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Salary Formula:
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The net salary calculation determines take-home pay after accounting for all additions (allowances) and deductions (tax, EPF, SOCSO) in the Malaysian context. It's essential for financial planning and understanding your actual earnings.
The calculator uses the following formula:
Where:
Explanation: The formula adds all income components and subtracts all mandatory deductions to arrive at the net amount the employee receives.
Details: Accurate salary calculation helps employees understand their compensation structure, plan finances, and verify payroll accuracy. For employers, it ensures compliance with Malaysian labor laws and tax regulations.
Tips: Enter all values in MYR. Include all government allowances if applicable. Ensure tax, EPF, and SOCSO amounts are up-to-date based on current rates and your salary bracket.
Q1: What's included in government allowances?
A: This may include housing allowance, transportation allowance, cost of living allowance (COLA), or other government-specific benefits.
Q2: How is EPF calculated?
A: EPF is typically 11% of your gross salary for employees (rates may vary). Employers contribute an additional 12-13%.
Q3: What's the current SOCSO rate?
A: SOCSO contributions vary by salary range, from 0.5% to 3% of gross salary, with a maximum monthly contribution of MYR 48.90.
Q4: Are all allowances taxable?
A: Most cash allowances are taxable, but some (like petrol allowance up to certain limits) may be tax-exempt.
Q5: Should I include bonuses in gross salary?
A: For monthly calculations, use basic salary. For annual calculations, include bonuses which are subject to different tax treatments.