1. What is Employer Salary Cost?

The total cost to employ someone in Malaysia includes gross salary plus mandatory contributions like EPF (Employees Provident Fund) and SOCSO (Social Security Organization). This calculator helps employers budget for these additional costs.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — The employee's base salary in MYR per year
• Employer EPF — 13% of salary up to contribution ceiling (MYR 100,000 example)
• Employer SOCSO — Varies by wage bracket (MYR 19.75-52.25/month)

3. Importance of Employer Cost Calculation

Details: Understanding total employment costs is crucial for budgeting, financial planning, and determining competitive compensation packages while accounting for mandatory contributions.

4. Using the Calculator

Tips: Enter the gross annual salary in MYR. The calculator will compute the additional employer contributions and total cost of employment.

5. Frequently Asked Questions (FAQ)

Q1: What is the EPF contribution ceiling?
A: For 2025/26, the maximum monthly salary subject to EPF is MYR 5,000 (MYR 60,000 annually), but this may change.

Q2: How is SOCSO calculated?
A: SOCSO contributions are tiered based on monthly wages. This calculator uses the highest monthly rate multiplied by 12 for annual estimation.

Q3: Are there other employer contributions?
A: Yes, EIS (Employment Insurance System) at 0.2% of wages and HRDF levy (1% for certain sectors) may apply.

Q4: Does this include bonuses?
A: No, bonuses have separate EPF contribution rules. This calculator only considers base salary.

Q5: How often should I recalculate?
A: Recalculate whenever salary changes or at least annually as contribution rates and ceilings may change.