What is PCB (Monthly Tax Deduction)?
PCB (Potongan Cukai Bulanan) is a system where your income tax is
deducted automatically from your salary every month.
Instead of paying a large amount at the end of the year, your
employer deducts a portion of your income and submits it to LHDN on
your behalf.
This helps:
- Spread out your tax payments
- Avoid large year-end tax bills
- Keep your tax obligations consistent
💡 PCB is not an extra tax — it is an advance payment of your annual
income tax.
How to Calculate PCB
PCB is calculated based on your estimated annual income, not just
your monthly salary.
Here’s a simple breakdown:
Step 1: Calculate Total Income
Include:
Monthly salary, Bonus or additional income
Step 2: Deduct EPF Contribution
EPF reduces
your taxable income.
Example: Salary RM5,000 - EPF (11%) RM550 =
Remaining income RM4,450
Step 3: Apply Tax Reliefs
Tax reliefs may
include Individual relief, Spouse or child relief, or Zakat (if
applicable).
Step 4: Estimate Annual Income
Multiply
monthly income by 12.
Step 5: Apply Tax Rate
Your income is taxed
based on Malaysia’s progressive tax rates.
Step 6: Convert to Monthly PCB
Total annual
tax ÷ 12 = Monthly PCB deduction
💡 Example: If your annual tax is RM1,320 → PCB =
RM110/month
👉 Use the PCB calculator above to get instant results without
manual calculation.
Who Needs to Pay PCB & Taxable Income
Not all employees are required to pay PCB. You become taxable when
your annual income exceeds a certain threshold after applying basic
tax reliefs.
Basic Tax Reliefs
- Individual: RM9,000
- Spouse: RM4,000
- Child: RM2,000 (per child under 18)
Estimated Income Threshold
| Situation |
Monthly Income (RM) |
| Single / No spouse income |
3,111 |
| Married (No child) |
3,111 |
| Married (2 children) |
3,444 |
| Joint Assessment (No child) |
4,000 |
| Joint Assessment (2 children) |
4,333 |
What This Means:
Below these levels → PCB may not apply
Above these levels → PCB will likely be deducted
Types of Income Subject to PCB
Most regular employment income is taxable, including:
- Salary and wages
- Bonus and commissions
- Allowances (transport, housing, etc.)
- Overtime payments
Why PCB Amount is Different Each Month
Your PCB is not fixed and may change depending on your income and
deductions.
Common Reasons:
-
1. Salary Changes: Higher salary → higher PCB
-
2. Bonus or Additional Income: Extra income
increases your taxable amount
-
3. EPF Contribution Rate: 11% (slightly lower
PCB) vs 9% (slightly higher PCB)
-
4. Zakat or Tax Rebates: Reduces your overall tax
-
5. Year-to-Date Adjustments: PCB is adjusted
based on your total income for the year
💡 Example: If you receive a bonus, your PCB for
that month will increase.
PCB Tax Rate Malaysia (LHDN) (2026 Updated)
Malaysia uses a progressive tax system, where higher income is taxed
at higher rates.
| Chargeable Income (RM) |
Tax Rate |
| 0 – 5,000 |
0% |
| 5,001 – 20,000 |
1% |
| 20,001 – 35,000 |
3% |
| 35,001 – 50,000 |
6% |
| 50,001 – 70,000 |
11% |
| 70,001 – 100,000 |
19% |
| 100,001 – 400,000 |
25% |
| 400,001 – 600,000 |
26% |
| 600,001 – 2,000,000 |
28% |
How It Works
You are only taxed on the portion within each range, not your entire
income. (Example: First RM50,000 at lower rates, remainder at higher
rate).
How to Pay PCB
PCB is handled by employers and paid to LHDN.
For Employers: Must deduct PCB and submit payment
before the 15th of the following month.
Payment Methods: PCB can be paid via e-PCB system,
e-Data PCB, or Online banking (FPX).
Important Reminder: Late payment may result in a
10% penalty, and an additional 5% if still unpaid after 60 days.
PCB Penalties & Legal Consequences
Failure to comply with PCB regulations may lead to penalties for
both employers and employees.
For Employers
-
Late Payment: 10% penalty (+ additional 5% after
60 days)
-
Failure to Submit PCB: Fine up to RM20,000 or
imprisonment up to 6 months, or both
-
Late Form E Submission: Fine between RM200 and
RM20,000
For Employees
-
Incorrect Information: May result in penalties
-
Late Tax Filing: 10% increase on tax payable
💡 If PCB is overpaid, LHDN will refund the excess after tax filing.
How PCB is Calculated – Step by Step
PCB (Potongan Cukai Bulanan) is your monthly income tax deduction. Here is exactly how LHDN calculates your PCB amount each month, using RM5,000 salary as a worked example.
- Gross monthly salary = RM 5,000.00
- EPF deduction (11%) = RM 550.00
- Monthly income after EPF = RM 4,450.00
- Annualise: RM4,450 × 12 = RM 53,400.00
- Minus individual relief: RM53,400 − RM9,000 = RM 44,400.00
- Apply tax brackets:
- First RM5,000 at 0% = RM 0
- Next RM15,000 at 1% = RM 150
- Next RM15,000 at 3% = RM 450
- Remaining RM9,400 at 6% = RM 564
- Total annual tax = RM 1,164.00
- Monthly PCB = RM1,164 ÷ 12 = RM 97.00
