1. What is Monthly Net Salary?

Monthly net salary is the amount an employee takes home after all deductions (tax, EPF, SOCSO, etc.) have been subtracted from the gross salary. It represents the actual amount received in the bank account each month.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Annual salary before any deductions
• Tax — Income tax amount
• EPF — Employees Provident Fund contribution
• SOCSO — Social Security Organization contribution

Explanation: The formula first converts annual gross salary to monthly amount, then subtracts all mandatory deductions to arrive at the net take-home pay.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps in personal financial planning, budgeting, and comparing job offers. It shows the actual disposable income available each month.

4. Using the Calculator

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

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is the total amount before deductions, while net salary is the amount you actually receive after all deductions.

Q2: How is EPF calculated in Malaysia?
A: EPF is typically 11% of employee's salary (for those below 60) and is deducted automatically from monthly salary.

Q3: What is SOCSO and how much is it?
A: SOCSO provides social security protection. Contribution rates vary based on salary but are typically small amounts.

Q4: Are there other deductions not included here?
A: Yes, there might be other deductions like EIS, PCB, or company-specific deductions that aren't accounted for in this basic calculator.

Q5: Is this calculator accurate for all situations?
A: This provides a basic estimate. For precise calculations, consult your payslip or HR department as deductions may vary based on specific circumstances.