1. What is Net Salary Calculation?

The net salary calculation determines take-home pay by subtracting all mandatory deductions (income tax, EPF, SOCSO) from gross salary in Malaysia.

2. How Does the Calculator Work?

The calculator uses the net salary formula:

Where:

• Gross Salary — Total salary before deductions (MYR/year)
• Income Tax — Calculated tax amount (MYR)
• EPF — Employees Provident Fund contribution (11% of salary)
• SOCSO — Social Security Organization contribution (MYR)

Explanation: The formula accounts for all mandatory deductions in Malaysia to determine the actual take-home pay.

3. Importance of Net Salary Calculation

Details: Accurate net salary calculation helps employees understand their actual take-home pay and plan their finances accordingly.

4. Using the Calculator

Tips: Enter gross salary in MYR/year, income tax amount, EPF contribution (typically 11% of salary), and SOCSO contribution. All values must be valid positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard EPF contribution rate?
A: Employees typically contribute 11% of their salary to EPF, while employers contribute 12-13%.

Q2: 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.

Q3: What is SOCSO and how much is it?
A: SOCSO (Social Security Organization) contributions range from MYR 4.30 to MYR 24.65 monthly depending on salary.

Q4: Are there other deductions not included here?
A: Yes, some employers may deduct for health insurance, loans, or other benefits not included in this basic calculation.

Q5: Is this calculator accurate for all employment types?
A: This provides a basic estimate. Contract workers, freelancers, and those with additional income sources may need different calculations.