Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 8
Social Security Organization (SOCSO) contribution
- RM 1.20
Employment Insurance System (EIS) contribution
- RM 0.60
Total tax
- RM 1.80
Net pay
* RM 6.20
Marginal tax rate
17.3%
Average tax rate
22.5%
77.5%
Net pay
22.5%
Total tax
Total tax
Net pay
Summary
If you make RM 8 a year living in Malaysia, you will be taxed RM 1.80. That means that your net pay will be RM 6.20 per year, or RM 0.52 per month. Your average tax rate is 22.5% and your marginal tax rate is 17.3%. 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 17.28, hence, your net pay will only increase by RM 82.72.
Bonus Example
A RM 1,000 bonus will generate an extra RM 827 of net incomes. A RM 5,000 bonus will generate an extra RM 4,136 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.