Question 1

How is take-home pay calculated in Malaysia?

Accepted Answer

Take-home pay is gross salary minus EPF (employee 11%), SOCSO (0.5%, capped at RM6,000 wages), EIS (0.2%, capped at RM6,000 wages) and monthly income tax. Income tax is based on annual chargeable income (gross minus reliefs) at LHDN's progressive rates.

Question 2

How much EPF is deducted from salary in Malaysia?

Accepted Answer

The employee EPF contribution rate is 11% of monthly wages for citizens and permanent residents under 60 (the employer adds 12% to 13%). It resets to the 11% statutory rate after the temporary 9% pandemic reduction ended in 2022.

Question 3

What is the income tax rate in Malaysia?

Accepted Answer

Resident individual income tax is progressive from 0% (first RM5,000 of chargeable income) up to 30% (above RM2,000,000), with an automatic individual relief of RM9,000 and EPF relief up to RM4,000 (YA2024/2025, LHDN).

What's your take-home pay?

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