Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 10,866
Employees' Provident Fund (EPF)
- RM 1,209
Social Security Organization (SOCSO) contribution
- RM 52.93
Employment Insurance System (EIS) contribution
- RM 21.17
Total tax
- RM 1,283
Net pay
* RM 9,583
Marginal tax rate
12.0%
Average tax rate
11.8%
88.2%
Net pay
11.8%
Total tax
Total tax
Net pay
The Taxberg
RM 9,583
Net pay
RM 1,634
Tax the employer pays
RM 1,283
Tax you pay
Total tax paid
RM 2,918
Did you know your employer also pays tax on your salary? It costs the employer RM 1,634 to pay you RM 10,866. In other words, every time you spend RM 10 of your hard-earned money, RM 2.69 goes to the government.
Real tax rate
23.3%
So, with you and the employer both paying tax, what used to be a 11.8% tax rate now rises to 23.3%, meaning your real tax rate is actually 11.5% higher than what it seemed at first.
Summary
If you make RM 10,866 a year living in Malaysia, you will be taxed RM 1,283. That means that your net pay will be RM 9,583 per year, or RM 799 per month. Your average tax rate is 11.8% and your marginal tax rate is 12.0%. 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 12.04, hence, your net pay will only increase by RM 87.96.
Bonus Example
A RM 1,000 bonus will generate an extra RM 880 of net incomes. A RM 5,000 bonus will generate an extra RM 4,398 of net incomes.
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.