For the rules behind these figures, read the guide to Take-home pay.
Frequently asked questions
- How is take-home pay calculated in Malaysia?
- Take-home pay, or net pay, is gross pay less the employee's statutory deductions: EPF, SOCSO, EIS, Lindung 24 Jam (SKBBK) where it applies, and PCB. The calculator works each one out with the same engine our payroll software uses on every monthly run, so the result matches what a payslip would show for a whole month's salary.
- What is deducted from my salary?
- EPF at 11% for members under 60, taken from the KWSP Third Schedule bands. SOCSO and EIS from PERKESO's gazetted wage bands, capped at RM6,000 of monthly wages. SKBBK from June 2026 for foreign workers and for citizens who opt in. And PCB, the monthly tax deduction, which depends on tax category and reliefs. TP1 claims, zakat and benefits in kind are not included.
- Are allowances taxed and subject to EPF?
- It depends on the allowance, and the calculator applies each type's treatment when you add it. A fixed allowance, travel or petrol allowance for private use, and commission count as wages for EPF, SOCSO and EIS and are taxed through PCB. A meal allowance counts for EPF, SOCSO and EIS, and the calculator treats it as tax-exempt. Travel or petrol allowance for official duty is outside EPF, SOCSO and EIS, and LHDN exempts it from tax only up to RM6,000 a year; the calculator treats it as fully exempt, so it does not tax any amount above that cap.
- How does a bonus affect take-home pay?
- A bonus is added to gross pay for EPF but excluded from wages for SOCSO and EIS. For PCB it is additional remuneration, taxed as the difference between the projected annual tax with and without it and charged in full in the month it is paid, so a bonus is often taxed at a higher effective rate than salary.
- How much does an employee cost the employer?
- The gross salary plus the employer's own EPF, SOCSO and EIS contributions, which are paid on top of salary rather than deducted from it. The employer EPF share is 13% on wages of RM5,000 or less and 12% above RM5,000 for members under 60. The HRD Corp levy, where it applies, is a further employer cost not included here.
- What gross salary do I need for a given take-home pay?
- Choose "Take-home pay" and enter the net pay you want each month. The calculator works out a basic monthly salary that gives at least that much after EPF, SOCSO, EIS and PCB, keeping any allowances and reliefs you enter fixed, and shows the full payslip for it. With the same salary since January, earlier months' PCB can shift as salary changes, so it finds a salary that reaches your target where one sen less falls short; this may be slightly above the lowest. With year-to-date figures entered, it is the lowest salary that reaches it. Bonus is left out in this mode.