Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 1,728
Employees' Provident Fund (EPF)
- RM 203
Social Security Organization (SOCSO) contribution
- RM 9.39
Employment Insurance System (EIS) contribution
- RM 3.88
Total tax
- RM 216
Net pay
* RM 1,512
Marginal tax rate
8.2%
Average tax rate
12.5%
87.5%
Net pay
12.5%
Total tax
Total tax
Net pay
Summary
If you make RM 1,728 a year living in Malaysia, you will be taxed RM 216. That means that your net pay will be RM 1,512 per year, or RM 126 per month. Your average tax rate is 12.5% and your marginal tax rate is 8.2%. 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 8.16, hence, your net pay will only increase by RM 91.84.
Bonus Example
A RM 1,000 bonus will generate an extra RM 918 of net incomes. A RM 5,000 bonus will generate an extra RM 4,592 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.