What is PCB (Potongan Cukai Berjadual)?

PCB stands for Potongan Cukai Berjadual (Monthly Tax Deduction / MTD). It is the monthly income tax instalment deducted from your salary by your employer and remitted directly to LHDN. It is a prepayment of your annual income tax spread over 12 months.

How is PCB calculated in Malaysia?

PCB is calculated using the formula method: (Monthly salary × 12) minus EPF contributions and declared reliefs gives chargeable income. Progressive tax rates are applied, rebates subtracted, and the result divided by 12 to give the monthly PCB amount.

What is Form TP1 and how does it reduce PCB?

Form TP1 allows employees to declare additional tax reliefs to their employer — including life insurance, medical expenses, education fees, spouse relief, and child relief. These reduce the chargeable income used in the PCB calculation, lowering your monthly deduction.

Can Zakat reduce my PCB?

Yes. Zakat paid to an official State Islamic Religious Council is a ringgit-for-ringgit rebate against your tax payable — more powerful than a relief. RM1 of Zakat reduces your annual tax bill by RM1. Declare monthly Zakat to your employer for immediate PCB reduction.

YA 2024 · Formula Method · TP1 & Zakat Supported

PCB Calculator Malaysia

Estimate your monthly Potongan Cukai Berjadual (MTD) deduction. Enter your salary, marital status, TP1 declarations, and Zakat — for both resident and non-resident employees.

Estimate only. PCB is calculated using the formula method with YA 2024 rates. Actual deductions depend on your employer's payroll system, TP1 declarations on file, and any mid-year income changes. Verify with your HR or payslip.

Employment Details

Monthly Gross Salary

Before any deductions (EPF, PCB)

Tax Residency

Marital Status

Children under 18(RM2,000 ea.)

Children 18+, studying(RM8,000 ea.)

TP1 Declarations (optional)

EPF Employee Rateleave blank for default 11%

Life Insurance / Takaful (annual)max RM3,000

Medical & Dental (annual)max RM10,000

Education Fees — self (annual)max RM7,000

Monthly Zakat Payment1-for-1 PCB rebate

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Enter your monthly salary and tap Calculate PCB to see your estimated monthly tax deduction.

How PCB Is Calculated

PCB (Potongan Cukai Berjadual), also known as Monthly Tax Deduction (MTD), is the income tax instalment your employer deducts each month and pays directly to LHDN. It is computed by projecting your annual tax liability and dividing it into 12 equal payments. The formula method — used by this calculator and most modern payroll software — gives a more precise result than the older schedule tables.

Annualise Income

Multiply monthly gross salary by 12 to get projected annual income.

Deduct EPF & Reliefs

Subtract EPF contributions (11%) plus all declared reliefs (TP1 form).

Apply Tax Brackets

Apply Malaysia's progressive tax rates to the chargeable income. Subtract rebates and Zakat.

Divide by 12

The resulting annual tax divided by 12 is your monthly PCB deduction.

PCB vs Income Tax — What's the Difference?

Both refer to the same underlying tax. PCB is the monthly collection mechanism; income tax is the annual liability.

Aspect	PCB / MTD	Annual Income Tax
Frequency	Monthly (each pay cycle)	Once a year (by 30 April)
Who pays LHDN?	Employer on your behalf	You directly (or via CP500)
Basis	Projected annual tax ÷ 12	Actual annual chargeable income
Reliefs used	TP1 declarations + EPF	All reliefs + receipts in Form BE
Reconciliation	At year-end via Form BE	Refund or top-up after filing
Zakat	Direct PCB rebate (monthly)	Direct tax rebate in Form BE

Reducing Your PCB with TP1 & Zakat

Most employees pay more PCB than necessary because they never submit Form TP1 to their HR. Here is what you can declare.

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Form TP1 — Additional Reliefs

Life insurance / takaful (max RM3,000)
Medical & dental (max RM10,000)
Education fees — self (max RM7,000)
Spouse relief RM4,000 (if non-working)
Child relief RM2,000 / RM8,000 each
Private retirement scheme (PRS)
Sports equipment, gym fees, etc.

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Zakat — Direct PCB Rebate

Must be paid to an official State Islamic Religious Council (MAJLIS)
Declare monthly Zakat amount to your employer
RM1 Zakat = RM1 PCB reduction (more powerful than a relief)
Applies to income Zakat (Zakat Pendapatan)
Supported by LHDN circular — ask your HR for the TP declaration form
Reduces PCB dollar-for-dollar, up to the PCB amount due

Frequently Asked Questions

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Disclaimer: This calculator and article are provided for educational and informational purposes only. Results are estimates and should not be considered financial, tax, legal, or investment advice. Please consult the relevant authority, financial institution, or qualified professional before making financial decisions.