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Contributions to SOCSO

SOCSO contribution rates for employee and employer

Nicholas avatar
Written by Nicholas
Updated over 2 months ago

The maximum eligible monthly salary for SOCSO contribution will be from RM5,000 to RM6,000 per month.

For better clarity, do refer to the SOCSO Contribution Rate table.

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Who is eligible for SOCSO deductions and contributions?

1. Malaysian / PR (below 60 years old)

  • Employee: 1.75%

  • Employer: 0.5%

2. Malaysian / PR (above 60 years old) and Foreign Employees

  • Employee: 0%

  • Employer: 1.25%

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Types of Income subjected to SOCSO contribution

  • Basic Salary

  • Commissions and Service Charges

  • Annual Leave Pay

  • Additional Work Days on Holidays and Overtime

  • Types of Allowance: Incentive, Meal, Housing, Cost of Living Allowance (COLA), Shift and Others.


Types of payments that are not liable for SOCSO contribution

  • Mileage Claims

  • Traveling Allowance

  • Gratuity Payment for dismissal or retrenchment

  • Annual Bonus


Refund of Contributions

In the event there is an error in contribution payments or overpay, you may claim a refund by submitting claims document to SOCSO office. Do refer to the checklist and ensure that the required documents are completed:

  • Checklist

  • Erroneous contribution payment schedule (PKSK50A)

  • Application contribution refund report

  • Application for refund of contribution (PKSK50)

For more details on SOCSO contributions overview, you can head to PERKESO's website.

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** Effective 1 October 2024, PERKESO will enforce a new wage ceiling for contributions from RM5,000 to RM6,000 per month. The contribution amount that apply to employees with salaries exceeding RM5,000 per month is stated in the Third Schedule, Act 4 and the Second Schedule, Act 800.

For employees with salaries exceeding RM6,000 per month, the contribution amount is subject to the wage ceiling of RM6,000. Accordingly, the contribution payment for the month of October 2024 and the subsequent months shall be made by the employer according to the new wage ceiling.

Here's a reference from the official PERKESO website.

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