1. What is Net Salary Calculation?

The net salary calculation determines an employee's take-home pay after accounting for all deductions (tax, EPF, SOCSO) and additions (overtime) to the gross salary, including adjustments for unpaid leave.

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
• Unpaid Leave Deduction — Amount deducted for unpaid leave days
• Tax — Income tax deduction
• EPF — Employees Provident Fund contribution
• SOCSO — Social Security Organization contribution

3. Importance of Accurate Salary Calculation

Details: Accurate net salary calculation ensures employees receive correct compensation and helps employers maintain proper payroll records for compliance with Malaysian labor laws.

4. Using the Calculator

Tips: Enter all mandatory fields (gross salary, tax, EPF, SOCSO). Overtime and unpaid leave fields are optional (default to 0 if left blank). All values must be in MYR.

5. Frequently Asked Questions (FAQ)

Q1: What is the difference between gross and net salary?
A: Gross salary is total earnings before deductions, while net salary is the amount received after all deductions.

Q2: How is unpaid leave calculated?
A: Typically calculated as (monthly salary / number of working days) × number of unpaid leave days.

Q3: Are EPF and SOCSO mandatory in Malaysia?
A: Yes, EPF is mandatory for employees earning more than MYR 5,000/month, and SOCSO is mandatory for all employees.

Q4: How often should salary calculations be done?
A: Typically monthly, coinciding with payroll cycles.

Q5: What if my net salary seems incorrect?
A: Verify all input values, especially deductions. Consult your HR department if discrepancies persist.