Malaysian Payroll on Carbonate

We at Carbonate support payroll of multiple countries. Malaysia is one of them.

We calculate EPF, SOCSO, EIS, TAX at our end and follow all the latest rules set by the Malaysian Government.

EPF :

EPF is a retirement saving scheme for employees who are liable to contribute EPF in Malaysia. The interest on the PF contribution is credited to the PF account at the end of the financial year. The EPF interest rates are fixed by the government each year.

In Carbonate, EPF will be calculated based on Basic salary, allowances and deductions added while generating payslips.

For the EPF calculation we follow the latest rules which are Effective 1 July 2022 from this government provided website

Tax Calculation :

We calculate tax in Carbonate while generating payslip for Malaysian users.It is important to add / import all the past payslips of user for the year before generating new payslip.

While generating payslips Tax will be calculated based on Basic salary, allowances, deductions, past taxes and EPF amounts.

You can verify the tax amount on this website link http://calcpcb.hasil.gov.my/index.php?&lang=eng

SOCSO : 

There are 2 schemes that are governed under the Employees’ Social Security Act 1969 – the Employment Injury Scheme that protects an employee against occupational accident or disease, and the Invalidity Scheme that insures an employee who is unable to work due to incurable or unlikely to be cured condition or death. It is compulsory for all Malaysian and permanent resident employees to register with SOCSO except for Federal and State Government permanent employees, domestic servants, and those who are self-employed. Foreign workers are protected under SOCSO as well since January 2019.

SOCSO rates were lastly updated on Sep 2022. We support both rates before and after the rates changed on Sep 2022

Formula to calculate SOCSO is : Basic salary + Additional allowance - Additional deduction + OT

We follow SOCSO rates given on website : https://www.perkeso.gov.my/en/rate-of-contribution.html

EIS : 

EIS is governed under the Employment Insurance System Act 2017 and administered by SOCSO as well, this insurance protects employees aged 18 to 60 who have lost their employment except in the case of voluntary resignation, expiry of the contract, unconditional termination of the contract, completion of a project specified in a contract, retirement, and dismissal due to misconduct.

Formula to calculate EIS is : Basic salary + Additional allowance - deduction + OT

We follow EIS rates from the link https://www.perkeso.gov.my/en/rate-of-contribution.html