Should an employee choose to remain at 11% contribution rate, they’ll need to fill up
EPF contribution should be paid by the 15th of the month for the salary issued for the previous month by both employee and employer.
A late payment charge or a dividend will be imposed if the EPF contribution is not paid on time.
The Social Security Organization (SOCSO) or otherwise known as “Pertubuhan Keselamatan Sosial – PERKESO” is a government agency formed in 1971 under the jurisdiction of the Ministry of Human Resource (MHR) in Malaysia.
The protection is in terms of cash and benefits for employees deemed unable to work for a period of time due to workplace injuries, emergencies, occupational sickness and death.
There are 2 schemes that are governed under the
Any medical treatment as well as follow up treatments due to work related injuries will be covered fully by SOCSO.
Monetary payments that are subject to SOCSO contribution are:
*The contribution rates stated in this table are not applicable to new employees who are 55 years old and above who have no prior contribution. They are covered under the Employment Injury Scheme only.
Employees who are 60 years old and above do not need to contribute to the employee’s share to SOCSO.
The contribution amount should be calculated based on the contribution rate as stated in the Rate of Contribution table on the SOCSO website.
The monthly contribution is capped at a monthly salary of RM4,000.
The monthly payment of SOCSO contribution consisting of both employees’ and employer’s share should be paid by the 15th of the month for the salary issued for the previous month.
A late payment interest rate of 6% per year will be charged for each day of contribution not paid.
A late payment interest rate of 6% per year is imposed for each day such contribution is not paid on time.
According to SOCSO, auto deduct contributions by employers may be made from these channels:
It is an insurance that protects employees aged 18 to 60 who have lost their employment except in the case of voluntary resignation, expiry of the contract, unconditional termination of the contract, completion of a project specified in a contract, retirement, and dismissal due to misconduct.
EIS is also governed under the
EIS intends to help employees who lost their jobs until they are able to secure a new position.
The contributions are collected in a fund in order to provide financial assistance to retrenched employees.
EIS is a scheme that specifically assists retrenched employees until they land another opportunity.
The temporary financial assistance is given to unemployed people for up to six (6) months.
You only need to register your employees once as SOCSO members and they are automatically entitled to EIS.
Since EIS is under the same roof of SOCSO, employers are not required to register as members separately.
As long as the employer has registered its SOCSO profile, the EIS profile will be automatically created.
Similar to SOCSO, the contribution amount should be calculated based on the rate as stated in the
The EIS contribution for employees’ and employer’s share is paid together with SOCSO contribution.
EIS contribution can be paid through the same channels as the SOCSO contribution.
Managing payrolls and contributions for EPF, SOCSO, and EIS for your employees can be a hassle as your business grows.
A payroll service provider that takes care of your employees’ registration with EPF, SOCSO, EIS, salary payments, payroll taxes, and also the mandatory contributions is recommended.