Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 184
Employees' Provident Fund (EPF)
- RM 36
Social Security Organization (SOCSO) contribution
- RM 1.20
Employment Insurance System (EIS) contribution
- RM 0.60
Total tax
- RM 37.80
Net pay
* RM 146
Marginal tax rate
15.4%
Average tax rate
20.5%
79.5%
Net pay
20.5%
Total tax
Total tax
Net pay
The Taxberg
RM 146
Net pay
RM 41.40
Tax the employer pays
RM 37.80
Tax you pay
Total tax paid
RM 79.20
Did you know your employer also pays tax on your salary? It costs the employer RM 41.40 to pay you RM 184. In other words, every time you spend RM 10 of your hard-earned money, RM 4.30 goes to the government.
Real tax rate
35.1%
So, with you and the employer both paying tax, what used to be a 20.5% tax rate now rises to 35.1%, meaning your real tax rate is actually 14.6% higher than what it seemed at first.
Summary
If you make RM 184 a year living in Malaysia, you will be taxed RM 37.80. That means that your net pay will be RM 146 per year, or RM 12.18 per month. Your average tax rate is 20.5% and your marginal tax rate is 15.4%. 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 15.36, hence, your net pay will only increase by RM 84.64.
Bonus Example
A RM 1,000 bonus will generate an extra RM 846 of net incomes. A RM 5,000 bonus will generate an extra RM 4,232 of net incomes.
North America
Country 
Net pay
Average tax
Rank
Canada
MYR 181
1.6%
1
USA
MYR 168
8.7%
2
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.