Introduction
If you're working in Malaysia or planning to start a new job, one of the most common questions is:
"How much is my actual take-home salary after deductions?"
Your gross salary (the amount stated in your offer letter) is not the same as your net salary. This is because of deductions such as EPF (KWSP), SOCSO, EIS, and PCB (income tax). To make it simple, we've created a Salary Calculator Malaysia that helps you estimate your monthly take-home pay instantly.
Why Salary Calculation Matters
Understanding your net salary is important for:
- Job offers → Compare take-home pay between employers
- Budgeting → Plan expenses, savings, and investments
- Loan applications → Banks use net income to assess eligibility
- Tax planning → Estimate monthly PCB deductions accurately
Salary Components in Malaysia
1. Gross Salary
The amount before deductions. Example: RM5,000
2. Mandatory Deductions
- EPF (KWSP): 11% employee contribution, employer adds 13% (not in take-home)
- SOCSO (PERKESO): Covers employment injury & invalidity, contribution depends on salary range
- EIS (Employment Insurance System): 0.2% employee contribution
- PCB (Potongan Cukai Bulanan): Monthly income tax deduction based on chargeable income
3. Allowances / Benefits
Transport allowance, phone allowance, medical benefits, etc. (some taxable, some not)
EPF Contribution Calculator Malaysia: Know Your Retirement Savings
Introduction
The Employees Provident Fund (EPF / KWSP) is one of the most important retirement savings schemes in Malaysia. Both employees and employers contribute monthly, ensuring that workers build financial security for the future. But how much exactly is deducted from your salary, and how much does your employer add?
To make things easier, we've built a Malaysia EPF Contribution Calculator that lets you instantly check how much you and your employer contribute every month.
What is EPF (KWSP)?
EPF (Kumpulan Wang Simpanan Pekerja) is a mandatory savings plan for private sector employees in Malaysia. Contributions are invested and grow until retirement, when members can withdraw their savings.
- Employee contribution: Usually 11% of monthly wages (can be adjusted to 9% temporarily under government initiatives).
- Employer contribution: Between 12% – 13%, depending on the employee's salary level.
Current EPF Contribution Rates (2025)
For employees below 60 years old:
- Employer contribution:
- 13% if monthly wages ≤ RM5,000
- 12% if monthly wages > RM5,000
- Employee contribution: 11% (default rate)
For employees 60 years and above:
- Employer contribution: 4%
- Employee contribution: 0% (optional if employee chooses to contribute)
Example of EPF Calculation
If your monthly salary is RM4,000:
- Employee contribution (11%) = RM440
- Employer contribution (13%) = RM520
- Total monthly EPF savings = RM960
In just one year, your EPF savings grow by RM11,520 — excluding dividends declared by EPF.
Why EPF Matters
- Retirement security: Ensures savings after age 55.
- Compounded growth: Annual dividends declared by EPF boost long-term returns.
- Loan eligibility: EPF contributions can be considered for certain housing or education withdrawals.
- Discipline: Automatic salary deductions ensure consistent savings.
Why Use an EPF Contribution Calculator?
Many employees only see "EPF deduction" on their payslip but don't realize how much employers add. Our EPF Contribution Calculator Malaysia helps you:
- See both employee + employer contributions instantly
- Estimate monthly and yearly savings
- Plan long-term retirement goals better
- Compare how salary increments impact EPF savings
Additional Tips for Malaysians
- Track your account: Use the KWSP i-Akaun app for real-time balance.
- Don't withdraw early: Unless necessary, keep funds growing with dividends.
- Voluntary contributions: Self-employed individuals can also contribute to EPF.
- Top up regularly: Small additional contributions can significantly boost retirement savings.
Example of Salary Calculation
For an employee with a gross salary of RM5,000/month:
- EPF (11%): RM550
- SOCSO: ~RM19.75
- EIS: RM9.90
- PCB (est.): ~RM100 – RM150 (depends on reliefs)
Net Salary ≈ RM4,300 – RM4,320
This is just an estimate — the exact figure depends on PCB reliefs, allowances, and other factors.
Why Use a Salary Calculator?
Manual calculation can be confusing. Our Salary Calculator Malaysia helps you:
- Calculate net salary after EPF, SOCSO, EIS, and PCB
- Compare gross vs. net pay instantly
- Understand employer vs. employee contributions
- Plan your financial commitments with confidence
👉 Use Our Salary Calculator Malaysia above - Simply enter your gross salary and details, and get an instant breakdown of deductions and take-home pay.
Additional Tips for Employees in Malaysia
- Negotiate wisely: Always consider net pay when accepting a new offer.
- Track PCB: If PCB is higher than your actual annual tax, you'll get a refund after e-Filing.
- EPF savings: Employer's contribution (13%) is not included in net pay, but it goes into your retirement fund.
- Use salary slips: Keep records to make loan or visa applications smoother.
Conclusion
EPF is the foundation of retirement planning in Malaysia, ensuring both employees and employers contribute consistently. Knowing how much goes into your EPF every month helps you plan better for the future.
Use our EPF Contribution Calculator Malaysia today to see how much you're saving — and how fast your retirement fund is growing.
Your salary is more than just the gross figure in your contract. By understanding deductions like EPF, SOCSO, EIS, and PCB, you can better manage your finances.
Use our Salary Calculator Malaysia today to estimate your take-home pay and plan your financial future with confidence.