A Malaysian woman was left shocked after discovering that more than RM500 was deducted from her friend’s monthly salary for tax.
Taking to Threads, she questioned whether it made sense for RM520.50 in Monthly Tax Deduction to be taken from a RM1,700 salary.
Is it logical for MTD (Monthly Tax Deduction / PCB) per month to be RM520.50 when the salary is only RM1,700?” she wrote.
She later clarified that the payslip belonged to her friend, who works as a dental surgery assistant at a clinic in Bahau, Negeri Sembilan.
RM520 deducted from RM1,734 total earnings
According to the payslip shared, the employee’s total earnings for January 2026 amounted to RM1,734.85, including overtime pay.
However, total deductions came up to RM719.75. Out of that amount, RM520.50 was listed under Monthly Tax Deduction.
After EPF, SOCSO and EIS deductions, her take home pay was only RM1,015.10.
The woman added that her friend had been working at the clinic since September 2025 and claimed that more than RM500 had been deducted monthly since then. However, she only informed her about it recently, which was why she decided to ask online.
Netizens question how RM1.7K salary can be taxed so heavily
Many netizens were quick to point out that a RM1,700 monthly salary should not even fall into the taxable income bracket.
“RM1,700 does not even reach the tax bracket,” one user commented.
Another wrote, “Usually when tax hits RM500, the salary is around RM6,000 or RM7,000.”
Several users highlighted that an annual income of RM20,400 is below the estimated taxable threshold of RM37,333.
“A RM1,700 monthly salary equals RM20,400 a year. That is below the tax threshold. MTD should be zero,” one netizen explained.
Possible payroll mistake: Marked as non resident?
Some commenters suspected that the employee may have been wrongly classified as a non resident in the payroll system.
Under Malaysian tax rules, non residents are taxed at a flat rate of 30 percent.
One netizen even did the calculation.
“RM1,734.85 multiplied by 30 percent equals RM520.46. That matches the MTD deducted.”
Others suggested that HR may have accidentally selected the wrong tax status setting, causing the payroll system to automatically calculate the higher rate.
Advised to check with LHDN
Netizens advised the woman’s friend to verify the deductions directly with LHDN.
Some recommended checking the MyTax portal to confirm whether the deducted amount was properly recorded under her tax file number.
Others suggested calling LHDN at 03 8911 1000 or lodging a complaint if the employer failed to provide a clear explanation.
“If there is no record in LHDN’s system, that is a red flag,” one commenter warned.
At this point, it remains unclear whether the deduction was simply a payroll error or something more serious.
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