1. What is the Salary And Pension Calculator Malaysia?

The Salary And Pension Calculator Malaysia estimates net salary from gross salary by deducting tax and EPF (Employees Provident Fund) contributions. It provides Malaysian employees with an accurate calculation of their take-home pay.

2. How Does the Calculator Work?

The calculator uses the formula:

Where:

• Gross Salary — Total salary before deductions (RM)
• Tax — Income tax based on Malaysian tax brackets
• EPF Contribution — 11% employee contribution to Employees Provident Fund

Explanation: The calculation accounts for mandatory deductions including income tax and EPF contributions to determine the actual take-home salary.

3. Importance of Salary Calculation

Details: Accurate salary calculation is crucial for financial planning, budgeting, and understanding take-home pay after mandatory Malaysian deductions.

4. Using the Calculator

Tips: Enter gross salary in Malaysian Ringgit (RM). The calculator will automatically compute tax and EPF deductions to show your net salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the current EPF contribution rate?
A: The standard employee contribution rate is 11% of gross salary, while employers contribute 12-13% depending on salary level.

Q2: How is Malaysian income tax calculated?
A: Malaysian income tax uses a progressive tax system with different tax brackets and rates based on annual taxable income.

Q3: Are there other deductions from salary?
A: Yes, additional deductions may include SOCSO, EIS, and PCB (monthly tax deductions) depending on individual circumstances.

Q4: Is EPF contribution mandatory?
A: Yes, EPF contribution is mandatory for all Malaysian employees and their employers under the Employees Provident Fund Act 1991.

Q5: Can I change my EPF contribution rate?
A: Employees can opt to contribute at a higher rate, but the minimum employee contribution is 11% of gross salary.