Salary & Payroll Calculator Malaysia 2026
Calculate your Malaysia salary, EPF, SOCSO, EIS, PCB deductions, and take-home pay instantly with our accurate Payroll Calculator 2026.
| Item | Rate | Amount |
|---|---|---|
| Gross Salary | — | RM 0.00 |
| Deductions | ||
| EPF | 11.0% | – RM 0.00 |
| SOCSO | Table | – RM 0.00 |
| EIS | Table | – RM 0.00 |
| PCB (Tax) | Variable | – RM 0.00 |
| Total Deductions | 0.0% | – RM 0.00 |
| Net Salary | Monthly | RM 0.00 |
Calculation Details:
- Tax Residency: —
- EPF: —
- SOCSO: Based on official PERKESO table (RM6,000 ceiling).
- EIS: Based on official PERKESO table (RM6,000 ceiling).
- PCB: Progressive tax rate (0-30%)
- Tax Reliefs (Annual): RM9,000
Disclaimer: This is an estimate based on 2026 official rates. Actual amounts may vary based on additional reliefs, allowances, and personal circumstances. Consult with HR or a tax professional for precise calculations.
Quick Calculators
What Is a Salary Calculator and Why Do You Need One?
Knowing your pay slip for the month understanding your monthly pay slip in Malaysia isn’t easy. Your gross income is the amount that you write on your offer letterdoes not always reflect the sum you deposit into your account at the bank. In between EPF contribution, SOCSO deductions, EIS premiums and PCB tax deductions significant portions of your earnings is taken out before you can even notice it.
It is a Salary Calculator Malaysia is a free online tool that can help employees and HR professionals, freelancers and employers quickly determine the exact take-home pay from a monthly gross salary. Instead of manually comparing contribution table data with tables from KWSP, PERKESO, and LHDN The calculator can do everything within seconds.
No matter if you’re a new student evaluating the first job you’ve received or a senior manager looking to compare pay packages or a business owner who manages your team’s payroll Knowing your actual monthly earnings — after all the statutory deductionsis vital to ensure accurate financial planning and budgeting as well as taxes compliance Malaysia
How Is Salary Calculated in Malaysia? The Four Mandatory Deductions Explained
Malaysian laws on payroll require four mandatory deductions from an worker’s salary per month. These deductions are controlled by different government agencies and calculated by various methods. Understanding these four aspects is the basis of effective money management in Malaysia.
1. EPF - Employees Provident Fund (Kumpulan Wang Simpanan Pekerja / KWSP)
The Employees Provident Fund, known locally as KWSP (Kumpulan Wang Simpanan Pekerja) Malaysia’s obligatory retirement savings plan. It was established as part of the Employees Provident Fund Act of 1991 It is one of the largest retirement funds in the world and is administered by the Malaysian government.
Every Malaysian employee as well as their employer is legally obliged to deposit a certain percentage of their gross monthly income to EPF. EPF account. The funds are divided into three accounts -the Akaun Persaraan (retirement), Akaun Persaraan (retirement), Akaun Sejahtera (flexible withdrawals) and Akaun FLeksibel (emergency liquidity, which was introduced by 2024).
EPF Contribution Rates for 2026:
- Malaysian citizens and permanent residents who are under 55 years old: Employer 11%, Employee 13 percent (salaries that exceed the amount of RM5,000) or 12 percent (salaries over RM5,000)
- Age 55-60 years Rate of employees drops to 5.5 percent
- Age 60 and over: EPF is optional for employees
- Non-Malaysian citizens: Employee rates is 2.2% (effective 2025 or later)
For instance when a gross pay of RM6,000 per month, an individual under 55 contributes RM660 and the employer contributes RM720 which makes the total monthly EPF savings of RM1,380.
To get the latest EPF contributions table, announcements of dividends as well as withdrawal rules, please visit this site. KWSP Official Website which is the main information source on all Employees Provident Fund information in Malaysia.
2. SOCSO - Social Security Organisation (Pertubuhan Keselamatan Sosial / PERKESO)
SOCSO which is managed by PERKESO offers two insurance options for Malaysian workers that include the Employment Injury Scheme (covering workplace injuries and occupational illnesses) in addition to the Invalidity Scheme (covering permanent disability or death that is not related with work).
