Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 3,125
Employees' Provident Fund (EPF)
- RM 367
Social Security Organization (SOCSO) contribution
- RM 15
Employment Insurance System (EIS) contribution
- RM 6
Total tax
- RM 388
Net pay
* RM 2,737
Marginal tax rate
13.0%
Average tax rate
12.4%
87.6%
Net pay
12.4%
Total tax
Total tax
Net pay
Summary
If you make RM 3,125 a year living in Malaysia, you will be taxed RM 388. That means that your net pay will be RM 2,737 per year, or RM 228 per month. Your average tax rate is 12.4% and your marginal tax rate is 13.0%. 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 12.98, hence, your net pay will only increase by RM 87.02.
Bonus Example
A RM 1,000 bonus will generate an extra RM 870 of net incomes. A RM 5,000 bonus will generate an extra RM 4,351 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.