What is PCB in Malaysia?

PCB stands for Potongan Cukai Bulanan, also known as Monthly Tax Deduction (MTD). It is a system used in Malaysia where income tax is deducted automatically from your salary every month.

Why does PCB exist?

PCB was introduced by LHDN (Inland Revenue Board of Malaysia) to make tax payments easier and more consistent. Instead of paying tax once a year, employees pay gradually every month.

• Reduce year-end tax burden
• Ensure tax compliance
• Spread tax payment across 12 months

How PCB works

PCB is calculated based on your estimated annual income. Your employer deducts a portion of your salary every month and submits it to LHDN.

At the end of the year:

• If you overpay → you get tax refund
• If you underpay → you pay the difference

What income is included?

• Monthly salary
• Allowances
• Bonuses
• Benefits in cash

Is PCB the same as EPF or SOCSO?

No. PCB is income tax, while EPF is retirement savings and SOCSO is social protection.

• EPF → Retirement savings
• SOCSO → Work injury protection
• EIS → Job loss protection
• PCB → Income tax

Minimum salary subject to PCB

In Malaysia, employees earning above the taxable threshold (around RM37,000 annual income) are generally subject to PCB deductions.

Related Calculator

• Try PCB Calculator
• Salary Calculator