Is the take-home pay shown my final salary?

No — it is an estimate. PCB is reconciled annually when you file taxes (Form BE for employees with employment income only, Form B for those with business income). Reliefs, rebates, and zakat payments can lower your final tax bill, often resulting in a small refund.

What is the difference between PCB and income tax?

PCB is the monthly amount your employer withholds and remits to LHDN on your behalf. Your final income tax is what the law actually requires you to pay, calculated when you file your annual tax return. PCB is a pre-payment toward that final amount.

Do foreign workers contribute to EPF?

EPF contribution is voluntary for foreign workers (those holding a work pass other than permanent residence). If they opt in, the employee rate is 11% and the employer rate is a fixed RM 5 per month per worker. SOCSO is mandatory for foreign workers under the Employees' Social Security Act since 1 January 2019.

How are bonuses taxed in Malaysia?

Bonuses are added to your annual taxable income and taxed at your marginal rate. In the month a bonus is paid, your employer applies a specific PCB formula that may make that month's deduction look unusually large, but the annual total is unchanged. A larger bonus simply pushes part of your annual income into the next higher bracket.

Can I lower my PCB by submitting reliefs to my employer?

Yes — fill out Form TP1 to declare reliefs (life insurance, medical, lifestyle, SSPN, EPF beyond the default, etc.) and Form TP3 to declare zakat paid. Your employer will reduce subsequent PCB withholdings accordingly, improving your monthly cash flow.

Does this calculator include the EPF i-Saraan / voluntary contribution?

No. The calculator uses the statutory employee rate (default 11%). Voluntary contributions through i-Saraan or self-top-ups are separate and may qualify for additional tax relief up to the applicable cap.

What about SOCSO and EIS for company directors?

Owners and directors who draw a salary through PAYE are typically subject to SOCSO and EIS like other employees. Sole-proprietors and partners are not — but they can opt in via the Self-Employment Social Security Scheme (SKSPS).

Malaysia salary calculator

EPF, SOCSO, EIS, and PCB take-home pay estimator.

Estimate your Malaysia monthly take-home pay after EPF, SOCSO, EIS, and PCB. This calculator uses 2026 statutory rates for residents, non-residents, Malaysian citizens, and foreign workers, and accounts for annual bonuses when computing the monthly PCB withholding.

How the Malaysia salary calculator works

Your gross monthly salary is the starting point. From that figure, four statutory deductions are taken before you receive your net pay: EPF (Employees Provident Fund / KWSP), SOCSO (Social Security Organisation / PERKESO), EIS (Employment Insurance System), and PCB (Potongan Cukai Bulanan, the monthly income tax withholding).

EPF is split between you and your employer. For employees aged below 60, the standard employee rate is 11% of monthly wages while employers contribute 12% (or 13% for wages of RM5,000 and below). The employee rate dropped temporarily during COVID-era policies but has now returned to 11% as the default; you can choose to contribute more on a voluntary basis.

SOCSO and EIS are tiered contributions capped at a wage ceiling. SOCSO covers occupational injury and invalidity (Schemes I and II), while EIS provides income replacement for retrenched workers for up to six months. The combined employee share is typically below 1% of monthly wages, but the employer share is meaningful and shown separately in your payslip.

PCB is the trickiest line. Each month, your employer estimates how much income tax you will owe for the full calendar year — based on your year-to-date gross income, EPF, and any reliefs you have declared on Form TP1 — then divides that estimate so it is spread evenly across the remaining months. When you file your return in April–May, the actual tax is reconciled against the PCB already paid; over-withholding is refunded.

Residents (in Malaysia for at least 182 days in a calendar year) are taxed on a progressive scale from 0% to 30%. Non-residents and short-term visitors are taxed at a flat 30% on Malaysian-sourced employment income, with no access to most reliefs and rebates.

Salary deduction formulas

Net monthly take-home = Gross salary − EPF − SOCSO − EIS − PCB.

EPF (employee, default) = 11% × gross monthly wage, rounded up to the nearest ringgit. The combined employer + employee contribution feeds two accounts (Akaun Persaraan 75% and Akaun Sejahtera 25% under the 2024 restructure).

SOCSO (employee) is calculated from a tiered table where the maximum employee contribution is RM 24.75 per month for wages of RM 4,000 and above. The employer share for the same band is RM 86.65.

