pay calculator for commission based pay in malaysia

Commission Calculation:

\[ \text{Commission} = \text{Sales Amount} \times \frac{\text{Commission Rate}}{100} \] \[ \text{Total Pay} = \text{Commission} - (\text{EPF} + \text{SOCSO} + \text{EIS} + \text{Tax}) \]

Sales Amount (MYR):

MYR

Commission Rate:

EPF Contribution:

SOCSO Contribution:

EIS Contribution:

Tax Deduction:

Gross Commission:

EPF Deduction:

SOCSO Deduction:

EIS Deduction:

Tax Deduction:

Total Net Pay:

Unit Converter ▲

Unit Converter ▼

From:	To:

1. What is Commission-Based Pay?

Commission-based pay is a compensation system where employees earn a percentage of the sales they generate. In Malaysia, this is common in sales roles, real estate, and certain service industries. The take-home pay is calculated by subtracting statutory deductions (EPF, SOCSO, EIS) and taxes from the gross commission.

2. How the Calculator Works

The calculator uses these formulas:

\[ \text{Commission} = \text{Sales Amount} \times \frac{\text{Commission Rate}}{100} \] \[ \text{Total Pay} = \text{Commission} - (\text{EPF} + \text{SOCSO} + \text{EIS} + \text{Tax}) \]

Where:

Sales Amount — Total sales value in Malaysian Ringgit (MYR)
Commission Rate — Percentage of sales paid as commission
EPF — Employees Provident Fund contribution (typically 11% for employees)
SOCSO — Social Security Organization contribution (varies by income)
EIS — Employment Insurance System contribution (0.2% of wages)
Tax — Income tax deduction based on current tax rates

3. Understanding Malaysian Deductions

EPF (Employees Provident Fund): Mandatory retirement savings (employee contributes 11%, employer 13%).
SOCSO (Social Security Organization): Provides social security protection (0.5% of wages).
EIS (Employment Insurance System): Provides benefits to workers who lose employment (0.2% of wages).
Tax: Progressive income tax based on annual income brackets.

4. Using the Calculator

Tips: Enter sales amount in MYR, commission rate in percentage, and deduction rates. Default values are provided for standard Malaysian rates, but you can adjust them as needed.

5. Frequently Asked Questions (FAQ)

Q1: Are commission earnings taxable in Malaysia?
A: Yes, commission income is taxable and must be declared as part of your annual income.

Q2: What's the current EPF contribution rate?
A: As of 2024, employees contribute 11% and employers contribute 13% (for wages ≤ RM5,000).

Q3: How is SOCSO calculated?
A: SOCSO contributions vary by wage category, typically around 0.5% of wages.

Q4: Do part-time workers pay EIS?
A: Yes, all employees including part-time workers must contribute to EIS.

Q5: When are these deductions made?
A: Deductions are made monthly by the employer and remitted to the respective agencies.