1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions from the gross salary. In Malaysia, common 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 — Basic salary before any deductions
• Overtime Pay — Additional earnings from overtime work
• Tax — Income tax deductions
• EPF — Employees Provident Fund contributions
• SOCSO — Social Security Organization contributions

Explanation: The formula calculates take-home pay by adding regular and overtime pay, then subtracting all mandatory deductions.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps employees budget effectively and ensures employers comply with Malaysian labor laws regarding proper compensation and deductions.

4. Using the Calculator

Tips: Enter all amounts in MYR (Malaysian Ringgit). Input positive numbers only. For accurate results, use exact deduction amounts from your payslip or employer.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is earnings before deductions, while net salary is the actual amount received after all deductions.

Q2: How is EPF calculated in Malaysia?
A: EPF is typically 11% of employee's salary (for employees earning ≤ RM5,000) plus 12-13% employer contribution.

Q3: What is SOCSO and how much is deducted?
A: SOCSO provides social security protection. Contributions range from RM0.10 to RM24.65 monthly based on salary.

Q4: Are there other deductions not included here?
A: Yes, some employees may have additional deductions like health insurance, loan repayments, or union fees.

Q5: How often should I calculate my net salary?
A: It's good practice to calculate whenever your gross salary changes or when tax/contribution rates are updated.