Malaysia Salary Calculator

How is salary calculated in Malaysia?

Every Malaysian employee's monthly take-home pay is their gross salary minus four statutory deductions: EPF (Employees Provident Fund), SOCSO (Social Security Organisation), EIS (Employment Insurance System), and PCB (income tax instalments, locally known as Potongan Cukai Bulanan). On top of that, the employer separately pays employer-side contributions to EPF, SOCSO, EIS and, where applicable, HRDF (Human Resources Development Fund).

What is EPF and how is it calculated?

EPF is Malaysia's mandatory retirement savings scheme run by KWSP (Kumpulan Wang Simpanan Pekerja). For Malaysian citizens and permanent residents below age 60, the standard contribution rate is 11% of monthly wages from the employee and approximately 12–13% from the employer (the exact employer rate depends on the wage band).

Employees can elect a reduced employee rate of 9% by submitting Form KWSP 17A. Employees aged 60 and above contribute 0% (employee) and 4% (employer). Foreign workers contribute at different fixed rates set by KWSP.

What is SOCSO and how is it calculated?

SOCSO (PERKESO) provides employment injury and invalidity protection. Contributions are based on a fixed schedule of wage bands rather than a flat percentage. As of 2026, contributions are capped at wages of RM 6,000 per month for Category 1 (employment injury + invalidity). Employees contribute roughly 0.5% and employers roughly 1.75% of the wage band ceiling.

What is EIS and how is it calculated?

EIS provides temporary financial assistance to workers who lose their jobs. Like SOCSO, it uses a wage-band schedule and is capped at RM 6,000 / month. Both employer and employee contribute 0.2% of the wage band.

What is PCB (Potongan Cukai Bulanan)?

PCB is your monthly income tax instalment, deducted by the employer and remitted to LHDN (Inland Revenue Board). It's calculated using the official LHDN PCB formula, which factors in your annual projected income, individual/marital/child tax reliefs, mandatory EPF deduction, and any additional reliefs you've declared via Form TP1.

At year-end, you file your Borang BE (or B) and either get a refund (if PCB overshot your actual tax) or pay the difference. PCB is an estimate that aims to land you close to zero owed.

How accurate is this calculator?

This calculator uses the same statutory tables and the same calculation engine that Gajee.co uses to run actual payroll for Malaysian companies. EPF, SOCSO, and EIS contribution tables are sourced from official KWSP and PERKESO publications. PCB is computed using the LHDN PCB formula method (Kaedah Pengiraan).

Results are intended as a personal estimate. For your actual monthly take-home pay, refer to your official payslip. For your annual tax obligation, file your Borang BE with LHDN.

Frequently asked questions

Is this calculator free to use?

Yes, completely free. No sign-up required, no email collected, your numbers never leave the calculation engine.

Does it support foreign workers?

Yes. Switch the "Citizenship" dropdown to "Foreigner" to apply the correct EPF rate and skip EIS (foreign workers are not covered by EIS).

What about bonuses, allowances and overtime?

The current version calculates based on basic monthly salary. The annual figure assumes 12 months at the same basic salary. Bonus-month PCB calculations are more complex and Gajee.co's full product handles them correctly.

Are the rates current?

Yes. Rates shown are effective from 16 July 2026. When KWSP, PERKESO or LHDN update their tables, we update them here within days.