How to Calculate Wage for Salary Calculator Malaysia 2022?
Minimum wage is the lowest wage permitted by law or by a special agreement. This minimum wages also defined as the minimum amount of remuneration that an employer required to pay wages malaysia earners for performance work during a given period.Â
This minimum wage cannot be reduced by collective agreement or an individual contract. Salary calculator Malaysia that provides salary information to the user based on laws calculation for payroll system in Malaysia.
Salary Calculator Malaysia with Minimum Wages Legislation
The minimum wages legislation are:
- National Wages Consultative Council Act 2011[Act 732],
- Minimum Wages Order 2012,
- Guidelines on the Implementation of the Minimum Wages Order 2012,
- Minimum Wages (Amendment) Order 2012,
- Minimum Wages (Amendment) Order 2013,
- Minimum Wages (Amendment)(No.2) Order 2013,
- Minimum Wages (Amendment)(No.3) Order 2013,
- Employment Act 1955,
- Sabah Labour Ordinance [Cap.67],
- Sarawak Labour Ordinance [Cap.76],
- Industrial Relations Act 1967 [Act 1977],
- Employment (Part-Time Employees) Regulation 2010,
- Labour (Part-Time Employees)(Sarawak) Rules 2013,
- Labour (Part-Time Employees)(Sabah) Rules 2013,
- Income Tax (Deduction For Expenditure in Relation to Minimum Wages) Rules 2014.
Malaysia has different wage rates for different regions. For the Peninsular Malaysia, the monthly rate of the minimum wages is different from the one in Sabah, Sarawak and Federal Territory of Labuan.
This is in accordance with Section 4 of the Minimum Wages order 2012.
The criteria to decide minimum wages are divided in two:
- Base criteria – include Poverty Line Income (PLI) and Median Wage,
- Adjustment criteria – include changes in Consumer Price Index (CPI), Productivity Growth (P) and Real Unemployment Rate (UE).
Salary Calculator for Minimum Wage in year 2022
A government has decided to raise the minimum monthly wage from RM1, 100 to RM1,200 and will take effect from 1st January 2020 in major. This new minimum wage follows the tabling of Budget 2020 and the decision of the Cabinet on 6th December 2019. These increments only affected to major towns under 57 cities. While the minimum wage remains at RM1, 100 for the rest of the country.
Details on the minimum wage according to hours and days as well as workers paid according to piece rate, trip, commission, tonne and task would be provided under the new minimum wage.
Among the cities listed are Johor Bahru, Iskandar Puteri, Alor Setar,Melaka, Penang, Seberang Perai, Ipoh, Shah Alam, Petaling Jaya, Kuala Terengganu, North Kuching, South Kuching, Miri, Kota Kinabalu, Kuala Lumpur while the major towns are Batu Pahat, Kluang, Kulai, Muar, Segamat, Pasir Gudang, Kulim, Sungai Petani, Langkawi, Kubang Pasu and Kota Bharu.
Also listed are Alor Gajah, Jasin, Hang Tuah Jaya, Seremban, Nilai, Port Dickson, Jempol, Kuantan, Temerloh, Bentong, Manjung, Kuala Kangsar, Taiping, Teluk Intan, Kangar, Ampang Jaya, Kajang, Klang Selayang, Subang Jaya, Sepang, Kemaman, Dungun, Padawan, Sibu, Kota Samarahan, Bintulu, Sandakan, Tawau, Labuan and Putrajaya.
Without Overtime
Basic Salary: RM1200.00 (Minimum Wage
EPF Calculation:
Employee Contribution: RM1200 * 11% = RM132
Employer Contribution: RM1200 * 13% = RM156
SOCSO Amount (Directed to SOCSO Table):
Employee Contribution: RM5.75
Employer Contribution: RM20.15
EIS Amount (Directed to EIS Table):
Employee Contribution: RM2.30
Employer Contribution: RM2.30
Therefore, Net pay should be paid as below formula:
Net Pay= Basic Salary – (Employee EPF + Employee SOCSO + Employee EIS)
Net Pay = RM1200 – (RM132 + RM5.75 + RM2.30) = = RM1059.95
With Overtime
Basic Salary: RM1200
Overtime: 2 hours (per month)
Overtime Calculation:
Formula= Basic Salary / 26 / 8
:RM1200 / 26/ 8 = RM5.7692
Total of Overtime
: RM5.7692 * 2 hours = RM11.5384
EPF Calculation:
Employee Contribution: RM1200 * 11% = RM132
Employer Contribution: RM1200 * 13% = RM156
SOCSO Amount (Directed to SOCSO Table):
Employee Contribution: RM6.25
Employer Contribution: RM21.85
EIS Amount (Directed to EIS Table):
Employee Contribution: RM2.50
Employer Contribution: RM2.50
Therefore, Net Pay should be paid as below formula:
Net Pay= Basic Salary + Overtime – (Employee EPF + Employee SOCSO + Employee EIS)
: RM1200 + RM11.5384 – (RM132 + RM6.25 + RM2.50) = RM1070.7884
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