Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 8,750
Employees' Provident Fund (EPF)
- RM 977
Social Security Organization (SOCSO) contribution
- RM 42.19
Employment Insurance System (EIS) contribution
- RM 16.88
Total tax
- RM 1,036
Net pay
* RM 7,714
Marginal tax rate
11.0%
Average tax rate
11.8%
88.2%
Net pay
11.8%
Total tax
Total tax
Net pay
Summary
If you make RM 8,750 a year living in Malaysia, you will be taxed RM 1,036. That means that your net pay will be RM 7,714 per year, or RM 643 per month. Your average tax rate is 11.8% and your marginal tax rate is 11.0%. 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 11.03, hence, your net pay will only increase by RM 88.97.
Bonus Example
A RM 1,000 bonus will generate an extra RM 890 of net incomes. A RM 5,000 bonus will generate an extra RM 4,449 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.