Salary rate
Annual
Month
Semimonthly
Weekly
Day
Hour
Withholding
Salary
RM 38,938
Employees' Provident Fund (EPF)
- RM 4,301
Social Security Organization (SOCSO) contribution
- RM 195
Employment Insurance System (EIS) contribution
- RM 77.85
Total tax
- RM 4,574
Net pay
* RM 34,364
Marginal tax rate
11.6%
Average tax rate
11.7%
88.3%
Net pay
11.7%
Total tax
Total tax
Net pay
The Taxberg
RM 34,364
Net pay
RM 5,843
Tax the employer pays
RM 4,574
Tax you pay
Total tax paid
RM 10,417
Did you know your employer also pays tax on your salary? It costs the employer RM 5,843 to pay you RM 38,938. In other words, every time you spend RM 10 of your hard-earned money, RM 2.68 goes to the government.
Real tax rate
23.3%
So, with you and the employer both paying tax, what used to be a 11.7% tax rate now rises to 23.3%, meaning your real tax rate is actually 11.6% higher than what it seemed at first.
Summary
If you make RM 38,938 a year living in Malaysia, you will be taxed RM 4,574. That means that your net pay will be RM 34,364 per year, or RM 2,864 per month. Your average tax rate is 11.8% and your marginal tax rate is 11.6%. 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 11.64, hence, your net pay will only increase by RM 88.36.
Bonus Example
A RM 1,000 bonus will generate an extra RM 884 of net incomes. A RM 5,000 bonus will generate an extra RM 4,418 of net incomes.
Compare average tax
North America
Country 
Net pay
Average tax
Rank
USA
MYR 35378
9.1%
1
Canada
MYR 29985
23.0%
2
Africa
Country 
Net pay
Average tax
Rank
South Africa
MYR 35574
8.6%
1
Morocco
MYR 31834
18.2%
2
Mozambique
MYR 30477
21.7%
3
Ivory Coast
MYR 29959
23.1%
4
Cameroon
MYR 29802
23.5%
5
Kenya
MYR 29537
24.1%
6
Angola
MYR 29040
25.4%
7
Ghana
MYR 28761
26.1%
8
Nigeria
MYR 27036
30.6%
9
Uganda
MYR 26611
31.7%
10
Senegal
MYR 26477
32.0%
11
Zambia
MYR 25683
34.0%
12
Show more
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.