EPF Rate
11%
Employee
SOCSO
RM0.10–21
Monthly
EIS
0.2%
Of Gross Salary
PCB Rates
0%–30%
Progressive Tax
What Is EPF (KWSP) & How Much Is Deducted?
The Employees Provident Fund (EPF), known locally as KWSP, is Malaysia's mandatory retirement savings scheme. Every month, both you and your employer contribute a percentage of your salary to your EPF account.
| Monthly Salary | Employee EPF | Employer EPF |
|---|---|---|
| ≤ RM5,000 | 11% | 13% |
| > RM5,000 | 11% | 12% |
What Is SOCSO (PERKESO)?
The Social Security Organization (SOCSO), managed by PERKESO, provides social security protection to Malaysian employees. It covers the Employment Injury Scheme and the Invalidity Pension Scheme.
| Monthly Wage Bracket | Employee Contribution |
|---|---|
| RM0 – RM30 | RM0.10 |
| RM1,000.01 – RM1,100 | RM4.40 |
| RM3,000.01 – RM3,100 | RM12.40 |
| ≥ RM4,900.01 | RM21.00 (max) |
What Is EIS (SIP)?
The Employment Insurance System (EIS), or SIP, provides temporary financial support to employees who lose their jobs. The contribution is 0.2% of gross salary.
- Financial aid for up to 6 months after retrenchment
- Job search assistance and career counselling
- Training and upskilling programs
- Early re-employment allowance
What Is PCB (Potongan Cukai Bulanan)?
PCB is the monthly income tax deduction your employer withholds and remits to LHDN. Malaysia uses a progressive tax system.
| Annual Chargeable Income | Tax Rate |
|---|---|
| RM0 – RM5,000 | 0% |
| RM5,001 – RM20,000 | 1% |
| RM20,001 – RM35,000 | 3% |
| RM35,001 – RM50,000 | 6% |
| RM50,001 – RM70,000 | 11% |
| RM70,001 – RM100,000 | 19% |
| RM100,001 – RM400,000 | 25% |
| RM400,001 – RM600,000 | 26% |
| RM600,001 – RM2,000,000 | 28% |
| > RM2,000,000 | 30% |
How Is Net Salary Calculated in Malaysia?
Net Salary = (Base Salary + Allowances + Bonuses)
− EPF − SOCSO − EIS − PCB
Calculate Gross Monthly Income
Add your base salary, fixed monthly allowances, and any recurring bonuses or commissions.
Subtract EPF
Deduct 11% of your salary (up to RM1,100/month).
Subtract SOCSO
Deduct based on your wage bracket (RM0.10 to RM21.00/month).
Subtract EIS
Deduct 0.2% of gross salary (max RM2.50/month).
Subtract Estimated PCB
Deduct monthly income tax based on LHDN's progressive rates.
Your Take-Home Pay
The remaining amount is your net salary deposited into your bank account.
Frequently Asked Questions About Salary in Malaysia
How is salary calculated in Malaysia?
Your gross salary includes your base pay, fixed allowances, and any monthly bonuses. From this, four mandatory deductions are subtracted: EPF (11%), SOCSO, EIS (0.2%), and PCB. The result is your net take-home pay.
What is the latest EPF contribution rate?
The statutory EPF rate remains at 11% for employees and 13% for employers (salaries ≤ RM5,000). For salaries above RM5,000, the employer rate is 12%.
Who needs to pay PCB in Malaysia?
PCB applies to all employees earning above the minimum threshold (approximately RM34,000 annually after EPF relief). Your employer deducts PCB monthly and remits it to LHDN.
What is the difference between SOCSO and EIS?
SOCSO (PERKESO) covers workplace injuries and invalidity. EIS provides temporary financial assistance if you lose your job. Both are mandatory.
Can I opt out of EPF contributions?
No. EPF is mandatory for all Malaysian employees and permanent residents under the EPF Act 1991.
How do I calculate my net salary after all deductions?
Use the free DuitTools salary calculator. Simply enter your monthly salary and the tool instantly shows your EPF, SOCSO, EIS, and PCB deductions, plus your final take-home pay.
Disclaimer: The information on this page is for educational purposes only. Verify with official sources: KWSP (kwsp.gov.my), PERKESO (perkeso.gov.my), and LHDN (hasil.gov.my).