Freelance Rate Calculator Malaysia
To take home RM5,000 a month as a freelancer after RM500 of expenses, 11% EPF and income tax, charge at least RM 55.04 an hour (RM 440.36 a day) at 30 billable hours a week with 6 weeks off. That is RM 75,961.54 of revenue a year, including RM 2,265.77 of tax. Enter your own numbers below.
Your rate
Minimum hourly rate
RM 440.36 a day · RM 6,330.13 a month
| Take-home a year | RM 60,000.00 |
|---|---|
| Business expenses | + RM 6,000.00 |
| EPF (i-Saraan / voluntary) | + RM 7,695.77 |
| Income tax | + RM 2,265.77 |
| Revenue needed a year | RM 75,961.54 |
| Billing a month | RM 6,330.13 |
| Billable hours a year | 1,380 |
| Hourly rate | RM 55.04 |
| Day rate (8 hours) | RM 440.36 |
Tax at YA2026 resident rates with RM9,000 self relief and EPF relief up to RM4,000.
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Freelance rate by take-home target
RM500 a month of expenses, 11% EPF, 30 billable hours a week, 6 weeks off.
| Take-home a month | Billing a month | Tax a year | Hourly rate | Day rate |
|---|---|---|---|---|
| RM 2,000.00 | RM 2,747.19 | RM 0.00 | RM 23.89 | RM 191.11 |
| RM 3,000.00 | RM 3,870.79 | RM 0.00 | RM 33.66 | RM 269.27 |
| RM 4,000.00 | RM 5,090.36 | RM 1,025.06 | RM 44.26 | RM 354.11 |
| RM 5,000.00 | RM 6,330.13 | RM 2,265.77 | RM 55.04 | RM 440.36 |
| RM 6,000.00 | RM 7,634.52 | RM 4,196.71 | RM 66.39 | RM 531.10 |
| RM 8,000.00 | RM 10,545.57 | RM 11,286.72 | RM 91.70 | RM 733.61 |
| RM 10,000.00 | RM 13,670.57 | RM 20,661.72 | RM 118.87 | RM 951.00 |
How the rate is worked out
- Profit needed so that profit − EPF − SOCSO − tax = take-home × 12.
- Tax on chargeable income = profit − RM9,000 − EPF (up to RM4,000) − other reliefs, at resident rates, less the RM400 rebate up to RM35,000.
- Revenue = profit + business expenses × 12.
- Billable hours = hours a week × (52 − weeks off).
- Hourly rate = revenue ÷ billable hours; day rate = hourly × 8.
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How billable hours change the rate (RM5,000 take-home)
| Hours a week | Hours a year | Hourly rate | Day rate |
|---|---|---|---|
| 20 | 920 | RM 82.57 | RM 660.54 |
| 25 | 1,150 | RM 66.05 | RM 528.43 |
| 30 | 1,380 | RM 55.04 | RM 440.36 |
| 35 | 1,610 | RM 47.18 | RM 377.45 |
| 40 | 1,840 | RM 41.28 | RM 330.27 |
Tax and savings for freelancers
- Form B: freelance and other business income is declared on Form B by 30 June; keep receipts for expenses.
- EPF i-Saraan: voluntary savings for the self-employed; EPF relief is up to RM4,000 a year.
- SOCSO SKSPS: required for self-employed workers in covered sectors.
- Budget 2027: proposes RM12,000 self relief and lower rates from YA2027; compare them in the income tax calculator.
- SST: only if your taxable services pass the registration threshold.
Sources
- PwC Malaysia: Personal income tax rates and reliefs
- KWSP: i-Saraan
- PERKESO: Self-Employment Social Security Scheme
Disclaimer: An estimate for pricing. Your tax depends on your reliefs and allowable expenses; check with LHDN or a tax agent.
Frequently asked questions
How much should I charge as a freelancer in Malaysia?
Work back from the take-home you need. For RM5,000 a month after RM500 of monthly expenses, 11% EPF and tax, at 30 billable hours a week with 6 weeks off, charge at least RM 55.04 an hour or RM 440.36 a day, billing RM 6,330.13 a month.
How many billable hours does a freelancer have?
Fewer than you think: admin, sales and unpaid revisions take time. 30 billable hours a week for 46 weeks is 1,380 hours a year, against about 2,000 working hours for an employee.
How is freelance income taxed in Malaysia?
As business income at resident rates (0% to 30%), declared on Form B by 30 June. Deduct business expenses, then reliefs: RM9,000 for yourself and up to RM4,000 for EPF. In the example the tax is RM 2,265.77 a year; with chargeable income of RM35,000 or less a RM400 rebate applies.
Should freelancers contribute to EPF?
It is voluntary but worth it. Self-employed members can save through i-Saraan, and EPF savings give up to RM4,000 tax relief. The example sets aside 11% of profit, RM 7,695.77 a year.
Do freelancers need SOCSO?
Self-employed workers in sectors covered by PERKESO's Self-Employment Social Security Scheme (SKSPS) must contribute; others may join. Enter your plan's monthly contribution in the calculator.
What expenses should I include?
Everything the business pays for: laptop and software, internet and phone, coworking, transport, accounting, insurance, and marketplace or payment fees. Spread one-off equipment over its useful life.
What is a lower target worth an hour?
RM3,000 a month take-home with RM300 expenses, no EPF and 25 billable hours a week over 48 weeks needs RM 39,600.00 a year, or RM 33.00 an hour. The rebate removes the tax at that income.
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