Guide to Salary Deductions in Malaysia

In Malaysia, employees typically see several deductions on their payslip. The main ones are EPF (Employees Provident Fund), SOCSO (Social Security Organisation), EIS (Employment Insurance System), and income tax (PCB).

EPF

The default employee contribution rate is 11% of your monthly salary. Your employer contributes 13% if your salary is RM5,000 or below, and 12% if above RM5,000.

SOCSO

SOCSO provides social security protection. The employee contribution is estimated at 0.5% of salary (capped at RM6,000). The employer contributes approximately 1.75%.

EIS

EIS provides temporary financial assistance if you lose your job. The employee contribution is estimated at 0.2% of salary (capped at RM6,000), with the employer matching 0.2%.

Income Tax

Monthly Tax Deduction (PCB) is an estimate of your annual income tax. The actual tax is calculated progressively when you file your tax return.