Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 1,638,780
Employees' Provident Fund (EPF)
- RM 180,273
Social Security Organization (SOCSO) contribution
- RM 237
Employment Insurance System (EIS) contribution
- RM 94.80
Tax
- RM 412,668
Total tax
- RM 593,273
Net pay
* RM 1,045,507
Marginal tax rate
39.0%
Average tax rate
36.2%
63.8%
Net pay
36.2%
Total tax
Total tax
Net pay
Summary
If you make RM 1,638,780 a year living in Malaysia, you will be taxed RM 593,273. That means that your net pay will be RM 1,045,507 per year, or RM 87,126 per month. Your average tax rate is 36.2% and your marginal tax rate is 39.0%. 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 39, hence, your net pay will only increase by RM 61.
Bonus Example
A RM 1,000 bonus will generate an extra RM 610 of net incomes. A RM 5,000 bonus will generate an extra RM 3,050 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.