Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 987,223
Employees' Provident Fund (EPF)
- RM 108,602
Social Security Organization (SOCSO) contribution
- RM 237
Employment Insurance System (EIS) contribution
- RM 94.80
Tax
- RM 231,341
Total tax
- RM 340,275
Net pay
* RM 646,948
Marginal tax rate
38.6%
Average tax rate
34.5%
65.5%
Net pay
34.5%
Total tax
Total tax
Net pay
The Taxberg
RM 646,948
Net pay
RM 129,266
Tax the employer pays
RM 340,275
Tax you pay
Total tax paid
RM 469,540
Did you know your employer also pays tax on your salary? It costs the employer RM 129,266 to pay you RM 987,223. In other words, every time you spend RM 10 of your hard-earned money, RM 4.76 goes to the government.
Real tax rate
42.1%
So, with you and the employer both paying tax, what used to be a 34.5% tax rate now rises to 42.1%, meaning your real tax rate is actually 7.6% higher than what it seemed at first.
Summary
If you make RM 987,223 a year living in Malaysia, you will be taxed RM 340,275. That means that your net pay will be RM 646,948 per year, or RM 53,912 per month. Your average tax rate is 34.5% and your marginal tax rate is 38.6%. 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 38.59, hence, your net pay will only increase by RM 61.41.
Bonus Example
A RM 1,000 bonus will generate an extra RM 614 of net incomes. A RM 5,000 bonus will generate an extra RM 3,071 of net incomes.
North America
Country 
Net pay
Average tax
Rank
USA
MYR 653311
33.8%
1
Canada
MYR 562384
43.0%
2
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.