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.
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.
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
Most regular employment income is taxable, including:
- Salary and wages
- Bonus and commissions
- Allowances (transport, housing, etc.)
- Overtime payments
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.
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).
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.
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.
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Official LHDN PCB Calculator
Use the official LHDN PCB calculator for the most accurate monthly tax deduction (PCB) reference.
Go to LHDN PCB Calculator
