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Malaysia salary calculator 2026

Free Malaysia salary calculator (AY 2026): net take-home pay for employees. Graduated income tax to 30%, RM 400 rebate below RM 35,000, EPF 11%, SOCSO and EIS contributions. Educational, not tax advice.

Simon Bodych

by Simon Bodych

Methodology & sources

Methodology - Malaysia (2026)

Educational model for assessment year 2026 (AY 2026, income earned in calendar year 2026), currency MYR (annual = month x 12) - not an LHDN assessment, not an EA form, not tax advice. The resident graduated scale and the RM 9,000 / RM 7,000 reliefs are unchanged for AY 2026 per Budget 2026 (tabled 10 October 2025). SOCSO and EIS are officially BANDED contribution tables; this model uses the headline percentages on the capped insured wage as a documented approximation, and the self-employed SOCSO (SKSPS) figure is indicative. Out of scope: non-resident flat 30%, the EPF age 60+ reduced rate, the 2% dividend tax above RM 100,000, Zakat rebate and BIK / perquisites.

Employment

  • Resident graduated income tax on chargeable income (Income Tax Act 1967, Schedule 1 Part I): 0% up to RM 5,000, then 1/3/6/11/19/25/26/28/30% across the bands up to 20k / 35k / 50k / 70k / 100k / 400k / 600k / 2m and above. A RM 400 rebate (rebat) applies when chargeable income does not exceed RM 35,000 (s.6A(2)), reducing tax but never below zero.
  • Reliefs (simplified): individual / basic personal relief RM 9,000 (s.46(1)(a)) + the EPF + life / takaful combined relief capped at RM 7,000 with an EPF sub-limit of RM 4,000 (s.49); the model applies the employee EPF actually paid, capped at RM 4,000. Additional reliefs (spouse, child, medical, lifestyle, SSPN) are an optional user lump-sum.
  • EPF / KWSP: employee 11% (below age 60) on full wages; employer 13% for monthly wages up to RM 5,000 and 12% above (EPF Act 1991, Third Schedule). No statutory upper wage ceiling on the mandatory rate.
  • SOCSO / PERKESO Category 1: employee 0.5%, employer 1.75%. EIS / SIP: employee 0.2%, employer 0.2%. Both on wages capped at the RM 6,000/month insured-wage ceiling (raised from RM 5,000 on 1 October 2024); headline-percentage approximation of the official banded tables.

Sources: LHDN (Lembaga Hasil Dalam Negeri) - Income Tax Act 1967 Schedule 1 Part I (resident rates), s.6A(2) (RM 400 rebate), s.46-49 (reliefs); Budget 2026, KWSP / EPF - EPF Act 1991 Third Schedule (employee 11%, employer 13% up to RM 5,000 / 12% above), PERKESO - SOCSO Act 1969 + EIS Act 2017 (0.5%/1.75% and 0.2%/0.2%, RM 6,000/month insured-wage ceiling from 1 October 2024).

Sole proprietor (perniagaan tunggal)

  • A sole proprietor is taxed on business net income (revenue minus allowable expenses) at the SAME resident graduated scale as an employee, with the same RM 400 rebate below RM 35,000 chargeable income and the same personal reliefs.
  • No mandatory EPF on business income, but EPF Self Contribution (i-Saraan) is voluntary and user-entered; it qualifies for the EPF + life / takaful relief capped at RM 7,000 (EPF sub-limit RM 4,000).
  • Self-employed SOCSO via the Self-Employment Social Security Scheme (SKSPS, Act 789): 1.25% of a chosen insured monthly earning, capped at RM 3,950 (the Plan 4 ceiling, separate from the RM 6,000 employee SOCSO / EIS ceiling). EIS does NOT cover the self-employed.
  • Reliefs simplified to personal RM 9,000 + voluntary EPF (capped RM 4,000) + an optional user lump-sum. Out of scope: capital allowances detail, SST registration, partnership apportionment, the 2% dividend tax, CP500 instalments and the non-resident regime.

Sources: LHDN (Lembaga Hasil Dalam Negeri) - Income Tax Act 1967 Schedule 1 Part I; s.6A(2) rebate; s.46-49 reliefs, KWSP / EPF - EPF Self Contribution (i-Saraan), voluntary; EPF Act 1991, PERKESO - Self-Employment Social Security Scheme (SKSPS, Act 789), 1.25% of the selected insured monthly earning.