Salary Calculator for Malaysian SME

Actpay simplifies monthly employee salary calculator functions making it the best payroll software system for small and medium businesses in Malaysia. Targeted at Malaysian SME’s, Actpay’s payroll calculator functions simplifies and speeds up monthly payroll calculations, submissions and reporting processes.

Actpay is a complete, easy to use made in Malaysia payroll system that includes all the salary calculations and reporting functions needed for Malaysian companies. Handle up to 200 payroll staff at a very affordable payroll software price.

The monthly payroll procedure can be completed in minutes with just 3 simple steps.

Salary Calculator input data

Finish your salary calculations fast and easy without any complex procedures. No need to move from screen to screen. All your payroll calculations in one screen. As easy as 123.

To produce a monthly payslip, the user just needs to input basic salary, allowances, overtime and click Calculate Payslip. This is all that is needed to automatically generate the final salary and all government Statutory deductions including EPF, SOCSO, PCB, EIS and HRDF. An added benefit is producing the Annual EA Form and E Form at the end of the year making Actpay a complete payroll application for Malaysia payroll management.

Government required Statutory Salary calculator functions.

  1. EPF – Employees Provident Fund (KWSP – Kumpulan Wang Simpanan Pekerja)
  2. SOCSO – Social Security Organization ( PERKESO – Pertubuhan Keselamatan Sosial)
  3. EIS – Employment Insurance System (SIP –  Sistem Insurans Pekerjaan)
  4. MTD Income Tax Calculator- Monthly Tax Deduction (PCB – Potongan Cukai Bulanan)
  5. HRDF (Human Resources Development Fund)

The PCB calculator in Actpay has been approved by LHDN and has 100% calculation accuracy verified repeatedly over the last 5 years.

The basic input values required to calculate the gross salary are Basic Salary, Allowances, Deductions and Overtime. This gross salary and statutory deductions are then used to calculate the final Net Pay. Recurring allowances can be automated to make the process even faster.

Salary Calculator : Simple Monthly 3 step procedure.

  1. Initialise – Set the default and recurring monthly payroll values.
  2. Edit/Add – Enter variable allowances like commission and overtime.
  3. Click Calculate Payslip to complete payroll calculations.

Following is a summary of the monthly payroll procedure.

Monthly salary calculations procedure

  1. Initialize Month Values
    This is done at the beginning of each month. This procedure will update the current month values with the basic pay and any recurring allowances and deductions. This is all the data needed to begin calculations.
  2. Edit and make changes to overtime and allowances.
    Now go to the individual staff screen and Click “Edit” to make the necessary changes. This procedure is to input values that change each month like overtime and commission. If there are no changes, you do not have to add any information. The initialize month function is enough. If there are fixed monthly allowances for the staff, this information will be automatically updated in through the Initialize month procedure.
  3. Calculate current month.
    Once the necessary values have been input, Click “Calc Payslip”. The payroll calculator functions will automatically calculate Overtime, EPF, SOCSO and PCB. Just one Click for the complete payroll calculations.
    Once all the staff have been checked and edited, Click “Calculate Staff Pay” in the report screen. Run this once to make sure all the staff salary have been calculated just in case you left out any staff. The salary calculations are now complete. You can now run “Update Y-T-D” to lock and update YTD information for the month.

Monthly Payroll Calculation – Explanation

The monthly total wages and deductions are separated into income subject to EPF and income not subject to EPF. The EPF for employee and employer is calculated based on the gross income subject to EPF. EPF can be based on the default government values or set to custom rates where required. The EPF calculator automatically calculate the right values based on the preset EPF rates.

Similarly income subject to SOCSO, EIS and PCB are calculated based on the allowance and deduction settings. The Net pay is then calculated after all these Statutory deductions are deducted from Gross income.

PCB Calculations for Monthly Income tax deduction is the most difficult component of payroll calculations. Actpay’s PCB calculations are LHDN approved and have been error free for the last 3 years with 100% accurate results right down to the last decimal point. We have even included a feature that allows you to verify all your PCB calculations using the PCB online calculator from LHDN from within the program.

