1. What is In-Hand Salary?

In-hand salary is the actual amount an employee takes home after all deductions like income tax, EPF (Employees Provident Fund), and SOCSO (Social Security Organization) contributions have been subtracted from the gross salary.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before any deductions (MYR/year)
• Income Tax — Tax deducted based on Malaysian tax brackets (MYR)
• EPF — Employees Provident Fund contribution (MYR)
• SOCSO — Social Security Organization contribution (MYR)

3. Importance of Salary Calculation

Details: Understanding your in-hand salary helps in financial planning, budgeting, and ensuring you're receiving the correct compensation after all mandatory deductions.

4. Using the Calculator

Tips: Enter your gross annual salary in MYR, followed by your income tax, EPF, and SOCSO contributions. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is EPF in Malaysia?
A: EPF (Employees Provident Fund) is a compulsory savings scheme for Malaysian employees, with contributions from both employee and employer.

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

Q3: How is income tax calculated in Malaysia?
A: Malaysian income tax uses a progressive tax rate system, with rates ranging from 0% to 30% depending on taxable income.

Q4: Are there other deductions not included here?
A: Yes, there might be other deductions like EIS (Employment Insurance System), PCB (Monthly Tax Deduction), or voluntary deductions.

Q5: Is this calculator accurate for all employment types?
A: This provides a basic calculation. Actual in-hand salary may vary based on specific employment contracts and additional benefits/deductions.