1. What is Net Salary Calculation?

The net salary calculation determines take-home pay after deducting taxes and mandatory contributions from gross salary. In Malaysia, key deductions include income tax, EPF (Employees Provident Fund), and SOCSO (Social Security Organization).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( Gross\ Salary \) — Total annual salary before deductions (MYR)
• \( Income\ Tax \) — Annual income tax amount (MYR)
• \( EPF \) — Employees Provident Fund contributions (MYR)
• \( SOCSO \) — Social Security Organization contributions (MYR)

Explanation: The calculator provides both annual and monthly net salary values after deducting all mandatory contributions.

3. Importance of Salary Calculation

Details: Understanding net salary helps in financial planning, budgeting, and ensuring correct deductions are made by employers.

4. Using the Calculator

Tips: Enter your annual gross salary and all deductions in MYR. The calculator will compute your annual and monthly take-home pay.

5. Frequently Asked Questions (FAQ)

Q1: What is EPF in Malaysia?
A: EPF is a mandatory retirement savings scheme where employees contribute 11% and employers contribute 12-13% of monthly salary.

Q2: What is SOCSO?
A: SOCSO provides social security protection to employees against work-related injuries and invalidity.

Q3: How is income tax calculated in Malaysia?
A: Malaysia uses a progressive tax rate from 0% to 30% based on chargeable income after reliefs and deductions.

Q4: Are there other common deductions?
A: Some employers may deduct for health insurance, loan repayments, or other benefits, but these are not mandatory.

Q5: Why calculate monthly salary?
A: Most employees receive monthly paychecks, so converting annual figures helps with personal budgeting.