Salary calculator Monthly screen

Using the Actpay salary calculator is as simple as entering the income and deduction values and clicking Calculate. All calculations are automatic. No need to refer to tables or the internet for the right values. Correct calculations every time.

Overtime Calculator Funtions

Overtime calculations The overtime calculator is used to calculate income based on the overtime rates for work done after normal working hours, rest days and public holidays. The legal overtime rates are 1.5, 2.0 and 3.0, for normal days, rest days and public holidays respectively. These rates apply to all staff that fall within the definition of the Malaysian Employment Act.

These rates are legally binding all staff with basic salary of up to RM2,000 and also for certain specific categories of staff. For staff with a higher salary, the hourly rates are contractual. For contractual hourly rates, the 1.0 rates can be used.

Watch the following video to see an example of a monthly payroll run. This example simulates the typical monthly payroll procedure with 20 sample staff.

Other Salary Calculations

There are some other less used payroll calculations like unpaid leave, bonus and leave. These calculations are not done often, but are still a vital component of monthly payroll processing. These calculations are also completely automated for error free payroll management. This easy to use salary calculator makes monthly payroll processing easy and accurate, saving time and a stress free operation.

Monthly Payroll Reports and Procedures

The calculations are only one part of the whole monthly salary process. The other part is the reporting functions.

payroll reports

Reports can be divided into 7 categories.

  1. General reports to get total monthly cost for the company.
  2. Paylips
  3. Statutory government reports.
  4. File exports to be uploaded to pay statutory government deductions.
  5. Annual EA and E form related report.
  6. General reports to get greater details on staff salaries.
  7. Bank reports to upload salary and government payments through the bank.

All these reports are available at a click of a button, saving countless hours of work. Also, all these reports can be exported as Excel and PDF files for further processing.

1 General Monthly Payroll Reports

The following is a sample of the Detailed Monthly report on Employee Salary. This report provides the detailed information on each individual staff as well as the company totals.

Detailed monthly report.

2. Payslip

Detailed monthly payslip.

Monthly payslip

3. Statutory government reports.

Printed reports for EPF, SOCSO, PCB and EIS.

Sample EPF report

4. File exports to be uploaded to pay statutory government deductions.

The payroll software generates the required text files for upload to EPF, SOCSO, PCB and EIS.

5.Annual EA and E form related report.

Print the end of year EA form and E-Form (CP.8D)

Sample EA Form

6. General payroll reports to get greater details on staff salaries.

Miscellaneous reports useful for general payroll operations.

7. Bank reports to upload salary and government payments through the bank.

The Actpay Payroll Software can generate various bank reports for upload to the banks. These reports can be will directly deduct and pay staff through the banks. The reports available vary from bank to bank.

More sample reports can be found here :

Salary Calculator Summary

In summary it can be seen that using the Actpay Payroll Software for monthly salary calculations will save the company a considerable amount of time and energy for this difficult monthly process. Plus there is the added bonus of knowing that the payroll calculations are 100% correct.

More detailed information can be found at :

Allowances and Deduction Setup

Monthly Allowances

The Actpay Payroll Software can handle up to 15 custom allowances. Each of these allowances can be customised to handle specific Statutory deductions. The allowances can be programmed to calculate or ignore EPF, SOCSO, PCB and EIS individually. Although 90% of allowances are subject to EPF, SOCSO and PCB, there are quite a number of allowances that do not attract all or some of these Statutory deductions. In Actpay these allowances can be set independently to achieve the required results.

Allowance settings Setup

Benefit in Kind

The income tax calculator function that generates the PCB values requires the details of income paid in the payslip as well as income and benefits not paid together with the payslip. These external items fall into the category of Benefit in Kind. Examples of Benefit in Kind include company car, driver and house rent. This income in kind will be added to the basic salary and allowances to get the total income subject to PCB income tax calculations.

Benefit in kind settings

Monthly Deductions

As a payroll calculator, Actpay also allows the option to have 10 custom deductions and 2 fixed deductions. The 2 fixed deductions are loan repayment and Cp38. The other special deduction is Zakat that directly affects PCB tax calculations.

Deduction settings setup