1. What is Net Salary Calculation?

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

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)

Explanation: This calculation provides the actual amount an employee receives after all mandatory deductions.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps employees budget effectively and employers ensure accurate payroll processing according to Malaysian labor laws.

4. Using the Calculator

Tips: Enter all values in MYR. Gross salary must be positive, while deductions should be non-negative numbers.

5. Frequently Asked Questions (FAQ)

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

Q2: How are EPF contributions calculated?
A: EPF contributions are typically 11% of gross salary for employees (with employer contributing 12-13%), but rates may vary.

Q3: What is included in SOCSO contributions?
A: SOCSO covers work injury insurance and invalidity pension, with rates based on salary brackets.

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

Q5: Is this calculator specific to Malaysia?
A: Yes, it follows Malaysian payroll deduction standards as used by Jobstreet employers.