Manage Payroll Tax in Malaysia

Taxes in Malaysia

Learn how employment taxes and statutory fees affect your payroll and your employees’ paychecks in Malaysia.

Employer taxes

12 - 13 %

Provident Fund (for employees up to the age of 60)

4 - 6.5 %

Provident Fund (for employees over the age of 60)

1.75 %

Social Security (SOCSO)

0.20 %

Employment Insurance (EIS)

1 %

Human Resource Development Fund (for over 10 employees)

Employee taxes

9 %

Provident Fund (employees up to the age of 60)

0.00 - 5.5 %

Provident Fund (employees over the age of 60)

0.5 %

Social Security (SOCSO)

0.20 %

Employment Insurance (EIS)

Personal income tax rates (all in MYR - Malaysian Ringgit)

0 %

Up to 5,000

1 %

5,000 –20,000

3 %

20,000 – 35,000

8 %

35,000 - 50,000

13.00 %

50,000 - 70,000

21.00 %

70,000 - 100,000

24.00 %

100,000 - 250,000

24.50 %

250,000 - 400,000

25.00 %

400,000 - 600,000

26.00 %

600,000 - 1,000,000

28.00 %

1,000,000 - 2,000,000

30.00 %

2,000,000 and over

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Taxes in Malaysia