1. What is the Salary Calculator?

This calculator helps employees in Malaysia estimate their net salary after accounting for overtime pay and standard deductions (tax, EPF, and SOCSO). It follows the standard Malaysian overtime calculation formula.

2. How Does the Calculator Work?

The calculator uses these formulas:

Where:

• Overtime Hours — Number of overtime hours worked
• Rate — Hourly rate in MYR
• Gross Salary — Base salary before deductions
• Tax — Income tax amount
• EPF — Employees Provident Fund contribution
• SOCSO — Social Security Organization contribution

Explanation: The calculator first computes overtime pay at 1.5 times the normal rate, then adds it to gross salary before subtracting all deductions.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees understand their take-home pay and ensures proper compensation for overtime work according to Malaysian labor laws.

4. Using the Calculator

Tips: Enter all required fields with positive numbers. Overtime hours can include fractions (e.g., 1.5 hours). All monetary values should be in MYR.

5. Frequently Asked Questions (FAQ)

Q1: What is the overtime rate in Malaysia?
A: The standard overtime rate is 1.5 times the hourly rate for normal working days.

Q2: How is EPF calculated?
A: EPF is typically 11% of employee's salary, but this calculator allows you to input the exact amount.

Q3: What is included in SOCSO?
A: SOCSO covers work injury insurance and invalidity pension schemes for employees.

Q4: Are there different overtime rates for weekends/holidays?
A: Yes, but this calculator uses the standard 1.5x rate. Weekend/holiday rates may be higher (2x or 3x).

Q5: Is this calculator suitable for all employment types?
A: This is designed for standard monthly-paid employees. Daily-rated or piece-rated workers may have different calculations.