1. What is the Seventh Pay Commission?

The Seventh Pay Commission is the salary structure for government employees in Malaysia. It determines the basic pay, allowances, and deductions including EPF, SOCSO, EIS, and income tax.

2. How Does the Calculator Work?

The calculator uses the following formula:

Where:

• Basic Pay — The fixed component of salary
• Allowances — Additional payments (housing, transport, etc.)
• EPF — Employees Provident Fund contribution (typically 13%)
• SOCSO — Social Security Organization contribution
• EIS — Employment Insurance System contribution (0.2%)
• Tax — Income tax based on current rates

3. Understanding Salary Components

Basic Pay: The core salary before any additions or deductions. Determined by pay grade and years of service.

Allowances: May include housing allowance, transport allowance, cost of living allowance, and other special allowances.

Deductions: Mandatory contributions to social security and retirement funds, plus income tax.

4. Using the Calculator

Tips: Enter basic pay and allowances in MYR. For deductions, enter the percentage rates (e.g., 13 for EPF). The calculator will compute the amounts and net salary.

5. Frequently Asked Questions (FAQ)

Q1: What is the current EPF contribution rate?
A: For government employees, the standard EPF contribution rate is 13% of salary.

Q2: How is SOCSO calculated?
A: SOCSO rates vary based on salary brackets. Check the latest SOCSO contribution table for exact rates.

Q3: Is EIS applicable to all employees?
A: Yes, all employees (except those above 60) contribute 0.2% of their salary to EIS.

Q4: How accurate is the tax calculation?
A: This provides an estimate. Actual tax may vary based on tax reliefs and rebates.

Q5: Are there any other common deductions?
A: Some employees may have additional deductions like loans, union fees, or insurance premiums.