Take a resident employee under 60 earning RM6,000 a month with no children. EPF takes 11 percent, which is RM660. SOCSO at 0.5 percent and EIS at 0.2 percent come to RM42 together, since the wage is under the RM6,000 ceiling. For income tax the tool annualises the RM72,000 gross, then deducts reliefs: the automatic RM9,000 individual relief, EPF relief capped at RM4,000, and the SOCSO and EIS relief capped at RM350. That leaves chargeable income of RM58,650, on which the annual tax after the bands is about RM2,452, or close to RM204 a month. Subtracting EPF, SOCSO, EIS, and tax from the RM6,000 gross leaves take-home pay of about RM5,094 a month, which is roughly RM61,125 a year.
Item
Monthly (RM)
Gross salary
6,000.00
EPF employee (11%)
660.00
SOCSO + EIS
42.00
Income tax (PCB)
204.29
Take-home pay
5,093.71
How it is calculated
Three statutory deductions reduce a Malaysian salary before you receive it. EPF takes 11 percent from employees below 60, while the employer adds 12 or 13 percent that does not affect your take-home. SOCSO and EIS are small social insurance contributions calculated on wages up to RM6,000 a month, so they stop rising above that wage. Income tax is withheld monthly as PCB, also called MTD, and is based on chargeable income, which is annual pay less reliefs. Because EPF and the SOCSO and EIS relief shrink chargeable income, they lower the tax due as well as the cash deducted. This tool applies the automatic individual relief, a capped EPF relief, and child relief where entered, so it gives a close estimate rather than the exact PCB schedule, which also factors items like bonus months and additional reliefs you may claim.
Frequently asked questions
What is deducted from my Malaysian salary?
Three statutory deductions reduce gross pay: EPF at 11 percent for employees below 60, SOCSO and EIS on wages up to the RM6,000 ceiling, and monthly income tax (PCB/MTD). EPF and the SOCSO/EIS relief reduce your chargeable income, which lowers the income tax due. This tool applies the automatic individual relief plus a capped EPF relief.
Why does EPF reduce my income tax as well as my take-home pay?
EPF employee contributions are treated as a tax relief capped at RM4,000 a year. This means they reduce your chargeable income before tax is calculated, so they lower both your take-home pay in the month and the income tax withheld monthly as PCB. The employer's EPF contribution is paid on top of your salary and does not affect your take-home or your relief entitlement.
How does PCB differ from my actual year-end tax bill?
PCB (Potongan Cukai Berjadual), also called MTD, is an estimate withheld by your employer each month based on your salary and a standard set of reliefs. Your actual tax for the year is settled when you file your return with LHDN. If you have additional reliefs such as lifestyle spending, medical expenses, or SSPN deposits that the PCB calculation did not account for, you will receive a refund of the over-withheld amount.
Do EPF contribution rates change after age 60?
Yes. Employees aged 60 and above pay a reduced EPF employee contribution rate, and the employer rate also drops. This calculator separates the two age groups so you can see the difference in take-home pay. At lower contribution rates, a larger share of gross salary reaches your pocket each month, though retirement savings accumulate more slowly if you continue working past 60.