Simple Guide to Use PCB Calculator 2025 in Malaysia

In Malaysia, the Monthly Tax Deduction (MTD), or Potongan Cukai Bulanan (PCB), ensures that employees contribute their taxes progressively throughout the year.

If you're wondering how much tax will be deducted from your salary in 2025, the PCB Calculator is your best friend.

This tool helps you estimate your deductions accurately, making tax management easier for employees and employers alike.

What is PCB, and Why is It Important?

PCB, also known as Monthly Tax Deduction (MTD), is a tax deduction system implemented by LHDN to help employees pay their income taxes in manageable monthly installments.

It minimizes the burden of a lump-sum payment during tax season and ensures that taxes are paid consistently throughout the year.

Employers are required by law to deduct PCB from employees’ salaries and remit the amount to LHDN.

How to Use the PCB Calculator 2025 in Malaysia

Step 1: Access the PCB Calculator

The first step to calculating PCB is accessing the official PCB Calculator provided by LHDN.

Open your preferred web browser and navigate to the Inland Revenue Board’s website. Once there, locate the Kalkulator PCB section.

When you open the calculator, select the option for the employee’s employment status.

For employees who joined your company during the current year, choose “Not Previously Employed in Current Year.”

This ensures that the calculator processes tax deductions accurately for their situation.

Also, ensure that the MTD Calculation Year is set to 2025 before you proceed to the next step.

Step 2: Enter Employee Personal Details

Accurate employee details are crucial for precise tax deductions. Fill in the following fields:

Name: Enter the employee’s full name as per their NRIC or passport.
New Identity Card No.: Provide the NRIC or passport number.
Month: Choose the month for which you’re calculating PCB.
Marital Status: Select the appropriate status from the dropdown menu.
Residency Status: Indicate whether the employee is a Resident or Non-Resident based on their tax residency.
Disabled Status: Mark Yes or No if the employee or their spouse is disabled.
Number of Children: Enter the number of eligible dependents:
- Children under 18 years.
- Children above 18 studying full-time in Malaysia or abroad.
- Disabled children or disabled children pursuing higher education.

Step 3: Input Current Month’s Remuneration

In this step, input the employee’s taxable income and related deductions:

Current Month’s Remuneration: Include gross monthly salary and other taxable earnings.
EPF Contributions: Enter the amount contributed to EPF (up to RM4,000 annually).
Benefit-In-Kind (BIK): If the employee received perks like a company car or medical benefits, enter their value.
Value of Living Accommodation (VOLA): If housing is provided, input its value.

The calculator will automatically compute the net monthly remuneration after considering the EPF and other deductions.

Step 4: Add Additional Monthly Income (If Applicable)

If your employee received any non-regular income during the month, such as bonuses or commissions, include them in this section:

Additional Income Types:
- Bonus
- Commissions (if not paid monthly)
- Arrears or back pay
- Gratuity
- Director’s fees
EPF Contributions on Additional Income: Include relevant EPF contributions (up to RM4,000 annually).

The calculator will determine the Net Additional Remuneration by deducting EPF contributions from the additional income.

Step 5: Calculate PCB

Before calculating the PCB, double-check all the details you’ve entered, including personal information, monthly remuneration, and any additional income.

Once verified, scroll to the bottom of the page and click on the Calculate button.

The calculator will generate the PCB deduction amount for the selected month.

The result is typically rounded to the nearest five cents.

Step 6: Review the Calculation Results

After the calculation, review the results displayed in the Calculation Result section. You have several options:

Print Results: Save or print the results in HTML or PDF format for your records.
Reset: Clear all fields to start a new calculation.
Calculate Next Month: Carry forward accumulated values to calculate PCB for the following month.

Step 7: Calculate PCB for the Following Month

If you’re preparing to calculate PCB for the next month, simply click on the Calculate Next Month button.

The calculator will retain all necessary details, including cumulative remuneration and deductions.

Before finalizing the next month’s calculation, review any changes in the employee’s salary or benefits.

Update the information in the calculator if required. After verifying the entries, click on Calculate to generate the PCB deduction for the next month.

FAQs About PCB Calculator 2025

Q1: Is the PCB Calculator 2025 free to use?

Yes, most PCB calculators provided by LHDN or third-party websites are free of charge.

Q2: Can I rely entirely on the PCB Calculator for my tax planning?

While it’s accurate, it’s always good to cross-check with your employer or a tax consultant.

Q3: Do self-employed individuals need to use the PCB Calculator?

No, PCB is primarily for salaried employees. Self-employed individuals need to handle their tax filings separately.

Q4: How does EPF contribution impact PCB?

EPF contributions reduce taxable income, which directly lowers the PCB amount. Employers must ensure that the EPF contributions do not exceed the yearly limit of RM4,000 when calculating PCB.

Q5: Can I calculate PCB for part-time or contract employees?

Yes, you can calculate PCB for part-time and contract employees if their income meets the tax threshold. Ensure that all income details and benefits are accurately included in the calculation.

Q6: What if an employee’s salary changes?

If an employee’s salary changes due to a promotion or other adjustments, update their Current Month’s Remuneration in the calculator. Ensure that the changes are reflected in subsequent months.

The PCB Calculator 2025 is an invaluable resource for Malaysian employers, helping ensure compliance with tax regulations and accurate monthly deductions.

By following this step-by-step guide, employers can efficiently manage their payroll processes while avoiding common tax errors.

Make it a habit to recalculate PCB every month, as changes in income, marital status, or dependents can significantly impact the results.

For more information, visit LHDN Malaysia’s official website.

Are you hiring in 2025?

Start your hiring journey with Ajobthing today! Post your job ads, connect with top talents, and streamline your recruitment process with our easy-to-use platform.