Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 12,750
Employees' Provident Fund (EPF)
- RM 1,420
Social Security Organization (SOCSO) contribution
- RM 63.84
Employment Insurance System (EIS) contribution
- RM 25.54
Total tax
- RM 1,510
Net pay
* RM 11,240
Marginal tax rate
11.7%
Average tax rate
11.8%
88.2%
Net pay
11.8%
Total tax
Total tax
Net pay
The Taxberg
RM 11,240
Net pay
RM 1,924
Tax the employer pays
RM 1,510
Tax you pay
Total tax paid
RM 3,434
Did you know your employer also pays tax on your salary? It costs the employer RM 1,924 to pay you RM 12,750. In other words, every time you spend RM 10 of your hard-earned money, RM 2.69 goes to the government.
Real tax rate
23.4%
So, with you and the employer both paying tax, what used to be a 11.8% tax rate now rises to 23.4%, meaning your real tax rate is actually 11.6% higher than what it seemed at first.
Summary
If you make RM 12,750 a year living in Malaysia, you will be taxed RM 1,510. That means that your net pay will be RM 11,240 per year, or RM 937 per month. Your average tax rate is 11.8% and your marginal tax rate is 11.7%. 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 11.67, hence, your net pay will only increase by RM 88.33.
Bonus Example
A RM 1,000 bonus will generate an extra RM 883 of net incomes. A RM 5,000 bonus will generate an extra RM 4,417 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
MYR 11646
8.7%
1
Canada
MYR 11201
12.2%
2
Asia / Pacific
Country 
Net pay
Average tax
Rank
Australia
MYR 12750
0.0%
1
Singapore
MYR 12750
0.0%
2
Hong Kong
MYR 12750
0.0%
3
Pakistan
MYR 12623
1.0%
4
Thailand
MYR 12112
5.0%
5
Philippines
MYR 12015
5.8%
6
Indonesia
MYR 11717
8.1%
7
Taiwan
MYR 11621
8.9%
8
South Korea
MYR 11387
10.7%
9
Malaysia
MYR 11240
11.8%
10
New Zealand
MYR 11234
11.9%
11
India
MYR 11220
12.0%
12
China
MYR 11069
13.2%
13
Vietnam
MYR 10795
15.3%
14
Japan
MYR 10360
18.7%
15
Kazakhstan
MYR 10098
20.8%
16
Show more
Latin America
Country 
Net pay
Average tax
Rank
Mexico
MYR 12404
2.7%
1
Colombia
MYR 13151
7.2%
2
Brazil
MYR 11767
7.7%
3
Puerto Rico
MYR 11736
8.0%
4
Ecuador
MYR 11545
9.5%
5
Guatemala
MYR 11527
9.6%
6
Costa Rica
MYR 11411
10.5%
7
Panama
MYR 11347
11.0%
8
Peru
MYR 11156
12.5%
9
Argentina
MYR 10583
17.0%
10
Chile
MYR 10506
17.6%
11
Uruguay
MYR 10442
18.1%
12
Show more
Africa
Country 
Net pay
Average tax
Rank
South Africa
MYR 12622
1.0%
1
Morocco
MYR 11878
6.8%
2
Kenya
MYR 10977
13.9%
3
Ivory Coast
MYR 10934
14.3%
4
Zambia
MYR 10807
15.2%
5
Cameroon
MYR 10757
15.6%
6
Mozambique
MYR 10509
17.6%
7
Ghana
MYR 10191
20.1%
8
Angola
MYR 9798
23.2%
9
Senegal
MYR 9778
23.3%
10
Uganda
MYR 9609
24.6%
11
Nigeria
MYR 9223
27.7%
12
Show more
Middle East
Country 
Net pay
Average tax
Rank
Saudi Arabia
MYR 12750
0.0%
1
United Arab Emirates
MYR 12112
5.0%
2
Qatar
MYR 12113
5.0%
3
Bahrain
MYR 11730
8.0%
4
Oman
MYR 11730
8.0%
5
Kuwait
MYR 11348
11.0%
6
Israel
MYR 11073
13.2%
7
Lebanon
MYR 10400
18.4%
8
Egypt
MYR 10015
21.5%
9
Turkey
MYR 8264
35.2%
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.