Salary Calculator Malaysia for HRMS Payroll System

Salary Calculator Malaysia for HRMS Payroll System

For each company, whether it is process by monthly, fortnightly, weekly salary, required a salary calculation method in order to process employee salary calculation. A salary calculator helps by simplifying the progress of employee salary calculation even based on the laws under employment act in Malaysia.

It can be applied to all employee in a company whether it is a new enrolled employee or a long-term employee in a country.

iFLEXiHRMS Payroll system is a comprehensive payroll management software that allow any organizations can easily manage their employee salary calculation, accurate and efficient.

Learn more about iFLEXiHRMS Payroll System towards employee salary calculation

iFLEXiHRMS Payroll System allow you to one click process employee monthly salary calculation. It is a simple and easy payroll software system by allowing your company employee salary calculation can be done easily and efficiency.

iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.

Various kind of Salary Payment in Malaysia

There are various kind of employee payment in Malaysia including monthly pay, as known as end month pay, fortnightly pay, bonus pay, incentive pay, advanced salary, allowances and other pay in a single payroll process.

In order to handle various kind of employee pay above, a salary calculator has to be capable for calculation all of the above payroll process, in the remains same hiring worker, and even throughout the company’s employee.

A salary calculator will strictly follow Malaysia government rules and regulation, by including employer and employee epf deduction, SOCSO and EIS calculation.

Wages Vs Salary in Malaysia Payroll Calculation

Wait before we proceed, we have to get to know of what is the difference between Wages and Salary in Malaysia, and how does it affected to your payroll calculation.

Wages

– The Wages are paid to the workers.

– In usual, a salary is given to people who are involved in manufacturing work, such as technician, factory workers etc.

– Salary payment period can vary such as fortnightly, weekly or even hourly.

‘Blue-Collar’ workers get this.

– Based workers can get extra payment for hours that contributed out of employment range.

– The rate of salary tend to be not fixed, it will keeps changing throughout the period.

Salary

– The Salaries are paid to the employees.

– In usual, a salary is given to people who are involved in administrative work, such as office lady, managers etc.

– Salary payment period are tend to be fixed at the end of the month.

‘White-Collar’ employee get this.

– Based employees cannot get extra payment for hours that contributed out of employment range.

– The rate of salary tend to be fixed, it will increase based on employee performance as known as salary increment.

Whats is the Minimum Wages Payment for worker in Malaysia?

Every worker in Malaysia deserve a minimum paid no matter what the job scope he/she having (some may be special cases). Every employers in Malaysia required to pay a minimum RM1200 per month in Malaysia. Every employers in Malaysia have to succeed the basic lowest needs.

Learn more about iFLEXiHRMS Payroll System towards employee salary calculation

iFLEXiHRMS Payroll System allow you to one click process employee monthly salary calculation. It is a simple and easy payroll software system by allowing your company employee salary calculation can be done easily and efficiency.

iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.

Key Terms in Salary Calculator

There are various keyword or keyterm while performing salary calculator in Malaysia, things you need to know are:

Gross Salary

Gross Salary refers to a total earnings for an employee, by contributing their work to the employee. It is paid by monthly before any taxes and other deductions. It can includes hourly and salary calculator and any overtime paid to the employee during the pay period.

Hourly Gross Pay

Hourly Gross Pay is calculated by provide multiplying the number of hours worked in the pay period. Also known as paid to the employee according to the hour(s) worked by employee. The higher the hours are, the greater the money is.

Employee Deduction

Employee Deduction was caused by SOCSO, EPF, EIS and such, deduct the employee Gross Salary per month. These deduction are made by the significant percentage to the employee Gross Salary.

Total Deduction in Salary Calculator

Total Deduction is calculated by adding up all employee deduction upon salary calculation.

Net Salary

Net Salary  is the final amount that after one’s employee Gross Salary deducted by all deductions. The amount that also known to be bank in employee bank account (or cash)

Annual Salary

Annual Salary is the total amount of salary calculator earned by an employee on an annual basis before any Employee Deduction, such as EPF, Sosco, EIS and Income Tax. Basically it means Gross Salary * 12.

However, we usually total up employee annual salary after all the deduction made. Which means Net Salary * 12.

Learn more about iFLEXiHRMS Payroll System towards employee salary calculation

iFLEXiHRMS Payroll System allow you to one click process employee monthly salary calculation. It is a simple and easy payroll software system by allowing your company employee salary calculation can be done easily and efficiency.

iFLEXiHRMS Payroll System free up your time from tedious and complex payroll calculations, preparation of pay slips and all statutory submissions. It built for your business, and grow with your business.

Payroll Cycle Calculation in Malaysia

A payroll had to be made to the employee.

Under Employment Act 1955, each employer must pay employee at least once a month.

Each employee salary must be paid as follows:

– Within 7 days after the end of salary period

– For overtime work, within 14 days after the end of the salary period.

How to Perform Salary Calculation in Malaysia

An employee monthly rate of pay is always fixed to 26
An employee weekly rate of pay is 6

Incomplete month:

Salary Formula as follows: (Monthly Salary * Number of days employed in the month / Number of days in the respective month)

Overtime rate: (Basic + Allowance + Incentive) / 26 days / 8 hours

Case Studies:

There is an employee who named FLEXI, worked in a company, who get a basic paid RM2,000 per month.

*Note that the below calculation is not yet processed any deduction

Full work in a month

The employee complete his working month, so he get the paid full. 

Ans: RM2,000

FLEXI failed to fully perform his work in January. He takes 8 days and rest in home.

The incomplete month formula had to be applied in this situation, therefore the calculation had to be made:

 (Monthly Salary * Number of days employed in the month / Number of days in the respective month)

= (RM2,000 * 23 / 31)

= RM1483.87

How to get number of days employed in a month? We know that January had 31 days. FLEXI take 8 days rest which means we use 31 – 8 and get 23 days (working)

FLEXI colleague had been ran to an accident and requested to rest in hospital. FLEXI had been arranged to take care of his colleague job temporarily. However, FLEXI had to take 2 hours overtime each days in order to complete both of his work and his colleague. His colleague return back to work after 5 days from that accident.

FLEXI had to take 2 hours of overtime each day. We also known that his colleague went to hospital for 5 days before he returned back to work, as for calculated here. FLEXI overtime in total 2hours * 5 days = 10 hours in total.

Overtime formula

(Basic + Allowance + Incentive) / 26 / 8 * 10hours

= RM2,000 / 26 / 8 * 10

= RM96.15

FLEXI get RM96.15 for over timing 10 hours

Try iFlexiHRMS Payroll Solution for One Click Generate Your Salary Calculation

iFLEXiHRMS Payroll System allow you to one click process employee monthly salary calculation. It is a simple and easy payroll software system by allowing your company employee salary calculation can be done easily and efficiency.

One click perform employee payroll calculation, you are not required to memorized all payroll formula and employee salary calculation.

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