SYNCO | PCB Guide

PCB, explained —
without the guesswork

Potongan Cukai Bulanan (Monthly Tax Deduction) is the tax every Malaysian employer must withhold from staff salaries and remit to LHDN. Here's what it actually involves — and where to get it calculated correctly.

Calculate PCB on emsy →Read the basics

The basics

What every employer needs to know

PCB applies to almost every employee earning above the tax-exempt threshold — it's deducted from each month's salary, not paid as a lump sum at year end.

The amount depends on monthly income, marital status, number of children, and any reliefs the employee has declared (via Form TP1/TP3) — it isn't a flat percentage.

Employers must remit PCB to LHDN by the 15th of the following month, and file Form E / CP8D annually summarising every employee's deductions.

Getting it wrong is the employer's liability, not just the employee's — under-deduction can mean the company owes the shortfall plus penalties.

This page is a general explainer, not tax advice, and doesn't compute PCB itself — LHDN's formula changes with each Budget and depends on individual reliefs. For an accurate, always-current calculation, use the tool below rather than a generic online calculator.

Where to actually calculate it

emsy calculates PCB automatically — every payroll run

Always current

Built and maintained by EMSY Sdn. Bhd. specifically for Malaysian payroll — updated when LHDN's rules change, not left to go stale.

Part of the full run

PCB, EPF, SOCSO, and EIS are all calculated together in one payroll run, then filed straight into LHDN's Hub.

Free to start

Run payroll for up to 5 staff at no cost, or hand the whole thing to Synco on the Managed plan.

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