1. What is Net Salary Calculation?

The net salary calculation determines take-home pay by subtracting deductions (tax, EPF, SOCSO) from gross salary plus any overtime pay. This is essential for employees in Malaysia to understand their actual earnings.

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 contribution
• SOCSO — Social Security Organization contribution

Explanation: The calculation accounts for all mandatory deductions in Malaysia to provide accurate take-home pay.

3. Importance of Salary Calculation

Details: Accurate salary calculation helps employees budget effectively and understand their compensation structure, while ensuring all legal deductions are accounted for.

4. Using the Calculator

Tips: Enter all values in MYR. Ensure you have accurate figures for gross salary, overtime pay, and all deductions. Values must be positive numbers.

5. Frequently Asked Questions (FAQ)

Q1: What is EPF in Malaysia?
A: EPF (Employees Provident Fund) is a mandatory retirement savings scheme where both employees and employers contribute a percentage of the salary.

Q2: What is SOCSO?
A: SOCSO (Social Security Organization) provides social security protection to employees against work-related injuries and invalidity.

Q3: How is overtime pay calculated in Malaysia?
A: Overtime pay is typically 1.5 times the hourly rate for normal overtime and 2-3 times for public holidays/rest days, as per Employment Act 1955.

Q4: Are there other deductions not included here?
A: This calculator covers basic deductions. Some employers may have additional deductions like health insurance or loan repayments.

Q5: How often should I calculate my net salary?
A: It's good practice to calculate whenever there are changes to your gross salary, overtime, or deduction rates (usually annually for tax updates).