Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 25,500
Employees' Provident Fund (EPF)
- RM 2,826
Social Security Organization (SOCSO) contribution
- RM 126
Employment Insurance System (EIS) contribution
- RM 50.40
Total tax
- RM 3,002
Net pay
* RM 22,498
Marginal tax rate
11.6%
Average tax rate
11.8%
88.2%
Net pay
11.8%
Total tax
Total tax
Net pay
Summary
If you make RM 25,500 a year living in Malaysia, you will be taxed RM 3,002. That means that your net pay will be RM 22,498 per year, or RM 1,875 per month. Your average tax rate is 11.8% and your marginal tax rate is 11.6%. 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 11.64, hence, your net pay will only increase by RM 88.36.
Bonus Example
A RM 1,000 bonus will generate an extra RM 884 of net incomes. A RM 5,000 bonus will generate an extra RM 4,418 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.