Worked example: two colleagues, one salary
Aisyah and Priya both earn RM6,000 a month with no allowances and no TP1 reliefs beyond the automatic ones. Aisyah is single. Priya is married with a non-working spouse and two children under 18.
Aisyah (single):
- Annual income RM72,000 − RM9,000 (personal) − RM4,000 (EPF) = RM59,000 chargeable
- Tax: RM150 + RM450 + RM900 + (RM9,000 × 11% = RM990) = RM2,490 a year
- PCB: RM2,490 ÷ 12 = RM207.50 a month
Priya (married, non-working spouse, 2 children):
- Reliefs: RM9,000 + RM4,000 (spouse) + RM4,000 (2 children × RM2,000) + RM4,000 (EPF) = RM21,000
- Chargeable income: RM72,000 − RM21,000 = RM51,000
- Tax: RM150 + RM450 + RM900 + (RM1,000 × 11% = RM110) = RM1,610 a year
- PCB: RM1,610 ÷ 12 = RM134.20 a month
Same office, same salary — a difference of RM73.30 a month, entirely from reliefs. Neither payslip is wrong.
The five reasons your PCB differs
| Reason | How it changes your PCB |
|---|---|
| Marital status | A non-working spouse adds RM4,000 spouse relief; a working spouse adds none |
| Children | RM2,000 per child under 18, RM8,000 per child in full-time tertiary education |
| Allowances and overtime | Taxable allowances raise projected annual income, so PCB rises |
| TP1 reliefs declared | Lifestyle (RM2,500), PRS (RM3,000) and other declared reliefs lower chargeable income — but only if you told HR |
| Bonuses and job changes | A bonus is additional remuneration taxed on top; a mid-year job change re-projects the whole year |
The most common and most fixable cause is the last-but-one: HR only uses the reliefs it knows about. If you never submitted Form TP1, payroll runs on defaults — personal relief, spouse and children only — and you pay the maximum PCB every month.
What to do about it
- Ask HR for Borang TP1 and list every relief you genuinely qualify for, with receipts kept.
- Submit it as soon as your circumstances change (marriage, a child, a new insurance policy), not just at year end.
- Check your payslip against the PCBCalc net salary calculator. A large gap usually means a missing TP1 declaration or an allowance you forgot.
- Remember PCB is an estimate. Your final tax is settled at e-Filing; over-deduction comes back as a refund.
Internal links
- Net salary calculator
- TP1 guide
- PCB tax bracket table 2026
- How to read your payslip
- PCB vs contributions explained
FAQs
Q: Can HR just lower my PCB if I ask?
A: No — HR must follow LHDN's MTD method. It can only apply reliefs you have properly declared.
Q: Does a higher salary always mean higher PCB?
A: Not always month to month: reliefs, the RM400 rebate threshold and the remaining-months division all affect the monthly figure.
Q: Why did my PCB change when nothing changed?
A: A salary increment, a new allowance, a bonus, or reaching a new tax bracket mid-year can all move it.
Q: Is my colleague's PCB confidential?
A: Yes — never compare actual payslips without consent. Compare the rules, not each other's numbers.
Q: What if my PCB looks far too high?
A: Check for missing TP1 reliefs first, then verify against LHDN's e-PCB calculator and raise it with HR.
Q: Do non-residents follow the same rules?
A: No. Non-residents are generally taxed at a flat 30% with no reliefs — a different system entirely.
Q: Will e-Filing fix an over-deduction?
A: Yes. PCB is an advance payment; any excess over your final tax is refunded after filing.
Not tax advice.