1. What is Net Salary Calculation?

The net salary calculation determines an employee's take-home pay after accounting for all additions (like allowances) and deductions (like taxes and contributions) from the gross salary. In Malaysia, common deductions include income tax, EPF (Employees Provident Fund), and SOCSO (Social Security Organization).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Basic salary before any deductions
• Allowances — Additional payments like housing, transport, etc.
• Tax — Income tax deductions
• EPF — Employees Provident Fund contribution (typically 11% of salary)
• SOCSO — Social Security Organization contribution

Explanation: The formula adds all income components and subtracts all mandatory deductions to arrive at the net salary.

3. Importance of Salary Calculation

Details: Accurate salary calculation ensures employees understand their take-home pay and helps employers comply with Malaysian labor laws and tax regulations.

4. Using the Calculator

Tips: Enter all amounts in MYR (Malaysian Ringgit). The calculator accepts decimal values for precise calculations. All fields are required and must be non-negative numbers.

5. Frequently Asked Questions (FAQ)

Q1: What are common allowances in Malaysia?
A: Common allowances include housing allowance, transport allowance, meal allowance, and overtime payments.

Q2: How is EPF calculated in Malaysia?
A: Employees contribute 11% of their salary to EPF, while employers contribute 12-13% (not included in this calculation).

Q3: What is the SOCSO contribution rate?
A: SOCSO rates vary based on salary brackets, ranging from MYR 0.10 to MYR 24.75 for employees.

Q4: Are bonuses included in gross salary?
A: Bonuses are typically separate from monthly gross salary and may have different tax treatments.

Q5: How often should salary calculations be done?
A: Salary calculations should be performed each pay period, typically monthly in Malaysia.