1. What is Malaysian Salary Calculation?

The Malaysian salary calculation determines net salary by subtracting statutory deductions (tax, EPF, SOCSO) from gross salary according to Malaysian labour laws.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• \( Gross\ Salary \) — Total earnings before deductions
• \( Tax \) — Income tax deductions
• \( EPF \) — Employees Provident Fund contributions
• \( SOCSO \) — Social Security Organization contributions

Explanation: This calculation follows standard Malaysian payroll practices where mandatory deductions are subtracted from gross earnings.

3. Importance of Accurate Salary Calculation

Details: Proper salary calculation ensures compliance with Malaysian labour laws, accurate employee compensation, and correct statutory contributions.

4. Using the Calculator

Tips: Enter all values in MYR. Ensure tax, EPF and SOCSO values are up-to-date with current Malaysian rates and regulations.

5. Frequently Asked Questions (FAQ)

Q1: What is EPF in Malaysia?
A: The Employees Provident Fund is a compulsory savings scheme for retirement where both employees and employers contribute.

Q2: What is SOCSO?
A: Social Security Organization provides social security protection including employment injury insurance and invalidity pension.

Q3: How is Malaysian income tax calculated?
A: Malaysian income tax uses progressive rates from 0% to 30% based on chargeable income after reliefs and deductions.

Q4: Are there other common deductions?
A: Yes, some employers may deduct for EIS (Employment Insurance System), loans, or other benefits.

Q5: When are these deductions paid?
A: Employers must remit deductions to the respective authorities by the 15th of the following month.