1. What is Monthly Net Pay Calculation?

This calculator determines the net salary for an incomplete month of work in Malaysia, accounting for deductions like income tax, EPF (Employees Provident Fund), and SOCSO (Social Security Organization).

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• \( \text{Gross Pay} \) — Annual gross salary in MYR
• \( \text{Income Tax} \) — Monthly income tax deduction
• \( \text{EPF} \) — Employees Provident Fund contribution
• \( \text{SOCSO} \) — Social Security Organization contribution
• \( \text{Days Worked} \) — Actual days worked in the month
• \( \text{Days in Month} \) — Total working days in the month

Explanation: The formula first calculates the monthly gross pay from annual salary, subtracts all deductions, then prorates based on days worked.

3. Importance of Accurate Salary Calculation

Details: Proper salary calculation ensures compliance with Malaysian labor laws and accurate payment for partial month employment, common for new hires or resigning employees.

4. Using the Calculator

Tips: Enter all values in MYR. Days worked cannot exceed days in month. For annual gross salary, divide by 12 to get monthly equivalent before deductions.

5. Frequently Asked Questions (FAQ)

Q1: What is EPF in Malaysia?
A: The 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: The Social Security Organization provides social security protection to employees against work-related injuries and occupational diseases.

Q3: How is income tax calculated in Malaysia?
A: Malaysia uses a progressive tax rate system based on annual chargeable income after deductions and reliefs.

Q4: Are public holidays counted as working days?
A: Typically yes, unless specified otherwise in the employment contract.

Q5: What if I worked overtime in the partial month?
A: Overtime should be calculated separately and added to the prorated basic salary.