Employment Cost Calculator for Malaysia
Calculate your complete hiring costs for Malaysia employees, including payroll taxes, social security contributions, employee benefits, and management fees. This salary calculator provides accurate employer cost estimates for informed hiring decisions.
Employer Tax Contributions
| Tax Type | Rate (Employer) | Base |
|---|---|---|
| EPF (Employees Provident Fund) | 13% (for wages ≤ RM5,000); 12% (for wages > RM5,000) | Employee's monthly salary |
| SOCSO (Social Security Organization) | 1.75% (employees < 60); 1.25% (employees ≥ 60) | Employee's monthly wage (capped at RM6,000) |
| EIS (Employment Insurance System) | 0.2% | Employee's monthly salary (capped at RM4,000) |
| HRDF (Human Resources Development Fund) | 1% (≥10 Malaysian employees); 0.5% (5-9 Malaysian employees, optional) | Monthly wages (basic salary + fixed allowances) of Malaysian employees |
Filing & Compliance
- Monthly Contributions (EPF, SOCSO, EIS, PCB/MTD, HRDF): Due by the 15th of the following month.
- Form EA (Employee Remuneration Statement): Issue to employees by February 28.
- Form E (Employer Tax Submission): Due by March 31 (manual) or April 30 (e-filing).
Income Tax Brackets
| Income Range (RM) | Tax Rate (%) |
|---|---|
| 0 - 5,000 | 0 |
| 5,001 - 20,000 | 1 |
| 20,001 - 35,000 | 3 |
| 35,001 - 50,000 | 6 |
Employee Contributions
| Deduction Type | Rate (Employee) | Cap (Monthly Wages) |
|---|---|---|
| EPF (Aged below 60) | 11% | RM20,000 |
| SOCSO (EIS Act 2017) | 0.2% | RM6,000 |
| EIS (Employment Injury) | ~0.5% | RM6,000 |
Personal Allowances
- Individual and dependent relatives: RM9,000
- Medical expenses for serious diseases for self, spouse, or child: up to RM10,000
- Life insurance premiums and approved provident fund contributions: up to RM7,000
