Malaysia Salary Calculator
Calculate employer costs and employee net take-home pay in Malaysia. Includes EPF, SOCSO, EIS, the SKBBK (Lindung 24 Jam) scheme, PCB income tax, and optional HRD Corp levy and EOR fee.
What's new for Malaysian payroll in 2026
- SKBBK / Lindung 24 Jam launched 1 June 2026. Employee-only 0.75% deduction (capped RM6,000). Mandatory for foreign workers; voluntary for Malaysians since 8 July 2026.
- Foreign worker EPF live since 1 October 2025. 2% employee + 2% employer, replacing the old flat RM5 employer-only scheme. Domestic workers excluded.
- Foreign worker SOCSO Invalidity Scheme since July 2024. Adds 0.5% employer + 0.5% foreign worker on top of the existing 1.25% Employment Injury.
- PCB brackets and tax reliefs unchanged for YA 2026. KPMG confirmed the individual (RM9,000), spouse (RM4,000), child (RM2,000), and EPF (RM4,000) reliefs carry over from YA 2025 with no rate changes.
Understanding Malaysia Payroll Costs
Malaysia operates a straightforward statutory contribution system that adds approximately 14 to 16 percent on top of gross salary for employer-side costs. The largest component is the Employees Provident Fund (EPF), where the employer contributes 12 to 13 percent depending on salary level. SOCSO and EIS contributions are determined by an official table with RM100 salary brackets, capped at a wage ceiling of RM6,000 per month.
On the employee side, EPF at 11 percent is the largest deduction, followed by PCB (monthly tax deduction) which varies based on income level, marital status, and number of dependants. From June 2026 employees may also contribute 0.75 percent to the SKBBK (Lindung 24 Jam) accident scheme. Malaysia does not have a mandatory 13th month pay, making the total cost structure more predictable compared to neighbouring countries like the Philippines or Indonesia.
Employees Provident Fund (KWSP)
EPF is Malaysia's mandatory retirement savings scheme managed by KWSP (Kumpulan Wang Simpanan Pekerja). Employees contribute 11% of their monthly wages, while employers contribute 13% for employees earning RM5,000 or below, and 12% for those earning above RM5,000. For wages up to RM20,000, contributions follow the KWSP Third Schedule table rather than an exact percentage.
| Component | Rate | Condition |
|---|---|---|
| Employee share | 11% | All salary levels |
| Employer share | 13% | Salary ≤ RM5,000 |
| Employer share | 12% | Salary > RM5,000 |
| Foreign worker (each side) | 2% | Mandatory since Oct 2025 |
| Malaysian / PR aged 60+ | 0% / 4% | Employee / employer |
Social Security & Employment Insurance
SOCSO (PERKESO) provides employment injury and invalidity coverage. Malaysian employees under 60 are covered under First Category (employer 1.75%, employee 0.5%, both capped at RM6,000 monthly wages), while those aged 60 and above fall under Second Category (employer-only, injury cover). Foreign workers are covered by both the Employment Injury Scheme (1.25% employer-only, since 2019) and, from July 2024, the Invalidity Scheme (0.5% employer + 0.5% employee). EIS provides unemployment benefits at 0.2% each side for Malaysians and PRs aged 18-60 only.
PCB / Monthly Tax Deduction (YA 2026)
PCB (Potongan Cukai Bulanan) is Malaysia's pay-as-you-earn income tax system. Employers deduct estimated income tax from monthly salaries and remit to LHDN (Inland Revenue Board). Tax rates are progressive from 0% to 30% on chargeable income after reliefs. The YA 2026 brackets are unchanged from YA 2025.
| Chargeable Income (Annual) | Tax Rate |
|---|---|
| First 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% |
| Above RM2,000,000 | 30% |
Human Resources Development Corporation
HRD Corp (formerly HRDF) is a government agency that collects a levy from employers to fund employee training and development. Employers in covered industries with 10 or more Malaysian employees must pay 1% of each employee's monthly wages. Employers with 5 to 9 employees may register voluntarily at a reduced rate of 0.5%. The levy is employer-only — no amount is deducted from the employee. Covered sectors include manufacturing, services, mining, quarrying, construction, and several others as gazetted by the Minister.
