Why your payslip shows several deductions
Malaysia's payroll deductions do not all go to the same institution. If you see PCB, EPF, SOCSO and EIS on one payslip, it does not mean income tax has been charged four times. Each item has a separate purpose, calculation method and eligibility test.
1. PCB / MTD — income tax instalments
Potongan Cukai Bulanan (PCB), or Monthly Tax Deduction (MTD), is a payroll mechanism for collecting estimated income tax during the year. The amount can depend on taxable remuneration, month, residency status, family information, allowable reliefs and earlier income or tax already deducted. That is why two people with the same basic salary may have different PCB.
2. EPF / KWSP — retirement savings
Employees and employers can both have EPF contribution obligations. The employer share is generally an additional employer expense, not an amount deducted from the worker's salary. The relevant EPF wage schedule and employee category matter: do not assume every salary amount should simply be multiplied by a flat percentage. KWSP provides the Third Schedule for the applicable contribution period.
3. SOCSO / PERKESO — social security
PERKESO administers employment-related social protection under applicable schemes. Contribution categories can depend on coverage and eligibility, including age and other conditions. Your employer's contribution and the employee portion must not be confused: the employer portion does not normally reduce employee take-home pay.
4. EIS / SIP — employment insurance
The Employment Insurance System supports eligible workers in circumstances covered by the programme. Not all categories have the same contribution eligibility. Check the current PERKESO schedule instead of assuming EIS is always due.
A practical payslip check
- Start with gross pay and separate basic salary, allowance, overtime and bonus items.
- Identify each employee-side deduction, not the employer's additional contribution.
- Check whether PCB includes relevant prior-year-to-date payroll information.
- Compare the final net pay against gross pay minus the actual employee deductions.
- If a value is surprising, ask payroll which official table or formula was used.
Use our calculator to explore a supported example, but do not use it as an official payroll certificate.
Official references
- HASiL — PCB specifications and 2026 testing questions
- KWSP — EPF Third Schedule
- PERKESO — SOCSO/EIS contributions
Use official records and current tables to confirm deductions. Links open third-party sites.