Understanding Your Malaysian Pay Slip: EPF, SOCSO, EIS & Tax Explained

Quick Answer: A Malaysian pay slip shows your gross pay, then four statutory deductions: EPF at 11%, SOCSO at about 0.5% of wages up to RM6,000, EIS at 0.2%, and PCB monthly tax. On a RM3,000 salary in 2026 you take home RM2,649.35, and your employer pays a further RM447.55 in contributions on your behalf.

Key fact	Rule in 2026
EPF, your share	11% of wages (under 60)
EPF, employer share	13% on wages up to RM5,000, 12% above
SOCSO, your share	About 0.5% of wages, capped at RM6,000 of wages; about 1.25% if you opt in to LINDUNG 24 Jam
EIS, your share	0.2% of wages, capped at RM6,000
PCB (monthly tax)	Set by LHDN's formula; often RM0 below about RM3,500 for a single person
When salary must be paid	By the 7th day after the wage period ends (Employment Act, section 19)
Take-home on RM3,000	RM2,649.35

Contribution figures checked against the KWSP Third Schedule, PERKESO contribution tables and LHDN's MTD formula on 1 October 2026; the same rules power the SuperJobs salary calculator.

---

How do I read my payslip?

Read it from top to bottom in four blocks.

1. Earnings. Your basic salary, plus any fixed allowances, overtime, commission or bonus paid that month. Together they make your gross pay.
2. Your deductions. EPF, SOCSO, EIS and PCB, plus anything else you have agreed to in writing, such as a loan repayment or a union fee.
3. Employer contributions. Many pay slips also show what your employer paid into EPF, SOCSO and EIS for you. These are not taken from your salary.
4. Net pay. Gross pay minus your deductions. This is what reaches your bank account.

Most pay slips also show the pay period, your EPF and SOCSO numbers, and year-to-date totals, which help when you file your tax return.

What is the format of a payslip in Malaysia?

There is no single official layout, but a typical Malaysian pay slip contains:

Section	What it usually shows
Header	Employer name, your name, staff number, IC number, pay period
Earnings	Basic pay, allowances, overtime, commission
Deductions	EPF, SOCSO, EIS, PCB, other agreed deductions
Employer contributions	Employer EPF, SOCSO and EIS
Totals	Gross pay, total deductions, net pay
Year to date	Cumulative earnings, EPF and PCB for the year

If something is missing, ask HR. You need the EPF and PCB figures to check your contributions online and to file your tax return.

How much EPF is deducted from your salary?

For an employee under 60, 11% of wages. Your employer adds 13% if your wages are RM5,000 or less, and 12% above that.

The exact amount comes from the Third Schedule of the EPF Act 1991, which works in wage bands: RM20 bands up to RM5,000, then RM100 bands up to RM20,000, with each contribution rounded up to the next ringgit. That is why an RM3,250 salary gives an EPF deduction of RM359 rather than RM357.50.

Where the money goes changed on 11 May 2024. For members under 55, each contribution is now split three ways:

EPF account	Share of each contribution	What it is for
Akaun Persaraan	75%	Retirement income
Akaun Sejahtera	15%	Housing, education, health and other approved needs
Akaun Fleksibel	10%	Withdrawals at any time

You can check every contribution in KWSP's i-Akaun. If a month is missing, raise it with HR first, then with KWSP. Our guide to EPF and PRS retirement planning explains how to grow the balance.

How much SOCSO and EIS is deducted?

SOCSO (PERKESO) protects you against injury and disability. For employees under 60, your share covers the invalidity scheme and comes to about 0.5% of wages. PERKESO's LINDUNG 24 Jam scheme, which covers accidents outside work, is voluntary for Malaysian employees and adds about 0.75% of wages if you opt in. Your employer pays about 1.75%. Contributions stop rising at RM6,000 of monthly wages.

EIS (Employment Insurance System, or SIP) supports you if you lose your job. You and your employer each pay 0.2% of wages, also capped at RM6,000.

Monthly wages	Your SOCSO	Your EIS	Employer SOCSO	Employer EIS
RM2,000	RM9.75	RM3.90	RM34.15	RM3.90
RM3,000	RM14.75	RM5.90	RM51.65	RM5.90
RM5,000	RM24.75	RM9.90	RM86.65	RM9.90
RM6,000 and above	RM29.75	RM11.90	RM104.15	RM11.90

From PERKESO's contribution tables, which work in wage bands, without the voluntary LINDUNG 24 Jam scheme; checked 1 October 2026.

