Basic, gross, and net salary: Malaysia's Public Service Department clarifies what these terms mean

The Department has shared these clarifications following a number of queries around what 'basic salary', 'gross salary', and 'net salary' each mean, noting that many civil servants remain unsure.

Malaysia's Public Service Department (Jabatan Perkhidmatan Awam) has shared some quick clarifications regarding key salary terms to know. The Department said this comes as it has received a number of queries around the terms, and that many civil servants remain unclear about the meaning of each term.

The clarification is as follows:

Key income/salary terms:

• Basic salary – Represents only your basic salary received.
• Gross salary – Represents basic salary + any allowance received. 
  • Gross income rate: This, on the other hand, represents the basic salary + any allowance received, before any deductions or contributions are made.
• Net salary – Represents basic salary + any allowance received, and any deductions made.
  • Net income rate:
    • The amount of salary that goes into your bank account every month.
    • The amount of salary that has been deducted for EPF or SOCSO contributions as well as other related amounts.
    • The amount of net salary that includes any allowances received.

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Photo: Jabatan Perkhidmatan Awam