1. What is Net Salary Calculation?

The net salary calculation determines take-home pay after all deductions. 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 — Base salary before deductions
• Overtime — Additional pay for extra hours worked
• Part-Time Pay — Earnings from part-time work
• Tax — Income tax deductions
• EPF — Employees Provident Fund contributions
• SOCSO — Social Security Organization contributions

Explanation: The calculator sums all income components and subtracts all deductions to determine net take-home pay.

3. Importance of Accurate Salary Calculation

Details: Accurate net salary calculation helps employees understand their take-home pay and plan finances accordingly. It also ensures proper tax and social security contributions.

4. Using the Calculator

Tips: Enter all values in MYR. Overtime and part-time pay are optional (default to 0). All values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What's the difference between gross and net salary?
A: Gross salary is total earnings before deductions, while net salary is take-home pay after all deductions.

Q2: How is EPF calculated in Malaysia?
A: EPF is typically 11% of employee's salary (employee contribution) plus 12-13% from employer (not included here).

Q3: Are overtime payments taxable?
A: Yes, overtime payments are generally subject to income tax in Malaysia.

Q4: What's the SOCSO contribution rate?
A: SOCSO rates vary based on salary (0.5%-1.75% for employees, 1.25%-1.75% for employers).

Q5: Can I use this for freelance income?
A: This calculator is designed for employment income. Freelancers should consider additional taxes and contributions.