Malaysia Tax Tables 2024 - Tax Rates and Thresholds in Malaysia

This page contains the tax table information used for the calculation of tax and payroll deductions in Malaysia in 2024. These tax tables are used for the tax and payroll calculators published on iCalculator™ MY, these tools are provided for your free use on our website. If you would like additional tax table information added to the tax calculators for Malaysia or would like to add to or suggest amendments to the information herein then please contact us.

Malaysia Personal Income Tax Tables in 2024

The Income tax rates and personal allowances in Malaysia are updated annually with new tax tables published for Resident and Non-resident taxpayers. The Tax tables below include the tax rates, thresholds and allowances included in the Malaysia Tax Calculator 2024.

In Malaysia, contributions made by employees to the Employees Provident Fund (EPF) and the Social Security Organization (SOCSO) are deductible from their gross income for the purpose of calculating taxable income. This means that the amounts contributed towards these social security schemes can reduce an employee's taxable base, potentially lowering their overall income tax liability. This provision not only encourages savings and participation in social security programs but also provides tax relief to employees, aligning with Malaysia's broader goals of promoting financial security and welfare for its workforce.

Malaysia Social Security and Payroll Deduction Rates in 2024

In Malaysia, the social security framework encompasses multiple programs designed to protect workers and provide essential benefits. These programs are funded through mandatory contributions from both employers and employees, ensuring a comprehensive safety net for the workforce.

Employees Provident Fund (EPF): The EPF is a retirement savings scheme that serves as the cornerstone of Malaysia's social security system. Contributions to the EPF are made by both employees and employers, aimed at providing employees with financial security upon retirement. The fund also allows for withdrawals under specific conditions, such as for home purchases or medical expenses.

Social Security Organization (SOCSO): SOCSO provides protection to employees against workplace accidents and occupational diseases. It offers two main schemes: the Employment Injury Scheme, covering work-related injuries and diseases, and the Invalidity Scheme, providing coverage for non-work-related disabilities. Contributions are made by employers and employees, based on a percentage of the employee's salary.

Employment Insurance System (EIS): Implemented to provide temporary financial assistance to employees who lose their jobs, the EIS helps with job search and skill training. Contributions are made by both employers and employees. This system aims to reduce the impact of unemployment on workers and the economy.

Malaysia's social security system is designed to be comprehensive, covering various aspects of worker welfare. The EPF focuses on long-term financial security and savings, while SOCSO and EIS address immediate needs related to employment injuries, disabilities, and unemployment.

The administration of these social security programs is aimed at ensuring that workers are protected against the financial risks associated with retirement, disability, and unemployment. By mandating contributions to these programs, Malaysia seeks to promote social well-being and economic stability for its workforce.

For employers operating in Malaysia, understanding the requirements for social security and payroll deductions is crucial for compliance and for providing appropriate support to their employees. For employees, awareness of their contributions and entitlements under the social security system is essential for making informed decisions about their welfare and financial future.

The social security system in Malaysia reflects the country's commitment to supporting its workforce, promoting financial security, and building a resilient society. As Malaysia continues to develop, the role of social security contributions in fostering social and economic stability remains paramount.

Malaysia VAT Rates in 2024

VAT rates for Malaysia are reviewed annually, you can use the VAT Calculator to calculate VAT due in Malaysia or use the Reverse VAT Calculator to calculate the net cost of goods/services after deducting VAT.

Historic Tax Tables supported for Malaysia

The following tax tables are supported by iCalculator™ MY as part of the suite of free tax tools we provide for Malaysia.