jobs; employee pays 0.2%.
7. Do bonuses affect net salary?
Yes — bonus increases annual income → increases tax → affects monthly PCB.
8. What is the take-home salary for RM 3,000?
Typically RM 2,650–RM 2,750 depending on EPF and SOCSO.