Basic salary
The fixed contractual pay before variable earnings, employee deductions and most one-off adjustments.
Understand basic salary in contextUnderstand Salary and Income Terms Used in Payroll and Tax
This glossary defines the salary, payroll, tax and compensation terms used in the calculators. Each definition links to the calculation or decision where the term matters.
Attach every term to the right calculation layer
Gross pay, taxable income, employer cost and banked cash are not interchangeable. Use the definition, period and source together before carrying a figure into a calculator.
How to use this glossary
Start with the unfamiliar term. Read its one-sentence meaning, then open the linked guide when the amount affects a payslip, tax return or financial decision. The income guide library explains the records and limitations behind each term, while the calculator library applies those terms to an editable scenario.
Keep terms attached to their calculation layer. Gross income, taxable income, payroll withholding, employer cost and banked cash can all describe different amounts from the same job. A clear label, period and source prevents one figure from being reused as if it answered every question.
Pay and payroll
Gross pay
Total earnings for the wage period before employee deductions are subtracted.
Understand gross pay in contextNet pay
Gross earnings minus employee deductions. This is the payslip figure that should match the bank credit.
Understand net pay in contextTake-home pay
The spendable employment cash remaining after payroll deductions. It is commonly used as another name for net pay.
Understand take-home pay in contextStatutory deductions
retirement plan
Employees Provident Fund retirement contributions with separate employee and employer shares.
Understand retirement plan in contextsocial insurance
Social security contributions administered by the relevant social insurance authority under the applicable employee and employer category.
Understand social insurance in contextunemployment insurance
Employment Insurance System contributions for eligible employment-loss protection and related support.
Understand unemployment insurance in contextoptional accident coverage
the relevant social insurance authority's non-employment injury scheme, shown separately because participation and employee treatment can differ.
Understand optional accident coverage in contextIncome tax
payroll tax withholding
Potongan Cukai Bulanan, the monthly income-tax amount calculated through payroll using prescribed information and rules.
Understand payroll tax withholding in contextChargeable income
The amount to which resident tax bands are applied after the relevant tax adjustments.
Understand chargeable income in contextMarginal tax rate
The rate applied to the next chargeable-income slice, not one rate applied to every dollar.
Understand marginal tax rate in contextTax relief
An eligible amount that reduces chargeable income before the tax-rate calculation.
Understand tax relief in contextIncome and compensation
Employer cost
Salary plus employer-funded contributions and benefits. It is broader than employee take-home pay.
Understand employer cost in contextTotal compensation
The combined annual value of salary, employer contributions, expected variable pay and relevant benefits.
Understand total compensation in contextBillable hours
Working hours that can be charged to a client after non-billable administration, selling and collection time are excluded.
Understand billable hours in contextIncome concentration
The share of total income supplied by the largest source, customer or dependency.
Understand income concentration in contextIncome sources and cash flow
Income source
The work, business activity, asset, transfer or other event that creates an amount, separate from the account receiving it.
Understand income source in contextCash flow
Money that actually enters or leaves during a period, including timing differences that may not equal income or profit.
Understand cash flow in contextProfit
Revenue less the costs included in a stated calculation boundary. Profit does not automatically equal available bank cash.
Understand profit in contextOwner draw
An owner transfer recorded under the rules for the business form. It is not automatically salary or a business expense.
Understand owner draw in contextApply the definitions
Use the calculator library when you need a number and the guide library when you need the rules, records and limitations behind it.