How This Malaysian Salary Calculator Computes Your Net Pay (2025)

Overview

This calculator estimates your monthly take-home pay by applying Malaysia's statutory deductions in the following order: EPF, SOCSO, EIS, and income tax (PCB). The logic below mirrors exactly what's implemented in the app for the 2025 tax year.

1) EPF (Employees Provident Fund)

EPF is computed using the official EPF Third Schedule rules with rounding up to the next ringgit for contributions. The app’s EPF engine distinguishes by age and residency:

• Under 60 (Malaysian/PR/Non-Malaysian before Aug 1998): Employee 11%; Employer 13% (≤ RM5,000) or 12% (> RM5,000).
• Under 60 (Non‑Malaysian after Aug 1998): Employee 11%; Employer fixed RM5.00.
• Age 60 and above (Malaysian): Employee 0%; Employer 4%.
• Age 60 and above (PR/Non‑Malaysian before Aug 1998): Employee 5.5%; Employer 6.5% (≤ RM5,000) or 6% (> RM5,000).
• Age 60 and above (Non‑Malaysian after Aug 1998): Employee 5.5%; Employer fixed RM5.00.

All EPF computations round up to the next ringgit (for ≤ RM20,000 and > RM20,000 cases) before summing employee and employer amounts.

2) SOCSO

SOCSO contributions follow the contribution schedule by salary range. For employees under 60, both Employment Injury and Invalidity schemes apply. For age 60 and above, only the employer contributes under the Employment Injury scheme (employee contribution is RM0.00).

In this app, SOCSO values are mapped directly from the salary range table into ringgit amounts for employer and employee, then added together.

3) EIS

The Employment Insurance System applies only between ages 18–60. The calculator uses the official salary-range table to determine a fixed ringgit amount per month for both employer and employee (the two are equal). If you are 60 or above, EIS is not charged.

4) PCB (Monthly Tax Deduction)

For tax residents (0 182 days in Malaysia), PCB is derived from an annual estimate then divided by 12. Non-residents (< 182 days) are taxed at a flat 30% with no reliefs. The steps implemented are:

1. Annualize your salary: annualSalary = monthlySalary × 12.
2. Compute tax reliefs:
   
   • Personal relief: RM9,000
   • Spouse relief: RM4,000 (only for Married – Non‑Working Spouse category)
   • Child relief: RM2,000 per child
   • EPF relief: actual annual EPF employee contribution, capped at RM4,000
3. Taxable income: taxable = max(0, annualSalary − totalReliefs).
4. Apply the 2025 progressive brackets coded in the app (0% to 30% with bracket-specific adjustments).
5. Monthly PCB: annualTax ÷ 12 (never negative).

Residency rule: Residents (≥182 days) use progressive brackets with applicable reliefs; non-residents (<182 days) are taxed at a flat 30% with no reliefs. Your actual annual filing may differ.

Worked Example (Illustrative)

Assume: Salary RM5,000, Single, Under 60, Malaysian.

• EPF: Employee ≈ 11% (RM550); Employer 13% (RM650) → Total EPF ≈ RM1,200.
• SOCSO: Uses the 4,900–5,000 or 5,000–5,100 bracket amount from the table (employer and employee amounts are taken directly from the schedule).
• EIS: Uses the corresponding salary-range amount; employer = employee.
• PCB:
  • Annual salary = RM60,000
  • EPF relief capped at RM4,000 (since 11% × 12 × 5,000 = RM6,600 > RM4,000)
  • Taxable = 60,000 − (9,000 + 4,000) = RM47,000
  • Apply 2025 brackets, then divide by 12 for monthly PCB

Your net salary = Gross salary − (Employee EPF + Employee SOCSO + Employee EIS + PCB).

Edge Cases & Notes

• Age 60 and above: Employee EPF = 0% for Malaysians; EIS not applicable; SOCSO employee = 0.
• Non‑Malaysian (after Aug 1998): Employer EPF is a fixed RM5.00.
• Rounding: EPF contributions round up to the next ringgit before summing.
• Reliefs: The calculator includes personal, spouse (when applicable), child, and EPF relief up to RM4,000.

Transparency

These rules are implemented directly in the app’s code (EPF engine and the SOCSO/EIS/PCB calculations inside the calculator component). If statutory tables change, the calculator will be updated to reflect the latest guidance.

Quick Summary Table

Additional Worked Examples

Example 2: Non‑Malaysian (after Aug 1998), Under 60

Assume: Salary RM4,000, Single, Under 60, Non‑Malaysian registered after 1 Aug 1998.

• EPF: Employee ≈ 11% = RM440 (rounded up). Employer = fixed RM5.00.
• SOCSO: Uses the RM4,000‑range bracket values from the table (employer/employee per schedule).
• EIS: Uses the RM4,000‑range value; employer = employee.
• PCB: Not applied to non‑citizens in the monthly view (employee PCB = RM0.00).
• Net = Gross − (Employee EPF + Employee SOCSO + Employee EIS).

Example 3: Malaysian, Age 60+

Assume: Salary RM6,000, Malaysian, Age 60 and above.

• EPF: Employee 0%. Employer 4% = RM240 (rounded up).
• SOCSO: Employee = RM0.00; employer pays per 60+ table bracket.
• EIS: Not applicable (60+).
• PCB: Calculated for citizens. EPF relief does not apply at 60+ (in app: EPF relief counted only if under 60). Annualize, apply reliefs and 2025 brackets, then ÷12.
• Net = Gross − (Employee SOCSO + PCB).

Ringkasan (Bahasa Melayu)

• EPF: Di bawah 60 tahun, pekerja 11%; majikan 13% (≤ RM5,000) atau 12% (> RM5,000). Bukan warganegara selepas Ogos 1998: majikan tetap RM5.00. Umur 60+: warganegara pekerja 0%, majikan 4%.
• SOCSO: Berdasarkan jadual gaji. Umur 60+: pekerja RM0.00; majikan skim Kecederaan Pekerjaan sahaja.
• EIS: Hanya untuk umur 18–60; jumlah majikan = pekerja mengikut jadual.
• PCB: Kira tahunan → tolak pelepasan (peribadi 9k, pasangan 4k jika tidak bekerja, anak 2k setiap seorang, EPF ≤ 4k jika di bawah 60) → guna jadual progresif 2025 → bahagi 12.