1. What is Net Salary Calculation?

The net salary calculation determines take-home pay by subtracting all deductions (tax, EPF, SOCSO) from gross salary. This helps employees understand their actual monthly income after mandatory contributions in Malaysia.

2. How Does the Calculator Work?

The calculator uses the net salary formula:

Where:

• Gross Salary — Total salary before deductions (MYR)
• Tax — Income tax amount (MYR)
• EPF — Employees Provident Fund contribution (MYR)
• SOCSO — Social Security Organization contribution (MYR)

Explanation: The equation accounts for all mandatory deductions from gross salary to determine the actual amount received by the employee.

3. Importance of Net Salary Calculation

Details: Understanding net salary helps with financial planning, budgeting, and ensuring correct salary payments. It's essential for both employees and employers.

4. Using the Calculator

Tips: Enter all amounts in MYR. Ensure tax, EPF, and SOCSO values are accurate based on current Malaysian rates and your salary bracket.

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 invalidity.

Q3: How is Malaysian income tax calculated?
A: Malaysian income tax uses progressive rates based on chargeable income after deductions and reliefs.

Q4: Are there other deductions not included here?
A: Yes, some employers may have additional deductions like health insurance or loan repayments not accounted for in this basic calculator.

Q5: Is this calculator specific to Malaysia?
A: Yes, it uses Malaysian-specific deductions (EPF, SOCSO) and currency (MYR).