Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 765
Employees' Provident Fund (EPF)
- RM 102
Social Security Organization (SOCSO) contribution
- RM 4.37
Employment Insurance System (EIS) contribution
- RM 2.06
Total tax
- RM 108
Net pay
* RM 657
Marginal tax rate
14.1%
Average tax rate
14.2%
85.8%
Net pay
14.2%
Total tax
Total tax
Net pay
The Taxberg
RM 657
Net pay
RM 134
Tax the employer pays
RM 108
Tax you pay
Total tax paid
RM 243
Did you know your employer also pays tax on your salary? It costs the employer RM 134 to pay you RM 765. In other words, every time you spend RM 10 of your hard-earned money, RM 3.17 goes to the government.
Real tax rate
27.0%
So, with you and the employer both paying tax, what used to be a 14.2% tax rate now rises to 27.0%, meaning your real tax rate is actually 12.8% higher than what it seemed at first.
Summary
If you make RM 765 a year living in Malaysia, you will be taxed RM 108. That means that your net pay will be RM 657 per year, or RM 54.71 per month. Your average tax rate is 14.2% and your marginal tax rate is 14.1%. 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 14.09, hence, your net pay will only increase by RM 85.91.
Bonus Example
A RM 1,000 bonus will generate an extra RM 859 of net incomes. A RM 5,000 bonus will generate an extra RM 4,296 of net incomes.
North America
Country 
Net pay
Average tax
Rank
Canada
MYR 753
1.6%
1
USA
MYR 699
8.7%
2
Middle East
Country 
Net pay
Average tax
Rank
Egypt
MYR 765
0.0%
1
Saudi Arabia
MYR 765
0.0%
2
United Arab Emirates
MYR 727
5.0%
3
Qatar
MYR 727
5.0%
4
Bahrain
MYR 704
8.0%
5
Oman
MYR 704
8.0%
6
Lebanon
MYR 702
8.3%
7
Kuwait
MYR 681
11.0%
8
Israel
MYR 664
13.2%
9
Turkey
MYR 644
15.8%
10
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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.