Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 2,780
Employees' Provident Fund (EPF)
- RM 319
Social Security Organization (SOCSO) contribution
- RM 15
Employment Insurance System (EIS) contribution
- RM 6
Total tax
- RM 340
Net pay
* RM 2,440
Marginal tax rate
10.7%
Average tax rate
12.2%
87.8%
Net pay
12.2%
Total tax
Total tax
Net pay
Summary
If you make RM 2,780 a year living in Malaysia, you will be taxed RM 340. That means that your net pay will be RM 2,440 per year, or RM 203 per month. Your average tax rate is 12.2% and your marginal tax rate is 10.7%. 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 10.65, hence, your net pay will only increase by RM 89.35.
Bonus Example
A RM 1,000 bonus will generate an extra RM 894 of net incomes. A RM 5,000 bonus will generate an extra RM 4,468 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.