Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 1,032
Employees' Provident Fund (EPF)
- RM 138
Social Security Organization (SOCSO) contribution
- RM 5.90
Employment Insurance System (EIS) contribution
- RM 2.57
Total tax
- RM 146
Net pay
* RM 886
Marginal tax rate
14.1%
Average tax rate
14.2%
85.8%
Net pay
14.2%
Total tax
Total tax
Net pay
The Taxberg
RM 886
Net pay
RM 181
Tax the employer pays
RM 146
Tax you pay
Total tax paid
RM 327
Did you know your employer also pays tax on your salary? It costs the employer RM 181 to pay you RM 1,032. In other words, every time you spend RM 10 of your hard-earned money, RM 3.17 goes to the government.
Real tax rate
26.9%
So, with you and the employer both paying tax, what used to be a 14.2% tax rate now rises to 26.9%, meaning your real tax rate is actually 12.7% higher than what it seemed at first.
Summary
If you make RM 1,032 a year living in Malaysia, you will be taxed RM 146. That means that your net pay will be RM 886 per year, or RM 73.83 per month. Your average tax rate is 14.2% and your marginal tax rate is 14.1%. This marginal tax rate means that your immediate additional income will be taxed at this rate. For instance, an increase of RM 100 in your salary will be taxed RM 14.10, hence, your net pay will only increase by RM 85.90.
Bonus Example
A RM 1,000 bonus will generate an extra RM 859 of net incomes. A RM 5,000 bonus will generate an extra RM 4,295 of net incomes.
North America
Country 
Net pay
Average tax
Rank
Canada
MYR 1016
1.6%
1
USA
MYR 943
8.7%
2
Middle East
Country 
Net pay
Average tax
Rank
Egypt
MYR 1032
0.0%
1
Saudi Arabia
MYR 1032
0.0%
2
United Arab Emirates
MYR 980
5.0%
3
Qatar
MYR 980
5.0%
4
Bahrain
MYR 949
8.0%
5
Oman
MYR 949
8.0%
6
Lebanon
MYR 942
8.7%
7
Kuwait
MYR 918
11.0%
8
Israel
MYR 896
13.2%
9
Turkey
MYR 869
15.8%
10
Show more
NOTE* Deductions are calculated based on the tables of Malaysia, income tax. For simplification purposes some variables (such as marital status and others) have been assumed. This document does not represent legal authority and shall be used for approximation purposes only.