1. What is Net Salary Calculation?

The net salary calculation determines the actual take-home pay after deducting unpaid leave, taxes, and mandatory contributions (EPF and SOCSO) from the gross salary in Malaysia.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Gross Salary — Total salary before deductions
• Unpaid Leave Deduction — Amount deducted for unpaid leave days
• Tax — Income tax amount
• EPF — Employees Provident Fund contribution
• SOCSO — Social Security Organization contribution

Explanation: The formula first deducts unpaid leave from gross salary, then subtracts all mandatory deductions to arrive at net salary.

3. Importance of Accurate Salary Calculation

Details: Accurate salary calculation ensures proper compensation, compliance with labor laws, and correct tax and contribution payments in Malaysia.

4. Using the Calculator

Tips: Enter all amounts in MYR. Ensure values are positive numbers. Gross salary should be greater than the sum of deductions.

5. Frequently Asked Questions (FAQ)

Q1: How is unpaid leave calculated?
A: Typically, (Monthly Salary / Number of Working Days) × Days of Unpaid Leave.

Q2: What's the current EPF contribution rate?
A: As of 2023, employee contribution is 11% of salary (optional reduction to 9% available).

Q3: How is SOCSO calculated?
A: SOCSO contributions vary based on salary brackets and employment category.

Q4: Are there other deductions not included here?
A: Yes, some employers may deduct for other benefits or loans. This calculator covers basic mandatory deductions.

Q5: Can I use this for self-employed calculations?
A: No, this is designed for employees. Self-employed have different contribution schemes.