If you work in Malaysia, you’ve probably wondered: “How much do I actually take home every month after EPF, SOCSO, and tax deductions?”
Your take-home pay (or net salary) is the amount you receive after all mandatory deductions from your gross income.
Knowing how to calculate it helps you budget better, plan savings, and even negotiate your salary confidently.
This guide explains how to calculate your take-home pay in Malaysia for 2025, with clear examples and breakdowns.
Understanding Gross Salary
Your gross salary is the full amount stated in your employment contract before any deductions.
It usually includes:
- Basic monthly salary
- Fixed allowances (housing, transport, etc.)
- Bonuses and commissions
- Overtime pay
Some employers include fixed incentives or travel allowances, but not reimbursements.
If you receive performance bonuses, you can estimate your deductions separately using the Malaysia Bonus Tax Calculator.
Mandatory Deductions in Malaysia
Before you receive your net pay, your employer must deduct several statutory contributions and taxes.
Here’s a breakdown of what affects your take-home pay:
| Deduction Type | Rate / Range | Purpose |
|---|---|---|
| EPF (Employees Provident Fund) | 11% (employee) | Retirement savings |
| SOCSO (Social Security) | ~0.5% | Injury and disability protection |
| EIS (Employment Insurance System) | 0.2% | Job loss protection |
| PCB (Monthly Tax Deduction) | Variable | Income tax contribution |
If your salary is RM 5,000, your mandatory deductions will typically be around 12–14% of your gross pay.
To estimate your statutory deductions in detail, use the Malaysia Salary Tax Calculator.
EPF Contributions and Their Impact
Your EPF contribution equals 11% of your monthly salary (for employees under age 60).
Your employer contributes an additional 12–13%, but that portion doesn’t affect your take-home pay.
Example:
If your gross salary is RM 6,000:
EPF deduction = RM 6,000 × 11% = RM 660
That RM 660 goes straight into your KWSP (retirement account), reducing your monthly net income.
EPF contributions are tax-deductible, meaning they lower your taxable income — learn more in How Does EPF Affect My Malaysia Taxes?
SOCSO and EIS Contributions
SOCSO and EIS are smaller but mandatory deductions that provide safety nets for employees.
| Deduction | Contribution | Who Pays |
|---|---|---|
| SOCSO (Social Security) | 0.5% (employee share) | Employee + Employer |
| EIS (Employment Insurance) | 0.2% (employee share) | Employee + Employer |
Example:
If your monthly salary is RM 6,000, you’ll contribute roughly RM 30 (SOCSO) and RM 12 (EIS).
Monthly Tax Deduction (PCB)
The Potongan Cukai Bulanan (PCB) is your monthly income tax deduction, automatically withheld by your employer.
LHDN calculates it based on your estimated annual income and tax reliefs.
PCB depends on:
- Your monthly income
- Marital status
- Number of dependents
- Claimed reliefs
If your annual taxable income is around RM 70,000, expect a PCB deduction of about RM 250–RM 300 per month.
You can review your eligible reliefs using the Malaysia Tax Relief Calculator.
Example of a Take-Home Pay Calculation
| Description | Amount (RM) |
|---|---|
| Gross monthly salary | 6,000 |
| EPF (11%) | 660 |
| SOCSO (0.5%) | 30 |
| EIS (0.2%) | 12 |
| PCB (tax) | 280 |
| Total Deductions | 982 |
| Estimated Take-Home Pay | 5,018 |
Your net salary would be RM 5,018 per month after all mandatory deductions.
How Bonuses or Overtime Affect Net Pay
If you receive a bonus or overtime, those earnings are taxed under the same rate brackets.
Your PCB for that month may increase temporarily depending on the bonus amount.
Example:
- Monthly salary: RM 6,000
- Bonus: RM 3,000
- EPF (11% of RM 9,000) = RM 990
- PCB may rise for that month due to higher chargeable income
You can simulate various bonus scenarios using the Malaysia Bonus Tax Calculator.
Take-Home Pay by Income Level
An overview for 2025 (residents, unmarried, standard EPF 11%):
| Gross Monthly Salary (RM) | EPF + SOCSO + EIS + Tax (RM) | Net Take-Home (RM) |
|---|---|---|
| 3,000 | ~360 | 2,640 |
| 5,000 | ~650 | 4,350 |
| 8,000 | ~1,100 | 6,900 |
| 10,000 | ~1,600 | 8,400 |
| 15,000 | ~2,800 | 12,200 |
Actual take-home pay may differ based on personal tax reliefs and allowances.
Ways to Increase Your Take-Home Pay
While statutory deductions are fixed, there are practical ways to increase your effective take-home pay:
- Claim all eligible tax reliefs (medical, lifestyle, EPF + insurance).
- Make use of company benefits such as internet or transport allowances.
- Contribute to approved schemes like PRS (Private Retirement Scheme) for an extra RM 3,000 relief.
- Plan bonus timing strategically to manage your tax bracket.
You can review your estimated deductions and reliefs using the Monthly Tax Deduction Calculator.
Frequently Asked Questions
What’s included in my take-home pay?
Your net salary after EPF, SOCSO, EIS, and PCB deductions.
Do all allowances get taxed?
Most fixed allowances are taxable, but reimbursements (e.g., travel or parking) are not.
Is my EPF contribution voluntary?
It’s mandatory for employees but optional for freelancers or self-employed individuals.
Why does my PCB change each month?
Because it’s based on cumulative income — bonuses or overtime can temporarily increase deductions.
Can I increase my take-home pay legally?
Yes, by claiming tax reliefs, optimizing benefits, and structuring your salary smartly.
Willium is the creator of IncomeTaxCalculatorMalaysia.com, a trusted resource for accurate and easy-to-use tax calculation tools. With a deep understanding of Malaysia’s tax system, he helps individuals and businesses estimate their income tax with confidence. Willium is dedicated to simplifying financial decisions by offering clear, reliable tools and expert guidance, empowering users to stay informed and save time.