Salary & Payroll Calculator Malaysia 2026
✓ 2026Free salary and payroll calculator - Calculate your monthly take-home pay after EPF, SOCSO, EIS and PCB tax deductions
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Salary Breakdown
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What is a Salary & Payroll Calculator?
A salary and payroll calculator helps Malaysian employees and employers calculate exact take-home pay and payroll deductions from gross salary. This free payroll calculator processes all mandatory statutory contributions.
In Malaysia, payroll deductions include EPF (Employees Provident Fund), SOCSO (Social Security Organisation), EIS (Employment Insurance System), and PCB monthly tax deductions. Our payroll system calculates all these automatically.
Understanding Your Deductions (2026)
EPF (11%)
Retirement savings • KWSP official rate
SOCSO (Table-based)
Social security • RM6,000 ceiling
EIS (Table-based)
Employment insurance • Age 18-60
PCB (0-30%)
Monthly tax • LHDN progressive rates
Calculate Your Annual Income Tax
Want to know your actual tax liability? Use our comprehensive Income Tax Calculator with all LHDN tax reliefs to see if you're due a refund or need to pay more.
Calculate Annual TaxStep-by-Step Salary Calculation Example: RM5,000 Monthly Salary
Here is a detailed walkthrough showing exactly how a Malaysian employee's net take-home pay is calculated from a gross monthly salary of RM5,000. This example uses 2026 official government rates for a single Malaysian citizen under 55 years old.
Employee Deductions (Your Payslip)
Employer Costs (Total Cost to Company)
How PCB RM97.00 was calculated:
- Monthly after EPF: RM5,000 - RM550 = RM4,450
- Annual after EPF: RM4,450 x 12 = RM53,400
- Less individual relief: RM53,400 - RM9,000 = RM44,400
- Tax on first RM5,000: 0% = RM0
- Tax on next RM15,000: 1% = RM150
- Tax on next RM15,000: 3% = RM450
- Tax on remaining RM9,400: 6% = RM564
- Annual tax: RM1,164 / 12 = RM97.00/month
How Is Salary Calculated in Malaysia?
In Malaysia, your net take-home pay is your gross salary minus four mandatory statutory deductions. These deductions are set by official government bodies and are required by law for all employees. Understanding how each deduction works helps you plan your finances and verify your payslip is accurate.
EPF (Employees Provident Fund) - KWSP
EPF is a mandatory retirement savings scheme managed by KWSP (Kumpulan Wang Simpanan Pekerja). It ensures all employees build up savings for retirement.
- Employee rate: 11% of gross salary (standard for citizens under 55)
- Employer rate: 13% for salary up to RM5,000; 12% for salary above RM5,000
- Age 55-60: Reduced employee rate of 5.5%
- Age 60+: EPF is optional for employees
- Non-citizens: 2% employee rate (effective 2025)
Source: KWSP Official Website
SOCSO (Social Security) - PERKESO
SOCSO is managed by PERKESO (Pertubuhan Keselamatan Sosial) and provides social security protection covering work-related injuries (Employment Injury Scheme) and invalidity (Invalidity Scheme).
- Contribution: Table-based (not a fixed percentage)
- Salary ceiling: RM6,000 per month (increased from RM5,000 in Oct 2024)
- Employee share: Approximately 0.5% of salary
- Employer share: Approximately 1.75% of salary
- Eligibility: Employees under 60 years old
Source: PERKESO Official Website
EIS (Employment Insurance System) - PERKESO
EIS is also managed by PERKESO and provides financial assistance and re-employment support to workers who lose their jobs through retrenchment or redundancy.
- Contribution: Table-based, approximately 0.2% each for employee and employer
- Salary ceiling: RM6,000 per month
- Coverage: Job loss allowance, re-employment placement, training
- Eligibility: Employees aged 18 to 60 years
- Equal sharing: Employee and employer contribute the same amount
Source: PERKESO EIS Information
PCB (Monthly Tax Deduction) - LHDN
PCB (Potongan Cukai Bulanan) is the monthly income tax deduction managed by LHDN (Lembaga Hasil Dalam Negeri), the Inland Revenue Board of Malaysia. It uses progressive tax rates from 0% to 30%.
- Tax residents (182+ days): Progressive rates from 0% to 30%
- Non-residents (<182 days): Flat rate of 30%
- Single threshold: PCB applies if monthly income after EPF exceeds RM2,851
- Married threshold: PCB applies if monthly income after EPF exceeds RM3,851
- Tax reliefs: Individual (RM9,000), spouse, children reduce taxable income
Source: LHDN Official Website
Employee vs. Employer Contributions: What's the Difference?
Both employees and employers contribute to EPF, SOCSO, and EIS, but the amounts differ. Employee contributions are deducted from your gross salary and shown on your payslip -- this directly reduces your take-home pay. Employer contributions are paid on top of your salary by your employer and do not reduce your take-home pay, but they represent the true cost of employment for the company.
For example, on a RM5,000 salary, the employer pays an additional RM730.25 in statutory contributions (EPF 13% + SOCSO + EIS), making the total cost to the company RM5,730.25. PCB tax is only deducted from the employee's salary -- the employer does not pay additional income tax on your behalf.
Common Salary Examples: Malaysia 2026
Quick reference table showing estimated monthly deductions and net take-home pay for common Malaysian salary levels. All figures use 2026 official rates for a single Malaysian citizen, under 55 years, employee status, with no additional reliefs.
| Monthly Salary | EPF (11%) | SOCSO | EIS | PCB Tax | Net Take-Home |
|---|---|---|---|---|---|
| RM 2,000 | RM 220.00 | RM 3.00 | RM 4.00 | RM 0.00 | RM 1,773.00 |
| RM 3,000 | RM 330.00 | RM 4.50 | RM 6.00 | RM 0.00 | RM 2,659.50 |
| RM 5,000 | RM 550.00 | RM 7.50 | RM 10.00 | RM 97.00 | RM 4,335.50 |
| RM 8,000 | RM 880.00 | RM 9.00 | RM 12.00 | RM 410.30 | RM 6,688.70 |
| RM 10,000 | RM 1,100.00 | RM 9.00 | RM 12.00 | RM 748.50 | RM 8,130.50 |
| RM 15,000 | RM 1,650.00 | RM 9.00 | RM 12.00 | RM 1,850.00 | RM 11,479.00 |