Net salary 2026: an estimated RM4,268.20 on a RM5,000 salary after EPF, SOCSO, EIS and PCB

Net salary is the balance of your salary paid into your account after your employer deducts mandatory contributions and tax. For private sector employees, the deductions are usually the Employees Provident Fund (EPF), the Social Security Organisation (SOCSO), the Employment Insurance System (EIS) and the monthly tax deduction (PCB).

Since 1 Jun 2026, employees who contribute to SOCSO also pay LINDUNG 24 Jam contributions, except local employees who have opted out. The figures below were calculated with this site's Net Salary Calculator. The calculator uses the official EPF and SOCSO contribution schedules and the 2026 PCB formula of the Inland Revenue Board (LHDN).

Deductions for salaries of RM3,000, RM5,000 and RM8,000

Assumptions: a citizen under 60, single without children (PCB category 1) and a fixed salary throughout 2026. No bonus, overtime, zakat or Form TP1 reliefs, and you have not opted out of LINDUNG 24 Jam.

Total deductions equal about 12.4%, 14.6% and 18.5% of gross salary. The percentage rises with salary, mainly because of PCB.

The last row is the employer contribution for EPF, SOCSO and EIS. It is paid on top of gross salary and is not deducted from your salary. All figures are estimates, and the official amount is the one calculated by your employer's payroll system.

EPF: employee 11%, calculated by wage band

According to the EPF rate schedule in force for October 2025 wages, citizen employees under 60 contribute 11%. Employers contribute 13% if the salary is RM5,000 or less, or 12% if the salary exceeds RM5,000.

EPF does not allow employers to calculate contributions using the exact percentage, except for salaries above RM20,000. Contributions are taken from the wage bands in the Third Schedule of the EPF Act 1991. In an EPF example, a salary of RM3,250 gives an employee contribution of RM359, not RM358.

Above RM5,000, the band width changes from RM20 to RM100. For example, a salary of RM5,000.01 falls in the RM5,000.01 to RM5,100 band. The employee contribution becomes RM561 (RM550 at a salary of RM5,000), while the employer contribution drops from RM650 to RM612 because of the 12% rate.

Bonuses, allowances and commissions are also subject to EPF contributions. Overtime pay, however, is not. For citizens aged 60 and above, the mandatory rate is 0% for employees and 4% for employers.

Employers must pay contributions for a month's wages on or before the 15th of the following month. That is why EPF refers to October wages as the November contribution.

SOCSO, LINDUNG 24 Jam and EIS: RM6,000 wage ceiling

SOCSO and EIS contributions are taken from the official schedules, with a wage ceiling of RM6,000 a month since 1 Oct 2024. That is why the deductions for a salary of RM8,000 are the same as for a salary of RM6,000.

Employees under 60 contribute 0.5% for the Invalidity Scheme, and employers pay 1.75%. For EIS, employees aged 18 to under 60 contribute 0.2%, and employers add 0.2%. For employees aged 60 and above, only the employer pays 1.25% for the Employment Injury Scheme, and EIS does not apply.

LINDUNG 24 Jam is the Non-Occupational Accident Scheme, which covers accidents not related to work. Its rate is 0.75% for the first phase (1 Jun 2026 to 31 May 2028), and it is borne fully by the employee. This scheme has no age limit, so employees aged 60 and above also contribute.

A Cabinet decision on 8 Jul 2026 made this scheme voluntary for local employees, but it remains mandatory for foreign workers. The opt-out period ended on 31 Aug 2026. For those who have opted out, the net salary in the examples above is RM2,649.35, RM4,305.35 and RM6,564.15.

PCB: an advance deduction, not your final tax

PCB is calculated with LHDN's 2026 computerised formula for resident employees. The formula estimates annual chargeable income after the RM9,000 individual relief and EPF contributions, with an EPF limit of RM4,000 a year. For a fixed salary, PCB is roughly equal to the estimated annual tax divided by 12.

For a salary of RM3,000, PCB is RM0 because the RM400 tax rebate exceeds the estimated annual tax. A salary of RM5,000 has PCB of RM110.00, and a salary of RM8,000 has RM514.20.

Tax status also changes PCB. For married employees whose spouse does not work, the RM4,000 spouse relief is taken into account. Child relief is taken into account for employees who are married, divorced, widowed or single with adopted children. Make sure your employer has your latest status and children details.

Your actual tax is calculated when you fill in Form BE, and the PCB already deducted by your employer is subtracted from that tax. Reliefs declared to your employer through Form TP1, for example life insurance, can reduce your monthly PCB.

What it means for you

• Compare your payslip with the table above. Differences usually come from bonuses, overtime, allowances, zakat or Form TP1.
• For SOCSO and LINDUNG 24 Jam, overtime pay counts as wages, but the annual bonus does not.
• A different salary, status or number of children gives different figures. Try the Net Salary Calculator, then check your annual tax estimate.
• Employees aged 60 and above, permanent residents and foreign workers have different rates. Choose the correct status in the calculator.
• Check your contribution statements on the official EPF and SOCSO portals. Type kwsp.gov.my or perkeso.gov.my into your browser yourself.

Do not give your MyKad number, password, TAC or bank details to anyone offering a “salary check” through WhatsApp or unofficial links.