Understanding Your Malaysian Payslip
A clear breakdown of every line on your payslip — EPF, SOCSO, EIS, PCB — and what each deduction actually means.
Your Gross Salary
Your gross salary is your total earnings before any deductions. This includes your basic salary plus any fixed allowances such as transport, housing, or meal allowances. Some allowances may be non-taxable, which reduces your PCB deduction.
EPF (KWSP) Deduction
EPF is your retirement savings contribution at 11% of your gross salary. This money is not lost — it goes into your EPF account and earns annual dividends. Think of it as paying your future self.
SOCSO (PERKESO)
SOCSO stands for Social Security Organisation (Pertubuhan Keselamatan Sosial). You contribute 0.5% of your salary, capped at a monthly wage ceiling of RM6,000 (raised from RM5,000 in October 2024). SOCSO provides protection for work injuries, invalidity, and death benefits. It is not a waste — it's insurance that protects you if you become disabled due to a workplace accident.
EIS (SIP)
EIS stands for Employment Insurance System (Sistem Insurans Pekerjaan). You contribute 0.2% of your salary. EIS provides financial assistance and job placement support if you lose your job involuntarily. If you are retrenched, you can claim EIS benefits for up to 6 months while you search for a new job.
PCB (Potongan Cukai Berjadual)
PCB is your monthly income tax deduction. The amount is calculated based on your annual income, marital status, and number of dependents. It is deducted each month so you don't owe a large lump sum at year-end. If your PCB deducted throughout the year exceeds your actual tax liability, LHDN (IRB) will refund you the difference.
Net Salary (Take-Home Pay)
Your net salary is what lands in your bank account after all deductions. Use our Take-Home Pay Calculator to estimate your exact net salary based on your gross pay.
A sample payslip, line by line
Here is what a typical payslip looks like for a single employee earning RM5,000 a month with no allowances. Earnings: basic salary RM5,000.00. Deductions: EPF (11%) RM550.00, SOCSO RM25.00, EIS RM10.00, PCB (monthly tax) RM110.00 — total deductions RM695.00. Net pay: RM4,305.00. Employer contributions (not deducted from you, often shown in a separate box): EPF RM650.00, SOCSO RM87.50, EIS RM10.00. Those employer figures matter when you compare job offers, because they are part of what the job is really worth.
Allowances, claims and what is taxable
Payslips often list extra lines such as transport, phone, meal or shift allowances. Most fixed allowances count as remuneration, which means EPF is usually charged on them and they are added to your income for tax. Reimbursed claims are different: if you spend your own money on a work expense and the company pays you back against a receipt, that is a reimbursement rather than income. Some benefits are tax-exempt up to a limit, such as certain travel, parking and childcare benefits, so it is worth asking HR how each line is treated. If an allowance suddenly appears or disappears, check whether your EPF and PCB moved with it.
Checking your payslip against your contract
Each month, take two minutes to compare the payslip with your offer letter. The basic salary should match exactly. Overtime should be calculated from your hourly rate, not a flat amount, if you are covered by the Employment Act. Unpaid leave should only be deducted if you actually took it. Your EPF deduction should be 11% of the wages it applies to — divide the EPF line by 0.11 to see what wage figure HR used. Then log in to the KWSP i-Akaun app and confirm that both your share and your employer's share actually arrived; late or missing contributions are an offence and should be raised with HR, then with KWSP if not fixed.
Form EA and your annual tax return
By the end of February each year your employer must give you Form EA, a summary of everything you were paid and everything deducted in the previous calendar year. Keep your monthly payslips and the EA form together: when you file your e-BE on MyTax (normally by 30 April, with e-filing allowed until 15 May), the PCB already deducted is credited against your final tax. If PCB was too high — common if you have reliefs like lifestyle, medical or PRS that your employer did not know about — the difference comes back to you as a refund. Our tax refund estimator gives a quick idea.
Earn more. Keep more. Start today.
🎂 Someone's birthday coming up? Eat Cake Today
Surprise family or friends in Malaysia with a cake — even from thousands of miles away. Order online and they get a big surprise on their special day.
🔥 Grab today's Shopee vouchers & free shipping
Flash deals, cashback & free-shipping vouchers drop every day. Claim yours before checkout and pay way less on the stuff you'd buy anyway.
👟 Free delivery sitewide at JD Sports
Nike, adidas & more — free delivery sitewide plus 30-day free returns. Grab your sneakers & sportswear with zero shipping fees.