Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 125,000
Employees' Provident Fund (EPF)
- RM 13,754
Social Security Organization (SOCSO) contribution
- RM 237
Employment Insurance System (EIS) contribution
- RM 94.80
Tax
- RM 13,584
Total tax
- RM 27,671
Net pay
* RM 97,329
Marginal tax rate
34.2%
Average tax rate
22.1%
77.9%
Net pay
22.1%
Total tax
Total tax
Net pay
Summary
If you make RM 125,000 a year living in Malaysia, you will be taxed RM 27,671. That means that your net pay will be RM 97,329 per year, or RM 8,111 per month. Your average tax rate is 22.1% and your marginal tax rate is 34.2%. 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 34.16, hence, your net pay will only increase by RM 65.84.
Bonus Example
A RM 1,000 bonus will generate an extra RM 658 of net incomes. A RM 5,000 bonus will generate an extra RM 3,292 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.