SOCSO contribution amounts are determined with a banded, official contribution table and not a percentage fixed. The ceiling on salary to be paid for SOCSO contributors is at least RM6,000 per month. This was increased from RM5,000 in the month of October 2024. The employees earning more than RM6,000 contribute to the maximum limit bracket.
The most important SOCSO information for 2026:
- Employee contribution: approximately 0.5 percent of your pay per month (table-based)
- Contribution of the employer: 1.75% of your monthly salary (table-based)
- Mandatory for employees who are under 60 years old
- Employees who are 60 years old or more are exempt of SOCSO and EIS
- Self-employed people can join on their own accord in the Self-Employment Social Security Act 2017
For the entire SOCSO contributions table as well as scheme information benefits claims, as well as employer registration, visit the PERKESO official website as the primary source for all matters related to social security in Malaysia.
3. EIS- Employment Insurance System (Sistem Insurans Pekerjaan)
The Employment Insurance System (EIS) is also managed through PERKESO in accordance with the Employment Insurance System Act 2017. It offers financial aid as well as career-related support services for Malaysian people who have lost their job as a result of reductions, closure of companies or through constructive dismissal.
EIS benefits include the job Search Allowance as well as a Reduced Income Allowance Training Allowance, as well as Early Re-Employment Benefits. These make it a crucial financial protection plan between jobs.
EIS contribution details:
- The employee rate is approximately 0.2 percent of salary (table-based)
- Employer’s rate: equal to contribution of employee (0.2 percent)
- The salary ceiling is RM6,000 per month
- Employers who are eligible for the program: Malaysian citizens and permanent residents between the ages of 18 and 60.
- Foreign workers are not eligible for EIS
To learn more about your EIS benefits, verify your EIS balance. Or, to discover how you can make claims, go to this EIS webpage on PERKESO for all the complete and up-to-date information.
4. PCB - Monthly Tax Deduction (Potongan Cukai Bulanan / LHDN)
PCB (Potongan Cukai Bulanan) is the monthly deduction for income tax controlled through LHDN (Lembaga Hasil Dalam Negeri Malaysia) or The Inland Revenue Board of Malaysia. PCB is an progressive tax that is calculated according to annual amount of income that is chargeable as well as marital status, residency status, number of dependents and tax reliefs that are eligible.
Malaysia Progressive Income Tax Rates 2026 (Tax Residents):
- First RM5,000: 0%
- RM5,001 to RM20,000: 1%
- RM20,001 to RM35,000: 3%
- RM35,001 to RM50,000: 6%
- RM50,001 to RM70,000: 11%
- RM70,001 to RM100,000: 19%
- RM100,001 to RM400,000: 25%
- RM400,001 to RM600,000: 26%
- RM600,001 to RM2,000,000: 28%
- Above RM2,000,000: 30%
Residents who are not residents (fewer than 182 calendar days spent in Malaysia in a the calendar the year) are taxed 30% flat on all income derived from Malaysia, and are not eligible for individual tax relief.
Key PCB thresholds
- Employees who are single: PCB is available when the monthly earnings after EPF exceeds RM2,851.
- Employees who are married (spouse employed): Threshold rises to about RM3,851.
- Married (spouse spouse who is not employed) The additional RM4,000 per year spouse relief is available
- Every child who is under the age of 18: RM2,000 Tax relief for each child
- Standard relief for individuals Annual RM9,000 for all tax-paying residents
Muslim employees can also be able to offset PCB tax with Zakat donations on a ringgit for ringgit basis, as per LHDN rules.
If you’re looking for PCB calculation tables and e-filing information categories for tax relief, and deadlines for employer remittances go to the LHDN Malaysia -Lembaga Hasil Dalam Negeri – The Official Inland Revenue Board portal where every aspect of income tax is taken care of.
