Statutory · Updated July 2026
SOCSO (PERKESO) & EIS Contributions Explained
SOCSO (PERKESO) contributions for employees under 60 fall under the First Category: approximately 1.75% of monthly wages from the employer and 0.5% from the employee, capped at a wage ceiling of RM6,000 per month. Employees aged 60 and above are under the Second Category (Employment Injury only), with the employer paying about 1.25% and the employee nothing. EIS (SIP) adds 0.2% from the employer and 0.2% from the employee on the same RM6,000 ceiling, and all contributions are due by the 15th of the following month.
Key facts
- SOCSO First Category (under 60): employer approximately 1.75%, employee 0.5% of monthly wages
- SOCSO Second Category (60 and above): employer approximately 1.25%, employee nil — Employment Injury Scheme only
- Wage ceiling: RM6,000 per month (since 1 October 2024) for both SOCSO and EIS
- EIS (SIP): 0.2% employer + 0.2% employee
- Exact ringgit amounts come from the PERKESO contribution tables, not straight percentages
- Payment deadline: the 15th of the following month
What SOCSO covers: two schemes
SOCSO (Social Security Organisation, known in Malay as PERKESO) runs two social insurance schemes under the Employees' Social Security Act 1969. The Employment Injury Scheme covers accidents arising out of or in the course of work, including commuting accidents and occupational diseases, and pays medical benefits, temporary and permanent disablement benefits and dependants' benefits. The Invalidity Scheme covers invalidity or death from any cause outside work, providing an invalidity pension or survivors' pension.
Registration is mandatory for virtually all employees who are Malaysian citizens or permanent residents, regardless of salary. Foreign workers with valid documents are also covered, under the Employment Injury Scheme.
First Category vs Second Category
Which category an employee falls into determines which schemes they are covered by and who pays.
| Category | Who | Schemes covered | Employer share | Employee share |
|---|---|---|---|---|
| First Category | Employees under age 60 | Employment Injury + Invalidity | ~1.75% | 0.5% |
| Second Category | Employees aged 60 and above (and certain others, e.g. new entrants aged 55+ with no prior contributions) | Employment Injury only | ~1.25% | Nil |
The RM6,000 wage ceiling
Since 1 October 2024, SOCSO and EIS contributions are calculated on monthly wages up to a ceiling of RM6,000 (raised from RM5,000). An employee earning RM10,000 per month contributes as if they earned RM6,000, so the maximum monthly SOCSO deduction for the employee is capped at RM29.75 under the First Category, with the employer paying up to RM104.15.
Wages for SOCSO purposes include basic salary, overtime pay, commission, service charges and payments for leave. They exclude annual bonuses, gratuity and reimbursive travel allowances — note this is broadly the opposite of EPF treatment for overtime and bonus.
EIS (SIP): the Employment Insurance System
The Employment Insurance System (EIS, or Sistem Insurans Pekerjaan, SIP), also administered by PERKESO, provides temporary income replacement and re-employment assistance for workers who lose their jobs, including job-search allowances, training and placement support.
- Contribution rate: 0.2% of monthly wages from the employer and 0.2% from the employee
- Same RM6,000 wage ceiling as SOCSO, so the maximum is RM11.90 each per month
- Amounts are taken from the EIS contribution schedule by wage band
Who is exempt
- EIS does not apply to employees aged 57 and above who have never contributed before, or to employees aged 60 and above
- EIS does not cover civil servants, domestic workers or the self-employed
- SOCSO Invalidity Scheme coverage stops at 60 — employees 60 and above move to the Second Category (Employment Injury only) with no employee deduction
- Business owners and sole proprietors are not employees, but certain groups (e.g. the self-employed in specified sectors) have separate PERKESO self-employment schemes
Deadlines and payment
SOCSO and EIS contributions for a wage month must be paid to PERKESO by the 15th of the following month, the same deadline as EPF. Employers register and submit monthly contributions through the PERKESO ASSIST portal or approved payroll software. Late payment attracts interest, and failure to register or contribute is an offence that can also leave the employer liable for benefits that would have been payable.
Worked example: RM3,000 monthly salary
SOCSO and EIS for an employee under 60 earning RM3,000 per month
Category: First Category (Employment Injury + Invalidity)
Employer SOCSO = approximately 1.75% x RM3,000 = RM52.50 (about RM51.65 per the contribution table)
Employee SOCSO = approximately 0.5% x RM3,000 = RM15.00 (about RM14.75 per the contribution table)
Employer EIS = 0.2% x RM3,000 = RM6.00 (about RM5.90 per the table)
Employee EIS = 0.2% x RM3,000 = RM6.00 (about RM5.90 per the table)
Total employee deduction (SOCSO + EIS) = roughly RM20.65
Total employer cost (SOCSO + EIS) = roughly RM57.55
Automating this with an HR system
An HR system like staffs.id determines each staff member's SOCSO category from their age, applies the RM6,000 ceiling, and reads the employee and employer amounts from the PERKESO and EIS contribution schedules automatically — including the different wage definitions for SOCSO versus EPF, where overtime counts for SOCSO but not EPF.
Since staffs.id computes SOCSO and EIS in the same run as EPF and PCB for full-timers and hourly part-timers alike, monthly submissions to PERKESO reconcile with payslips without manual table lookups, helping employers meet the 15th-of-the-month deadline consistently.
Frequently asked questions
How much is the SOCSO contribution in Malaysia?
For employees under 60 (First Category), the employer pays approximately 1.75% and the employee 0.5% of monthly wages, capped at a RM6,000 wage ceiling. Exact amounts come from the PERKESO contribution tables.
What is the difference between SOCSO First Category and Second Category?
First Category covers employees under 60 for both the Employment Injury and Invalidity Schemes, with contributions from both employer and employee. Second Category covers employees 60 and above for Employment Injury only, paid entirely by the employer at about 1.25%.
What is the EIS contribution rate?
0.2% of monthly wages from the employer and 0.2% from the employee, on wages up to RM6,000 per month — a maximum of RM11.90 each.
Who is exempt from EIS in Malaysia?
Employees aged 60 and above, employees aged 57 and above with no prior EIS contributions, civil servants, domestic workers and the self-employed are not covered by EIS.
When must employers pay SOCSO and EIS contributions?
By the 15th of the month following the wage month, via the PERKESO ASSIST portal or approved payroll software. Late payment incurs interest.