Sources and method

PCB and income tax

• LHDN (Inland Revenue Board of Malaysia): Specification for Monthly Tax Deduction (MTD) Calculations Using Computerised Calculation for 2026 (checked 26 October 2026)
• LHDN: MTD schedule and data specifications (Jadual PCB dan Spesifikasi Data) (checked 26 October 2026)

EPF

• KWSP (EPF): Employer mandatory contribution: contribution rates (checked 26 October 2026)
• KWSP (EPF): Third Schedule, EPF Act 1991: contribution rates from 1 October 2025 (checked 26 October 2026)

SOCSO, EIS and LINDUNG 24 Jam

• PERKESO (SOCSO): Contribution rate: Act 4 and Act 800, wage ceiling RM6,000 (checked 26 October 2026)
• PERKESO (SOCSO): Employees’ Social Security Act 1969 (Act 4): new contribution rate including SKBBK (checked 26 October 2026)
• PERKESO (SOCSO): Rate of contribution, Employment Insurance System (Act 800) (checked 26 October 2026)
• Jabatan Akauntan Negara Malaysia: PERKESO: Akta Keselamatan Sosial Pekerja (Pindaan) 2026, SKBBK “LINDUNG 24 Jam” (checked 26 October 2026)
• RTM Berita: PERKESO sedia opsyen ‘opt-out’ LINDUNG 24 Jam (checked 26 October 2026)

How the sums are done

1. EPF comes from the Third Schedule: up to RM20,000 a month, wages are taken at the top of their band (RM20 up to RM5,000, RM100 above) and each share rounded up to the ringgit; above that, the exact percentage. This rule reproduces all 1,203 rows of Parts A, C and E.
2. SOCSO is read from PERKESO’s Act 4 table, including the LINDUNG 24 Jam (SKBBK) column, row by row, up to the RM6,000 ceiling. EIS is 0.2% of the middle of the wage’s RM100 band, as PERKESO’s Act 800 table prints it.
3. PCB follows LHDN’s computerised calculation method for normal and additional remuneration: P, K2, the RM4,000 EPF relief cap, Table 1, two-decimal truncation, rounding up to 5 sen and the RM10 minimum. The automated tests reproduce LHDN’s own worked example to the sen: RM110.00, RM110.00, RM108.20 and RM833.70.
4. The calculator shows January’s PCB for a full year at your salary, with optional reliefs spread evenly over the year. The PCB calculator shows every month.

The calculators, salary pages and guides all use the same code. It covers resident Malaysian citizens and permanent residents on a monthly salary. It doesn’t cover non-residents (PCB at a flat 30%), foreign workers, benefits in kind, or tax-exempt allowances, which you should leave out of the salary you enter.

Corrections

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