1. What is Monthly Salary Calculation in Malaysia?

In Malaysia, monthly salary is typically calculated by multiplying the daily rate by 26 working days. This standard accounts for the average number of working days per month, excluding weekends and public holidays.

2. How Does the Calculator Work?

The calculator uses the standard Malaysia salary formula:

Where:

• Daily Rate — Employee's daily wage in Malaysian Ringgit (MYR)
• 26 — Standard number of working days per month

Explanation: This calculation provides a standardized method to convert daily wages to monthly salary for payroll purposes.

3. Importance of Salary Calculation

Details: Accurate salary calculation ensures proper compensation, compliance with labor laws, and correct payroll processing including EPF, SOCSO, and tax deductions.

4. Using the Calculator

Tips: Enter the daily rate in MYR. The calculator will automatically compute the monthly salary based on 26 working days.

5. Frequently Asked Questions (FAQ)

Q1: Why multiply by 26 days?
A: 26 days is the standard multiplier in Malaysia, accounting for 4 weeks (20 weekdays) plus 6 additional working days.

Q2: Does this include overtime?
A: No, this calculates basic monthly salary only. Overtime should be calculated separately.

Q3: What about months with public holidays?
A: The 26-day standard already accounts for average public holidays. Actual pay may vary slightly month-to-month.

Q4: Is this calculation mandatory?
A: While common, employment contracts may specify different calculation methods. Always refer to contract terms.

Q5: How does this affect EPF contributions?
A: EPF contributions are calculated based on the monthly salary amount, including all fixed allowances.