EIS (employee) = 0.2% of monthly wages, capped at RM 9.90 per month (wage ceiling RM 5,000). Employer contributes a matching 0.2%.

PCB (resident) = MAX(0, lookup(annualised taxable income − reliefs, progressive brackets) − previously-paid PCB − zakat paid through payroll) ÷ months remaining in the year. Non-resident PCB = 30% × monthly chargeable income.

Malaysia resident income tax brackets (2026)

Chargeable income (RM)	Marginal rate	Tax on band (RM)
0 – 5,000	0%	0
5,001 – 20,000	1%	150
20,001 – 35,000	3%	450
35,001 – 50,000	6%	900
50,001 – 70,000	11%	2,200
70,001 – 100,000	19%	5,700
100,001 – 400,000	25%	75,000
400,001 – 600,000	26%	52,000
600,001 – 2,000,000	28%	392,000
Above 2,000,000	30%	—

Tax is computed cumulatively across all bands. Reliefs (EPF, life insurance, lifestyle, SSPN, medical, etc.) reduce chargeable income before this table is applied.

Worked examples

Example 1 — RM 6,000 salary, Malaysian resident, no dependants

Monthly gross: RM 6,000
EPF rate: 11%
Annual bonus: RM 0
Other declared relief beyond EPF: RM 0

Result: EPF RM 660/month, SOCSO RM 24.75, EIS RM 9.90, PCB roughly RM 95–110 depending on reliefs claimed. Estimated monthly take-home: ~RM 5,200.

Example 2 — RM 12,000 salary + RM 12,000 annual bonus

Monthly gross: RM 12,000
EPF rate: 11%
Annual bonus paid in December: RM 12,000

Result: Annualised income RM 156,000 lands in the 25% marginal bracket. Monthly take-home settles around RM 9,300–9,500; the December bonus month has a higher PCB because the entire bonus is taxed at the marginal rate in that period.

Example 3 — RM 8,000 salary, non-resident

Monthly gross: RM 8,000
Resident status: Non-resident
EPF: not contributing

Result: PCB = 30% × RM 8,000 = RM 2,400. SOCSO/EIS may still apply depending on the work permit. Estimated take-home ~RM 5,600 before any employer-side deductions.

Frequently asked questions

Is the take-home pay shown my final salary?: No — it is an estimate. PCB is reconciled annually when you file taxes (Form BE for employees with employment income only, Form B for those with business income). Reliefs, rebates, and zakat payments can lower your final tax bill, often resulting in a small refund.
What is the difference between PCB and income tax?: PCB is the monthly amount your employer withholds and remits to LHDN on your behalf. Your final income tax is what the law actually requires you to pay, calculated when you file your annual tax return. PCB is a pre-payment toward that final amount.
Do foreign workers contribute to EPF?: EPF contribution is voluntary for foreign workers (those holding a work pass other than permanent residence). If they opt in, the employee rate is 11% and the employer rate is a fixed RM 5 per month per worker. SOCSO is mandatory for foreign workers under the Employees' Social Security Act since 1 January 2019.
How are bonuses taxed in Malaysia?: Bonuses are added to your annual taxable income and taxed at your marginal rate. In the month a bonus is paid, your employer applies a specific PCB formula that may make that month's deduction look unusually large, but the annual total is unchanged. A larger bonus simply pushes part of your annual income into the next higher bracket.
What if I am a non-resident for tax purposes?: Non-residents (in Malaysia for fewer than 182 days in a calendar year) are taxed at a flat 30% on Malaysian-sourced employment income, with no access to most reliefs and rebates. Tax treaties may offer relief if you are taxed in your home country on the same income.
Can I lower my PCB by submitting reliefs to my employer?: Yes — fill out Form TP1 to declare reliefs (life insurance, medical, lifestyle, SSPN, EPF beyond the default, etc.) and Form TP3 to declare zakat paid. Your employer will reduce subsequent PCB withholdings accordingly, improving your monthly cash flow.
Does this calculator include the EPF i-Saraan / voluntary contribution?: No. The calculator uses the statutory employee rate (default 11%). Voluntary contributions through i-Saraan or self-top-ups are separate and may qualify for additional tax relief up to the applicable cap.
What about SOCSO and EIS for company directors?: Owners and directors who draw a salary through PAYE are typically subject to SOCSO and EIS like other employees. Sole-proprietors and partners are not — but they can opt in via the Self-Employment Social Security Scheme (SKSPS).