Last updated: February 2026
PCB Calculation Malaysia: The Complete Guide (2026)
The complete guide to MTD/PCB compliance, rates, and calculations for Malaysian SMEs.
LHDN Compliant Calculation Method
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
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What HavaHR brings together
Payroll, people operations, statutory calculations and HR documents in one workflow built for Malaysian SMEs.
Automated Calculation in HavaHR
Consideration of Previous Employment Data
TP1 Form Form Updates
Bonus PCB Calculation
CP38 Deduction Handling
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 |
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