A RM5,000 monthly salary in Malaysia puts about RM4,270 in the bank. The rest goes to EPF, SOCSO, EIS, Lindung 24 Jam and monthly income tax (PCB), all deducted by the employer before payday.

The table above shows the estimated monthly take-home pay after all employee deductions, for monthly salaries from RM1,700 (the minimum wage) to RM20,000.

Figures assume a Malaysian employee under 60, single, with standard tax reliefs only, and enrolled in Lindung 24 Jam. Actual PCB depends on each person’s reliefs.

The 5 Payroll Deductions Every Malaysian Employee Should Know

1. EPF (KWSP): 11%

The Employees Provident Fund is your retirement savings. Most Malaysian employees under 60 contribute 11% of their monthly wages, and there is no salary cap, so EPF is the biggest deduction at every salary level. The money isn’t lost: it goes into your own EPF account and earns annual dividends.

2. SOCSO (PERKESO): 0.5%

SOCSO protects employees against work-related injuries, occupational diseases and invalidity. The employee share is about 0.5% of wages, based on salary bands up to a wage ceiling of RM6,000. That’s why SOCSO stays at RM29.75 for anyone earning RM6,000 or more.

3. EIS (SIP): 0.2%

The Employment Insurance System supports employees who lose their jobs, with temporary income, job search help and training. Employees pay about 0.2% of wages, also capped at RM6,000, so the most you’ll pay is RM11.90 a month.

4. Lindung 24 Jam: 0.75%

Lindung 24 Jam (officially the Non-Work Accident Scheme, or SKBBK) is PERKESO’s newest scheme, launched on 1 June 2026. It covers accidents outside work, such as road accidents on personal trips, injuries at home or during sports. The contribution starts at 0.75% of wages, capped at RM44.65 a month, and is paid fully by the employee.

On 8 July 2026, the Cabinet made the scheme voluntary for Malaysian employees. Those who didn’t submit an opt-out by 31 August 2026 remain enrolled, so many payslips still show this deduction. It remains mandatory for foreign workers.

5. PCB (MTD): Monthly Income Tax

Potongan Cukai Bulanan is your income tax, deducted in advance each month and paid to LHDN. It isn’t a flat rate. It depends on your annual chargeable income after reliefs, such as the RM9,000 individual relief, EPF relief and SOCSO/EIS relief. Lower earners often pay no PCB at all, while it becomes the second-largest deduction at higher salaries. Married employees, parents and those claiming other reliefs usually pay less than the table shows.