Net Salary Calculation Example: RM5,000 Monthly Gross (2026)
Single Malaysian citizen under the age of 55, working full-time and with normal individual relief only earning RM5,000 a month:
Employee’s Monthly Deductions:
- EPF (11%): RM550.00
- SOCSO (table-based): RM7.50
- EIS (table-based): RM10.00
- PCB (progressive one status): RM97.00
- Total Deductions: RM664.50
- Net Take-Home Pay: RM4,335.50
Employer’s Additional Costs:
- EPF Employer (13%): RM650.00
- SOCSO Employer (table): RM70.25
- EIS Employer: RM10.00
- Total employer contribution: RM730.25
- Total Cost to Company (CTC): RM5,730.25
How PCB RM97 was figured out:
- Monthly after EPF: RM5,000- RM550 = 4,450 RM
- Annualised: RM4,450 x 12 = RM53,400
- Individual relief less (RM9,000) Amount: RM44,400 taxable income
- Tax on the first RM5,000 tax at 0 percent = RM0
- Tax on the next RM15,000 tax at 11 percent = RM150
- Tax on the next RM15,000 tax at 3 percent = RM450
- Tax on the remaining RM9,400 at 6 per cent = RM564
- Annual tax: RM1,164/ 12 = RM97/month
Salary Deduction Reference Table - Common Malaysian Salaries (2026)
Estimates for one Malaysian citizen who is under 55, and no other reliefs over RM9,000 in individual relief.
| Gross Monthly Salary | EPF (11%) | SOCSO | EIS | PCB Tax | Net Take-Home |
|---|---|---|---|---|---|
| RM 1,500 | RM 165 | RM 2.25 | RM 3.00 | RM 0 | RM 1,329.75 |
| RM 2,000 | RM 220 | RM 3.00 | RM 4.00 | RM 0 | RM 1,773.00 |
| RM 3,000 | RM 330 | RM 4.50 | RM 6.00 | RM 0 | RM 2,659.50 |
| RM 4,000 | RM 440 | RM 6.00 | RM 8.00 | RM 0 | RM 3,546.00 |
| RM 5,000 | RM 550 | RM 7.50 | RM 10.00 | RM 97 | RM 4,335.50 |
| RM 7,000 | RM 770 | RM 9.00 | RM 12.00 | RM 295 | RM 5,914.00 |
| RM 10,000 | RM 1,100 | RM 9.00 | RM 12.00 | RM 748.50 | RM 8,130.50 |
| RM 15,000 | RM 1,650 | RM 9.00 | RM 12.00 | RM 1,850 | RM 11,479.00 |
Take note that SOCSO along with EIS are limited to the salary limit of RM6,000 for salaries over RM6,000.
Malaysia Minimum Wage 2026 - Salary Calculation at the Legal Floor
Beginning on February 1 2025, Malaysia’s minimum wage will be RM1,700 per month, which is enacted under the Minimum Wages Order 2024, and implemented by the Minimum Wages Act 2012. This is applicable across Peninsular Malaysia, Sabah, Sarawak as well as Sarawak, Sabah and the Federal Territories for all sectors.
At RM1,700, gross monthly salary:
- EPF: RM187
- SOCSO: Approximately RM2.00
- EIS: Approximately RM3.00
- PCB: RM0 (below the tax threshold)
- Net take-home estimated: 1,508 RM
To find the latest minimum wage gazette order specific exemptions for certain sectors, as well as obligations of employers to comply, go to this website. Department of Labour Peninsular Malaysia (JTKSM) and the Ministry of Human Resources Malaysia (MOHR) -two of the government agencies accountable for enforcing Malaysia’s labor and wage laws.
Malaysia Income Tax Reliefs 2026 - Legally Reduce Your PCB Every Month
Making use of all LHDN taxes is the best method of legally reducing you each month’s PCB deduction. These reliefs lower your annual taxable earnings which results in a lower taxes every month throughout the year.
Personal and Family Reliefs:
- Individual relief Individual relief: The amount is RM9,000 (automatic for all residents taxpayers)
- Spouse relief (non-working spouse): RM4,000
- Disability spouse Disability spouse
- Children under 18: RM2,000 for each child
- Children in full-time education: $8,000 per child
- Disability child: RM6,000 for each child
Lifestyle and Education Reliefs:
- Lifestyle relief (books web, online gadgets, sporting equipment gadgets, books) up to RM2,500
- Course fees and development of skills Course fees and development costs: up to RM7,000
- Parents’ medical expenses as high as RM8,000
- Medical expenses for yourself or spouse up to 10000 RM
Insurance and Savings Reliefs:
- Premiums for life insurance and EPF contributions rolled into one up to RM7,000
- Medical and education insurance The maximum amount is RM3,000.
