1 What is PCB?

Monthly Tax Deduction (PCB) is a mechanism used by the Malaysian government to collect income tax gradually through monthly salary deductions. This system ensures taxpayers don't have to pay a large tax amount at once at year end.

2 Who Needs to Pay PCB?

Every employee with annual income exceeding RM34,000 (after EPF contributions) needs to pay PCB. Employers are responsible for making deductions and paying to LHDN.

3 PCB Categories

Category 1 - Single

For individuals who are not married or divorced/widowed.

Category 2 - Married (Spouse Not Working)

For married individuals whose spouse has no income or chooses joint assessment.

Category 3 - Married (Spouse Working)

For married individuals whose spouse has their own income with separate assessment.

4 Statutory Deductions

EPF (KWSP)

Mandatory contribution to the Employees Provident Fund. Standard rate is 11% of salary.

SOCSO (PERKESO)

Contribution to Social Security Organization for worker protection.

EIS (SIP)

Employment Insurance System providing protection against job loss.

5 Tax Relief

Tax relief is the amount that can be deducted from your taxable income. Main relief includes:

Personal relief: RM9,000
Spouse relief: RM4,000
Child relief (under 18): RM2,000 per child
EPF contribution: Up to RM4,000
SOCSO/EIS contribution: Up to RM350 each

Malaysia PCB Guide