HR Payroll - Malaysia

A ready Malaysia salary structure on the EH payroll engine:

• EPF (Employees Provident Fund / KWSP) employee and employer contributions. The employer rate is WAGE-BANDED: 13% when monthly wages are RM5,000 or below, 12% when they exceed RM5,000 (employee 11%).
• SOCSO (PERKESO, Category 1) employee and employer contributions as a FIXED-AMOUNT BAND TABLE (Jadual Caruman), capped at the RM6,000 monthly wage ceiling.
• EIS (Employment Insurance System / SIP) employee and employer contributions as a FIXED-AMOUNT BAND TABLE (Jadual Caruman), capped at the RM6,000 monthly wage ceiling.
• PCB / MTD (Potongan Cukai Bulanan, monthly tax deduction) computed by the simplified LHDN resident progressive bracket formula with the standard individual relief and EPF relief.

The SOCSO and EIS band tables and the income-tax brackets are DATA: they are seeded from the current statutory rates and the RM6,000 ceiling (effective 1 October 2024), but you must confirm them against the current PERKESO Jadual Caruman and LHDN schedule, since they are revised. The lookup and tax METHODS are fixed; the seeded figures are yours to keep current.

Sources: Employees Provident Fund Act 1991 (Third Schedule); PERKESO (Pertubuhan Keselamatan Sosial) Jadual Caruman; LHDN (Lembaga Hasil Dalam Negeri) individual income tax rates. All public.