Gross salary
Gross salary is the monthly salary before deductions. This is usually the number shown in job ads, offer letters and salary negotiations.
Net salary or take-home pay
Net salary is the amount you estimate will remain after deductions such as EPF, SOCSO, EIS and income tax. This is closer to what you plan your monthly cashflow around.
Why two offers with the same increment can feel different
A higher salary may increase both EPF and tax. This means two offers with similar gross increases may feel different after deductions. Use side-by-side comparison to understand what changes.
Simple rule: use gross salary for negotiation, but use estimated take-home pay for budgeting.
What to enter in the calculator
- Monthly basic salary from your offer letter or payslip.
- Fixed monthly allowance if it is recurring.
- Annual bonus only if you want it included in the tax estimate.
- Extra tax reliefs only if you know you can claim them.