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Last updated: July 26, 2026
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.
Calculate Employment Costs
Employment Cost Breakdown
Select a country and enter a salary to see the employment cost breakdown
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 RM6,000) |
| 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 |
| 50,001 - 70,000 | 11 |
| 70,001 - 100,000 | 19 |
| 100,001 - 400,000 | 25 |
| 400,001 - 600,000 | 26 |
| 600,001 - 2,000,000 | 28 |
| Above 2,000,000 | 30 |
Employee Contributions
| Deduction Type | Rate (Employee) | Cap (Monthly Wages) |
|---|---|---|
| EPF (Aged below 60) | 11% | None |
| SOCSO (Injury and Invalidity) | ~0.5% | RM6,000 |
| EIS (Employment Insurance System) | 0.2% | 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
Written by
Lucas Botzen
Lucas Botzen is the Founder of Rivermate, a global employment platform that helps companies hire, employ, and manage talent internationally. Since founding Rivermate in December 2020, he has focused on building practical solutions that simplify international payroll, benefits, taxes, contracts, and employment compliance for remote teams. Before Rivermate, Lucas co-founded and co-directed Boloo, an e-learning and software company that helped entrepreneurs start and grow e-commerce businesses. He scaled Boloo to more than €2 million in annual revenue before successfully exiting the business in 2020. Lucas holds a Bachelor’s degree in Business Innovation from Avans University of Applied Sciences. His background in entrepreneurship, technology, automation, and remote work continues to shape his approach to making global employment simpler and more human.
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