1. What is Net Salary Calculation?

The net salary calculation determines take-home pay after deducting taxes and mandatory contributions. In Malaysia, this typically includes income tax, EPF (Employees Provident Fund), and SOCSO (Social Security Organization) contributions.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before deductions (MYR)
• Tax — Income tax for 2022-23 assessment year (MYR)
• EPF — Employee's contribution to provident fund (MYR)
• SOCSO — Social security contribution (MYR)

Explanation: The calculation subtracts all mandatory deductions from the gross salary to determine the actual amount the employee receives.

3. Importance of Salary Calculation

Details: Accurate net salary calculation helps employees understand their take-home pay and employers ensure correct payroll processing according to Malaysian tax and labor laws.

4. Using the Calculator

Tips: Enter all values in MYR. For accurate results, use actual tax and contribution amounts based on official Malaysian tax tables and contribution rates.

5. Frequently Asked Questions (FAQ)

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

Q2: How is EPF calculated in Malaysia?
A: EPF is typically 11% of gross salary for employees (rates may vary for different age groups).

Q3: What is SOCSO contribution?
A: SOCSO provides social security protection to employees against work-related injuries and invalidity.

Q4: Are there other deductions not included here?
A: Yes, some employers may deduct additional items like health insurance or loan payments.

Q5: Where can I find official tax rates?
A: Refer to the official LHDN (Inland Revenue Board of Malaysia) website for current tax rates.