Payment Deadlines
All statutory contributions must be remitted by the 15th of the following month. Late payments attract penalties: EPF charges a dividend loss plus 10% penalty; SOCSO and EIS impose penalties under the relevant Acts; LHDN charges a 10% PCB late payment penalty. Employers are responsible for ensuring timely remittance of both employer and employee portions.
| Contribution | Deadline | Late Penalty |
|---|---|---|
| EPF (KWSP) | 15th of next month | 10% + dividend loss |
| SOCSO (PERKESO) | 15th of next month | Under SOCSO Act |
| EIS (SIP) | 15th of next month | Under EIS Act |
| SKBBK (PERKESO) | 15th of next month | Under SOCSO Act |
| PCB (LHDN) | 15th of next month | 10% penalty |
| HRD Corp | 15th of next month | Under PSMB Act |
Malaysia Salary Calculator FAQ
Common questions about payroll contributions and tax in Malaysia.
The PCB (Potongan Cukai Bulanan) schedule used by employers follows the Jadual PCB issued by LHDN, which uses a specific lookup methodology that factors in cumulative earnings, reliefs claimed on the TP1 form, and prior months’ deductions. This calculator estimates PCB by annualising the monthly salary, applying standard reliefs, and dividing by 12. Real PCB may differ slightly due to rounding conventions, bonus months, or additional reliefs not modelled here.
Yes. Since 1 October 2025, EPF is mandatory for non-Malaysian citizen employees who hold a valid work pass (domestic workers excluded). Both the employer and the foreign employee contribute 2% of monthly wages each, a lower rate than the 11% / 12-13% that applies to Malaysians and permanent residents. SOCSO First Category (injury and invalidity) also applies to foreign workers, while EIS does not cover non-Malaysian employees. Toggle the Employee input at the top of the calculator between Malaysian/PR and Foreign worker to see the difference.
SKBBK (Skim Kemalangan Bukan Bencana Kerja), branded Lindung 24 Jam, is a PERKESO scheme that began on 1 June 2026 giving 24-hour cover for accidents outside working hours. It is an employee-only deduction of 0.75% of wages, capped at the RM6,000 ceiling, so a maximum of about RM45 a month. Following a Cabinet decision on 8 July 2026, it is voluntary for Malaysian employees, who could opt out through PERKESO between 13 July and 31 August 2026, but it remains mandatory for foreign workers. Use the SKBBK toggle to include or exclude it.
The SOCSO (PERKESO) insured wage ceiling is RM6,000 per month, raised from RM4,000 effective October 2024. Employees earning above RM6,000 still contribute based on the RM6,000 bracket, where First Category is a maximum of RM104.65 from the employer and RM29.90 from the employee. Contribution amounts are fixed by the official table rather than a straight percentage.
The EOR (Employer of Record) fee shown when you tick "Include EOR fee" is 10% of the total pre-EOR employer cost (gross salary plus all statutory contributions), bounded by a minimum of USD 49.99 and a maximum of USD 250 per month, converted to Malaysian Ringgit at a fixed rate of RM 4.20 per USD (approximately RM 210 minimum and RM 1,050 maximum). This is the same commercial model used across our Philippines and Indonesia calculators. Your actual quote may vary based on scope, headcount, and any add-on services like benefits administration or immigration support.
HRD Corp (formerly HRDF) levy is mandatory for employers in covered industries with 10 or more Malaysian employees, at 1% of monthly wages. Employers with 5 to 9 employees may register voluntarily at 0.5%. Sectors covered include manufacturing, services, mining, and more. The levy funds employee training and upskilling programmes.
Beyond the individual (RM9,000), spouse (RM4,000), and child (RM2,000) reliefs modelled here, employees can claim relief for medical expenses (up to RM10,000), lifestyle expenses (RM2,500), education fees (RM7,000), SSPN savings (RM8,000), private retirement scheme (RM3,000), life insurance (RM3,000), and several others. The full list is published annually by LHDN (Inland Revenue Board).
No. Unlike the Philippines, Malaysia does not have a statutory 13th month pay requirement. Bonuses are discretionary and determined by employment contracts or company policy. Some government servants receive a minimum bonus equivalent, but this does not apply to private sector employees by law.
