Malaysia Payslip Requirements: Complete LHDN & Employment Act Guide for 2026

A Malaysian payslip (slip gaji) shows what an employee earned in the month, each statutory deduction taken for KWSP, PERKESO and LHDN, and the net pay. This guide covers what goes on it in 2026, the current rates and ceilings, and the change most payslips missed this year: the PERKESO Lindung 24 Jam (SKBBK) deduction that started on 1 June 2026.

The rules that apply

• Employment Act 1955 covers Peninsular Malaysia and Labuan. Sabah and Sarawak have their own Labour Ordinances with similar rules on wages.
• Since 1 January 2023 the Act covers every employee, whatever they earn. Some parts, such as the overtime, rest day and public holiday rates and termination benefits, only apply to employees earning up to RM4,000 a month and to the manual and other jobs in its First Schedule.
• A wage period can't be longer than a month, and wages are paid within 7 days after the end of the wage period.
• Employers keep a record of each employee's wages and deductions. A monthly payslip is how employees get those details, and it's what banks, landlords and LHDN ask to see.
• The minimum wage is RM1,700 a month (RM8.72 an hour), in force since 1 February 2025, and since 1 August 2025 for employers with fewer than five employees.

What a Malaysian payslip shows

Employer and employee

• Employer's name and address
• Employee's name, NRIC or passport number, and employee number
• EPF (KWSP) number, and the SOCSO and income tax numbers if you have them

The period

• The wage period (from and to) and the payment date

Earnings

• Basic salary (gaji pokok)
• Allowances, each on its own line (transport, meal, shift, phone)
• Overtime, with the hours and the rate
• Commission, bonus or incentive
• Gross pay (gaji kasar)

Deductions (potongan)

• EPF / KWSP (employee share)
• SOCSO / PERKESO (employee share)
• EIS / SIP (employee share)
• PERKESO Lindung 24 Jam (SKBBK), from June 2026
• PCB / MTD (monthly tax deduction)
• Zakat, if the employee pays it through payroll
• Other deductions agreed with the employee (salary advance, loan repayment)

Net pay (gaji bersih), and many employers also show their own EPF, SOCSO and EIS contributions underneath.

EPF (KWSP) in 2026

The amount isn't simply 11% of the salary. Up to RM20,000 a month it comes from the Third Schedule: wages are grouped into bands (RM20 wide up to RM5,000, RM100 wide up to RM20,000), the rate is applied to the top of the band, and the result is rounded up to the next ringgit.

• RM3,000.00 falls in the RM2,980.01–3,000.00 band: employee RM330, employer RM390.
• RM3,010.00 falls in the RM3,000.01–3,020.00 band: 11% of RM3,020 is RM332.20, so the employee pays RM333.

Rates are lower from age 60.

SOCSO (PERKESO) in 2026

SOCSO has two schemes for employees under 60: the Employment Injury Scheme, paid by the employer, and the Invalidity Scheme, shared. Together that's about 1.75% from the employer and 0.5% from the employee, read from PERKESO's wage table, on wages up to RM6,000 a month (the ceiling since October 2024).

Employees aged 60 and over are covered by the Employment Injury Scheme only, paid by the employer. Foreign workers are covered by the Employment Injury Scheme too.

PERKESO Lindung 24 Jam (SKBBK), from 1 June 2026

SKBBK, known as PERKESO Lindung 24 Jam, extends SOCSO cover to accidents outside working hours. It's paid by the employee only, at 0.75% of wages up to RM6,000, from the same wage table as SOCSO, and paid to PERKESO with the SOCSO contribution.

Malaysian employees were given until 31 August 2026 to opt out through PERKESO; anyone who didn't pays it. Foreign workers must pay it. The rate is set to rise in later years.

EIS (SIP) in 2026

The Employment Insurance System is 0.2% from the employee and 0.2% from the employer, also from a wage table and capped at RM6,000: RM5.90 each on RM3,000 and RM11.90 each above RM6,000. It covers employees aged 18 to 60, not foreign workers or domestic workers.

PCB / MTD (monthly tax deduction)

Employers deduct PCB each month under LHDN's schedule and pay it to LHDN by the 15th of the next month. It's worked out on the year's expected pay, less the reliefs the employee is entitled to.

Resident rates for YA 2026

• Individual relief: RM9,000. EPF relief: up to RM4,000 a year.
• Rebate: RM400 off the tax when chargeable income is RM35,000 or less. That's why most employees earning up to about RM3,000 a month pay no PCB.
• Employees can claim other reliefs (spouse, children, insurance, zakat) through Form TP1, which lowers PCB.
• Non-residents (in Malaysia less than 182 days in the year) are taxed at a flat 30% on employment income.

Worked examples (October 2026)

Under 60, Malaysian, single with no extra reliefs, in Lindung 24 Jam:

PCB on RM5,000: chargeable income is RM60,000 − RM9,000 − RM4,000 = RM47,000, tax RM1,320 a year, so about RM110 a month. LHDN's own calculator works it out month by month and can differ slightly.

Annual forms and record keeping

• EA form (Borang EA): each employee gets one by the end of February, showing the year's pay and the PCB deducted.
• Records: keep payroll records for 7 years, which is how far back LHDN can look.
• Payslips can be given on paper or electronically, for example as a PDF by email, as long as the employee can open and keep them.

Common mistakes in 2026

• Missing SKBBK: payslips from June 2026 should show Lindung 24 Jam for everyone who didn't opt out, so net pay on an old template is too high.
• Old ceilings: SOCSO and EIS stop at RM6,000 now, not RM5,000 or RM4,000.
• EPF at a flat 11%: the Third Schedule rounds up, so a flat percentage can be short by up to RM2.
• Foreign workers: they pay EPF at 2% since October 2025 and SKBBK, but not EIS.

Making the payslip

The PayStub Guru Malaysian payslip generator works out EPF from the Third Schedule, SOCSO, EIS and SKBBK from the PERKESO tables, and an estimate of PCB, with labels in Malay and English. Any line can be typed over to match LHDN's calculator or a foreign worker's rates. Preview free; watermark-free PDFs are RM9.90 for 24 hours. See how to generate a Malaysian payslip for a walkthrough.

Frequently asked questions

Do Malaysian employers have to give payslips?

Employers must keep a record of each employee's wages and deductions, and the payslip is how employees see it each month. Employees also need payslips for loans, tenancies and their tax return, so every employer should give one.

What is SKBBK on my payslip?

It's PERKESO's Lindung 24 Jam scheme, which started on 1 June 2026. You pay 0.75% of your wages (up to RM6,000) for cover against accidents outside work. Malaysians could opt out by 31 August 2026.

Why is my EPF RM333 and not RM331.10?

EPF comes from the Third Schedule: the 11% is applied to the top of your wage band and rounded up to the next ringgit.

Why is there no PCB on my payslip?

After the RM9,000 individual relief, the EPF relief and the RM400 rebate, many employees earning up to about RM3,000 a month owe no tax, so no PCB is deducted.

Are bonuses subject to EPF and PCB?

Yes. Bonuses are wages for EPF and taxable for PCB, which LHDN's schedule spreads in a particular way. They aren't subject to SOCSO, EIS or SKBBK.

Last updated: 26 October 2026. Based on YA 2026 tax rates, the KWSP Third Schedule and PERKESO's tables with the RM6,000 ceiling. Check with LHDN, KWSP and PERKESO for an individual case.