Tax & Salary Calculator Malaysia 2026

Malaysia uses a progressive tax system with rates from 0% to 30%. The first RM 5,000 of chargeable income is tax-free, with rates increasing in bands: 1% (RM 5,001-20,000), 3% (RM 20,001-35,000), 6% (RM 35,001-50,000), 11% (RM 50,001-70,000), 19% (RM 70,001-100,000), 25% (RM 100,001-400,000), 26% (RM 400,001-600,000), 28% (RM 600,001-2M), and 30% (above RM 2M). Tax residents also benefit from various reliefs and deductions.

PCB (Potongan Cukai Berjadual / Monthly Tax Deduction) is the monthly income tax deducted from your salary by your employer. It's calculated based on your gross salary, EPF contribution, number of dependents, and tax relief claimed. PCB serves as advance tax payment — at year-end, any overpaid PCB is refunded when you file your tax return.

As of 2024, employees contribute 11% of their monthly salary to EPF (9% for those earning above RM 5,000 who opt for the lower rate). Employers contribute 13% for salaries up to RM 5,000 and 12% for salaries above RM 5,000. EPF contributions are divided between Account 1 (70%, for retirement) and Account 2 (30%, for housing and education).

SOCSO (Social Security Organisation) provides employment injury and invalidity benefits. Employees contribute 0.5% of salary (capped at RM 86.65/month). EIS (Employment Insurance System) provides job loss benefits — both employer and employee contribute 0.2% each (capped at RM 9.90/month). These are mandatory deductions for most private sector employees.

SSPA (Sistem Saraan Perkhidmatan Awam) is the new public service salary system replacing SSM. It was implemented in phases — Phase 1 in December 2024 with a 15% minimum salary increase, and Phase 2 scheduled for January 2026. SSPA includes revised grade structures, new KGT (Kenaikan Gaji Tahunan) rates, and updated allowances for all civil servants.