1. What is Malaysia Salary Tax Calculation?

The Malaysia Salary Tax Calculator estimates monthly deductions including income tax, EPF (Employees Provident Fund), and SOCSO (Social Security Organization) contributions for Malaysian employees.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Income Tax — Progressive tax based on annual income
• EPF — 11% of salary (Malaysians only, up to MYR 5,000 salary)
• SOCSO — Social security contribution (Malaysians only)

Explanation: The calculation considers citizenship status, with different rules for Malaysians and foreigners.

3. Importance of Tax Calculation

Details: Accurate tax estimation helps employees understand their take-home pay and employers to correctly deduct and remit taxes and contributions.

4. Using the Calculator

Tips: Enter monthly salary in MYR, age (must be 18+), and select citizenship status. The calculator will estimate your monthly deductions.

5. Frequently Asked Questions (FAQ)

Q1: Do foreigners pay EPF and SOCSO?
A: Foreign workers are generally exempt from EPF and SOCSO contributions unless under specific schemes.

Q2: Is this calculator accurate for all cases?
A: This provides estimates. Actual deductions may vary based on specific circumstances and current rates.

Q3: When are tax deductions made?
A: Monthly PCB (Potongan Cukai Bulanan) deductions are made from salary, with annual tax filing required.

Q4: Are there tax reliefs not shown here?
A: Yes, various reliefs (personal, medical, insurance, etc.) can reduce taxable income during annual filing.

Q5: What about EIS contribution?
A: Employment Insurance System (EIS) contributions (0.2% of salary) are not included in this calculation.