Salary Calculator Malaysia: EPF, SOCSO, EIS and PCB Explained

Your Payslip Shows Less Than Your Offer Letter

Your offer letter promises one number. Your bank account shows another. The difference is statutory deductions: EPF, SOCSO, EIS and PCB.

These deductions are normal for every employee in Malaysia. Understanding them helps you plan your budget, negotiate salary and avoid surprises at the end of the month. This guide explains each one, then shows you how a salary calculator malaysia can estimate your net pay.

What Goes Into Every Malaysian Payslip

Four main deductions appear on most Malaysian payslips. Three are shared with your employer. One is income tax paid monthly.

Each deduction has its own rate, ceiling and purpose. None of them are optional for a standard employee.

• EPF: retirement savings, paid by you and your employer
• SOCSO: workplace injury and invalidity coverage
• EIS: employment insurance against job loss
• PCB: monthly income tax deducted in advance

EPF: Retirement Savings, Not a Tax

EPF (Employees Provident Fund) is run by KWSP. It is a forced savings scheme, not a tax. Your money stays in your account and grows with declared dividends.

The standard employee contribution is 11% of your monthly wage. Your employer contributes 12%, or 13% for monthly wages of RM5,000 and below. You can withdraw EPF for specific purposes like housing and education, but the rules change from time to time. Check the current KWSP rates before planning.

SOCSO and EIS: Your Safety Nets

SOCSO (also called PERKESO) covers you if you are injured at work, fall sick because of your job, or become disabled. Contributions are based on monthly wages, capped at RM6,000. The employee share is about 0.5% and the employer share is about 1.75%, depending on your wage bracket.

EIS (Employment Insurance System) is a smaller scheme for job loss. It provides temporary cash aid and re-employment help. Both you and your employer pay 0.2%, capped at the same RM6,000 ceiling.

PCB: Monthly Income Tax Deduction

PCB (Potongan Cukai Bulanan) is income tax deducted from your salary every month. Your employer pays it to LHDN on your behalf. At year end, it is settled against your annual tax return.

PCB is not a fixed percentage. It depends on your estimated annual income, tax reliefs and marital status. Fewer reliefs usually means a higher monthly deduction. That is why it is the hardest figure to guess by hand. A calculator applies the official monthly deduction schedule the same way a payroll team does.

How to Use a Salary Calculator Malaysia

Enter your monthly gross salary. The calculator applies the current EPF, SOCSO and EIS rates, then estimates your PCB. The result is your estimated take-home pay.

Estimates are for planning, not official figures. Your actual payslip depends on your exact wage bracket, reliefs and any employer-specific adjustments. Always confirm with your HR team and the official sources: KWSP, PERKESO and LHDN.

• Step 1: type your monthly gross salary
• Step 2: review the deduction breakdown
• Step 3: use the net pay figure to plan your budget