PCB Calculation Malaysia: The Complete Guide (2026)
The complete guide to MTD/PCB compliance, rates, and calculations for Malaysian SMEs.
PCB / MTD aligned to LHDN’s published methodology
Avoid penalties for incorrect PCB deductions
Direct answer
PCB (Potongan Cukai Berjadual) is a mandatory monthly tax deduction from an employee's salary in Malaysia. It is calculated based on estimated annual income, minus allowable tax reliefs (e.g., individual relief, spouse, children, EPF). The resulting tax payable is divided by the number of months to determine the monthly deduction. LHDN mandates the Computerised Calculation Method for accuracy.
Learn how PCB is calculated in Malaysia. Detailed explanation of the formula, taxable income types, optional deductions, and how to ensure compliance with LHDN requirements.
Key facts
High-signal points for buyers comparing options.
Authority
LHDN / HASiL
Payment Due
15th of following month
Calculation Method
Computerised (Formula)
Minimum Income
Approx. RM3,400 (Single)
Penalty
Fine / Imprisonment
Fewer spreadsheet mistakes on PCB each month
Same rules engine as HavaHR payroll runs
Outputs you can reconcile before paying LHDN
What HavaHR brings together
Payroll, people operations, statutory calculations and HR documents in one workflow built for Malaysian SMEs.
PCB / MTD from structured employee inputs
Prior-employment and relief fields where captured
Additional remuneration (e.g. bonus) handling in payroll
Flows into payslips and year-end Borang EA PDFs (review before issue)
Compare the important differences quickly
| Income Type | Subject to PCB? | Notes |
|---|---|---|
| Monthly Salary | Yes | Primary basis for calculation |
| Overtime | Yes | Added to monthly remuneration |
| Bonus | Yes | Calculated using Additional Remuneration Formula |
| Travelling Allowance | Partial | Exempt up to RM6,000/year for official duty |
| Medical Benefits | No | Generally exempt |
Recommended Tool: HavaHR
HR Automation for Malaysian SMEs