- Private Retirement Scheme (PRS) Contributions: up to RM3,000
- The SSPN (National Educational Savings Scheme) deposits to support education of children: up to RM8,000
A married person with two children who are entitled to the major reliefs may reduce their income taxable by RM25,000 over an individual who is claiming just the relief for individuals which is a significant monthly PCB savings.
For claims submission, filing annual tax returns and check your tax records, log into MyTax, which is the official LHDN e-filing and the tax administration portal.
Employee vs. Employer Contributions - Understanding Cost to Company (CTC)
Many Malaysian employees mistake their gross pay with what the employer actually pays. They are two completely different numbers. They are the Cost to Company (CTC) is the monthly total cost your employer has to pay to keep you in the job -It includes your gross pay plus the employer’s portion from EPF, SOCSO, and EIS.
- At RM5,000 gross, CTC is around 5,730 RM.
- At RM10,000 gross, CTC is about 11 133 RM.
- At RM15,000, the gross salary CTC is about RM16,671.
Knowing CTC is vitally important in the negotiation of salary, budgeting for workforce and payroll planning for startup. It is also the reason that certain employers choose to offer benefits that are not cash-based (such as company vehicles medical coverage, company cars or travel reimbursements) instead of increasing the base salary since certain benefit-in kind items are either EPF-exempt, or tax-free under the guidelines of LHDN’s benefit-inkind.
Frequently Asked Questions About Salary Calculator Malaysia
What’s the distinction between net and gross income in Malaysia? Gross salary is the total monthly income before deductions. Net salary, also known as take-home pay the amount you receive when EPF, SOCSO, EIS and PCB are taken out.
What’s the distinction between net and gross income in Malaysia?
Gross salary is the total monthly income before deductions. Net salary, also known as take-home pay the amount you receive when EPF, SOCSO, EIS and PCB are taken out.
Do overtime payments count towards EPF as well as SOCSO?
Yes. Fixed allowances, overtime, and commissions are usually classed as wage according to the Employment Act 1955 and are a part of EPF and SOCSO calculation.
Do I have the option of opting out of EPF contribution?
No. EPF is a requirement as per the Employees Provident Fund Act of 1991 for all eligible employees under age 55. Employers who do not pay EPF will be punished criminally by the KWSP.
Are Zakat a tax deduction for Malaysia?
Yes. For Muslim employees Zakat earned in the assessment year acts as a tax rebate direct and is not just relief, but a reduction in PCB payable in a one-for-one basis with respect to the tax total charged. This is covered by the zakat rebate rules of LHDN.
Where can I find the EA Form for annual tax filing?
Your employer must send out the EA Form (Borang EA) before the close of February every year. It reveals your total annual remuneration as well as the PCB that you have deducted. It is useful when filing your tax return for the year through MyTax.
What exactly is Borang E in Malaysia payroll?
Borang E is the annual employer’s return that is filed with LHDN on March 31 of each year. It reports the total employee count as well as remuneration earned and PCB deductions. All employers, even those that have no employees must file the form. The details are on the official site of LHDN.
Final Word - Why Using a Salary Calculator Malaysia Matters
In Malaysia’s regulated payroll system knowing your salary deductions isn’t just useful but it’s your financial and legal right. The cumulative effect on your salary of EPF, SOCSO, EIS and PCB could lower your salary by 13%-20 percent or more in more incomes. Knowing precisely where each dollar goes allows you to negotiate your compensation with confidence and plan budgets with precision and get every tax benefit you’re eligible to.
Always confirm your calculations against the official rates from the KWSP, PERKESO as well as the LHDN. For complicated payroll scenarios -such as bonuses, benefits-in-kind and expatriate taxation as well as director fees — you should consult an approved tax agent who is who is registered with the Malaysian Institute of Accountants (MIA) or a certified HR payroll specialist.