1. What is Net Salary Calculation?

The net salary calculation determines take-home pay after deductions in Malaysia. It accounts for gross salary, overtime pay, and subtracts tax, EPF (Employees Provident Fund), and SOCSO (Social Security Organization) contributions.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Salary — Base salary before deductions
• Overtime Pay — Additional earnings from overtime work
• Tax — Income tax deductions
• EPF — Employees Provident Fund contributions
• SOCSO — Social Security Organization contributions

Explanation: The formula calculates total earnings then subtracts all mandatory deductions to determine take-home pay.

3. Importance of Salary Calculation

Details: Accurate salary calculation ensures proper budgeting and financial planning for school employees in Malaysia. It helps understand how much will be deducted and the actual amount received.

4. Using the Calculator

Tips: Enter all values in MYR (Malaysian Ringgit). Include all overtime earnings and ensure deduction amounts are accurate based on current rates.

5. Frequently Asked Questions (FAQ)

Q1: How is EPF calculated?
A: EPF is typically 11% of gross salary for employees (with employer contributing 12-13%). This calculator lets you input the exact amount.

Q2: What's included in SOCSO?
A: SOCSO covers work injury insurance and invalidity pension. Contribution rates vary by salary bracket.

Q3: Are school employees taxed differently?
A: Tax rates follow standard Malaysian income tax brackets, though some education allowances may be tax-exempt.

Q4: How accurate is this for part-time staff?
A: The calculator works for any employment type as long as you input correct gross pay and actual deductions.

Q5: Should bonuses be included in gross salary?
A: Only include regular monthly salary. Bonuses are taxed separately under Malaysian tax rules.