KWSP and PERKESO are separate bodies. EPF is your savings, which you get back; SOCSO and EIS are insurance, which pay out only if you are injured, disabled or lose your job.

What is PCB on my pay slip?

PCB (potongan cukai bulanan), also called MTD, is income tax deducted monthly by your employer and sent to LHDN. It is calculated with LHDN's formula from your salary, EPF, marital status and children.

At lower salaries PCB is often zero, because the RM9,000 individual relief, EPF relief and the RM400 rebate for chargeable income up to RM35,000 cancel out the tax. For a single employee under 60 with no children:

Monthly salary	PCB
RM3,000	RM0.00
RM3,500	RM0.00
RM5,000	RM109.65
RM7,695	RM454.85

PCB is an estimate. You still file a return each year, and if PCB did not cover your full tax, you pay the balance. Our guide to filing income tax for the first time walks through e-Filing.

Worked example: a full pay slip

Hui Min is a composite case, not a real person. She is an accounts executive at a manufacturing company in Ipoh, earning a basic salary of RM3,500 a month. She is single, under 60, with no children.

Line	Amount
Basic salary	RM3,500.00
Gross pay	RM3,500.00
EPF (11%)	minus RM385.00
SOCSO	minus RM17.25
EIS	minus RM6.90
PCB	RM0.00
Net pay	RM3,090.85
Employer EPF (13%)	RM455.00
Employer SOCSO	RM60.35
Employer EIS	RM6.90
Total cost to her employer	RM4,022.25

Her employer spends RM4,022.25 a month to employ her, and RM840 of the combined EPF goes into her own account. If she checks her i-Akaun and sees RM840 credited each month, her EPF is correct. Try your own salary in the salary calculator, or compare pay for accounting roles in our accounting and finance salary guide.

Is salary calculated on 26 days or 30 days in Malaysia?

Both, for different purposes.

• For overtime, public holiday and leave pay, the Employment Act's ordinary rate of pay for a monthly-paid employee is the monthly wage divided by 26 (section 60I(1A)).
• For a month you did not work in full, such as your first or last month, or unpaid leave, section 18A pro-rates your monthly wage by the calendar days in that month: monthly wage × days eligible ÷ days in the wage period.

For example, if you join on 16 September on RM3,000, you are paid for 15 of the month's 30 days: RM3,000 × 15 ÷ 30 = RM1,500.

When must you be paid, and what can be deducted?

Under section 19(1) of the Employment Act, your employer must pay your wages, less lawful deductions, no later than the seventh day after the end of each wage period.

Section 24 limits what can be deducted. Statutory deductions such as EPF, SOCSO, EIS and PCB are allowed because other laws authorise them. An employer can also recover an overpayment made by mistake in the previous three months, or an advance of wages, without charging interest. Most other deductions, such as union fees or company share purchases, need your written request, and some also need the Labour Department's written permission.

What mistakes do employees make with pay slips?

• Not checking EPF against i-Akaun. Missing contributions are easier to fix in the same month.
• Not noticing LINDUNG 24 Jam. It is voluntary for Malaysian employees. If your SOCSO deduction is about 1.25% of wages rather than 0.5%, you are enrolled; ask HR if you did not opt in.
• Treating PCB as the final tax. You still file a return, and a second job or bonus can leave a balance to pay.
• Ignoring year-to-date figures. They are the quickest check for your tax return.
• Accepting unexplained deductions. Anything beyond the statutory ones needs your written agreement.

Where to go next

• Compare pay for your role on Salary Insights or in the accounting and finance salary guide.
• Grow your savings with our guide to EPF and PRS retirement planning.
• File your first return with our first income tax e-Filing guide.
• Work out any salary in the salary calculator.

Sources

All checked 1 October 2026.

• Employees Provident Fund Act 1991, Third Schedule (contribution rates from 1 October 2025); KWSP, EPF account restructuring, 11 May 2024.
• PERKESO contribution tables (Employees' Social Security Act 1969) and PERKESO's LINDUNG 24 Jam page, which states the scheme is voluntary for local employees and Employment Insurance System Act 2017 (Act 800).
• LHDN computerised monthly tax deduction (MTD/PCB) formula, 2026 specification.
• Employment Act 1955 (Act 265): sections 18A, 19, 24 and 60I.