1. What is Net Salary?

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

2. How Does the Calculator Work?

The calculator uses the simple formula:

Where:

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

3. Importance of Salary Calculation

Details: Understanding net salary helps employees budget effectively and ensures they receive the correct amount after all mandatory deductions.

4. Using the Calculator

Tips: Enter all values in MYR. The calculator will compute the net salary by subtracting all deductions from the gross salary.

5. Frequently Asked Questions (FAQ)

Q1: What is EPF in Malaysia?
A: EPF (Employees Provident Fund) is a mandatory retirement savings scheme where both employees and employers contribute a percentage of the salary.

Q2: What is SOCSO?
A: SOCSO (Social Security Organization) provides social security protection to employees against work-related injuries and invalidity.

Q3: How is tax calculated in Malaysia?
A: Malaysian income tax is progressive, with rates from 0% to 30% depending on taxable income after reliefs and deductions.

Q4: Are there other common deductions?
A: Yes, some employers may deduct for health insurance, loan repayments, or other benefits, but these are not included in this basic calculator.

Q5: Why is my net salary different from my colleague's?
A: Net salary varies based on gross salary, tax status, EPF contributions, and other individual factors.