1. What is Total Compensation?

Total compensation in Malaysia includes base salary plus mandatory contributions like EPF (Employees Provident Fund) and SOCSO (Social Security Organization). This calculator helps estimate the complete employment cost to employers.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( \text{Salary} \) — Annual base salary in MYR
• \( \text{EPF} \) — Employer's contribution (typically 11-13% of salary)
• \( \text{SOCSO} \) — Fixed social security contribution amount

Explanation: The calculation accounts for mandatory Malaysian employment contributions that are part of total employment costs.

3. Importance of Compensation Calculation

Details: Understanding total compensation helps both employers budget accurately and employees understand their full employment package value beyond just salary.

4. Using the Calculator

Tips: Enter annual salary in MYR, EPF contribution rate (default is 11%), and SOCSO amount. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard EPF rate in Malaysia?
A: The employer contribution rate is typically 11-13% of monthly wages, with 11% being most common.

Q2: How is SOCSO calculated?
A: SOCSO contributions are fixed amounts based on salary brackets, not percentages. Check latest SOCSO rates for exact figures.

Q3: Are bonuses included in this calculation?
A: This calculator uses base salary only. Bonuses may have different EPF contribution rules.

Q4: What other benefits might be included?
A: This calculator covers mandatory contributions only. Additional benefits like insurance or allowances would increase total compensation further.

Q5: Is this calculator suitable for self-employed?
A: No, self-employed individuals have different contribution schemes and rates.