Employer cost calculator: Malaysia YA2026

What an employee really costs in Malaysia: gross salary plus mandatory employer contributions. A RM5,000 monthly salary costs about RM5,797 (1.16× gross).

Gross salary per month (MYR)

Total cost to employer per month

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Employer cost by salary

Employer EPF 13% (12% above RM5,000), SOCSO 1.75% and EIS 0.2% up to RM6,000, and the 1% HRD Corp levy in covered sectors.

Gross per month	RM3,000	RM5,000	RM10,000	RM20,000
EPF	RM390	RM650	RM1,200	RM2,400
SOCSO	RM52	RM87	RM104	RM104
EIS	RM6	RM10	RM12	RM12
HRD Corp levy	RM30	RM50	RM100	RM200
Total employer cost	RM3,478	RM5,797	RM11,416	RM22,716
Cost multiplier	1.159×	1.159×	1.142×	1.136×
Employee take-home	RM2,649	RM4,305	RM7,929	RM14,329

EPF 13% up to RM5,000, 12% above. SOCSO 1.75% and EIS 0.2% on wages up to RM6,000. HRD Corp levy 1% applies to covered sectors with 10+ Malaysian employees (hrd=0.5 for voluntary 5–9 staff, hrd=false if not covered).

Employee side: Malaysia take-home pay calculator.

Building payroll, EOR or salary-advance software? Get these numbers as JSON: GET /v1/employer-cost?country=my&gross=… — free API key, 1,000 calls/month.

Questions

How much does it cost to employ someone in Malaysia?

On top of gross pay, employers in Malaysia pay employer EPF 13% (12% above RM5,000), SOCSO 1.75% and EIS 0.2% up to RM6,000, and the 1% HRD Corp levy in covered sectors. For a RM5,000 monthly salary the total is about RM5,797, or 1.16 times gross pay.

Does this include benefits or an EOR fee?

No. It covers statutory employer contributions and mandatory accruals only. Private health insurance, allowances, equipment and Employer of Record fees come on top.

Sources

Updated 2026-11-13. Estimates for planning only, not tax advice.