1. What is Net Salary?

Net salary is the amount an employee takes home after all deductions (income tax, EPF, SOCSO, etc.) have been subtracted from the gross salary. It represents the actual amount received by the employee.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

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

Explanation: The calculator subtracts all mandatory deductions from the gross salary to determine the take-home pay.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps employees budget effectively, compare job offers, and plan their finances. Employers use it to structure compensation packages.

4. Using the Calculator

Tips: Enter your annual gross salary in MYR, estimated income tax, EPF contribution (typically 11% of gross salary), and SOCSO contribution. All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is the standard EPF contribution rate?
A: The employee contribution rate is typically 11% of gross salary, while employer contributes 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 deductions and reliefs.

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, some employers may deduct for health insurance, loans, or other benefits which aren't included in this basic calculation.

Q5: Is this calculator accurate for all employment types?
A: This is designed for standard employment. Self-employed or contract workers may have different deduction structures.