Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 638,820
Employees' Provident Fund (EPF)
- RM 70,270
Social Security Organization (SOCSO) contribution
- RM 237
Employment Insurance System (EIS) contribution
- RM 94.80
Tax
- RM 140,164
Total tax
- RM 210,766
Net pay
* RM 428,054
Marginal tax rate
37.0%
Average tax rate
33.0%
67.0%
Net pay
33.0%
Total tax
Total tax
Net pay
The Taxberg
RM 428,054
Net pay
RM 83,970
Tax the employer pays
RM 210,766
Tax you pay
Total tax paid
RM 294,736
Did you know your employer also pays tax on your salary? It costs the employer RM 83,970 to pay you RM 638,820. In other words, every time you spend RM 10 of your hard-earned money, RM 4.61 goes to the government.
Real tax rate
40.8%
So, with you and the employer both paying tax, what used to be a 33% tax rate now rises to 40.8%, meaning your real tax rate is actually 7.8% higher than what it seemed at first.
Summary
If you make RM 638,820 a year living in Malaysia, you will be taxed RM 210,766. That means that your net pay will be RM 428,054 per year, or RM 35,671 per month. Your average tax rate is 33.0% and your marginal tax rate is 37.0%. 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 37, hence, your net pay will only increase by RM 63.
Bonus Example
A RM 1,000 bonus will generate an extra RM 630 of net incomes. A RM 5,000 bonus will generate an extra RM 3,150 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.