1. What is the Salary Calculator?

The Salary Calculator helps employees in Malaysia estimate their net take-home pay after deductions like tax, EPF (Employees Provident Fund), and SOCSO (Social Security Organization). It uses standard Malaysian payroll deduction formulas.

2. How Does the Calculator Work?

The calculator uses the following 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)

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

3. Importance of Net Salary Calculation

Details: Understanding net salary helps employees budget effectively, plan finances, and verify payroll accuracy. It's essential for financial planning and loan applications.

4. Using the Calculator

Tips: Enter your gross monthly salary and estimated deductions. For accurate results, use your latest payslip figures or consult with your HR department.

5. Frequently Asked Questions (FAQ)

Q1: What is EPF in Malaysia?
A: EPF (Employees Provident Fund) is a mandatory retirement savings scheme where employees contribute 11% of their salary, and employers contribute 12-13%.

Q2: How is SOCSO calculated?
A: SOCSO contributions are based on salary brackets, with rates between 0.5% to 1.75% of monthly wages, shared between employer and employee.

Q3: What are typical tax rates in Malaysia?
A: Malaysia uses progressive tax rates from 0% to 30% depending on annual taxable income after reliefs and deductions.

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

Q5: How often should I check my net salary?
A: Review your payslip monthly, especially after any salary changes, bonus payments, or when tax rates are updated annually.