01
What is PERKESO / SOCSO?
PERKESO, commonly referred to as SOCSO in English, is Malaysia’s social security organisation. For employers, it provides statutory employee protection for employment injury, occupational disease, invalidity and employment loss situations, funded through monthly contributions.
KWSP/EPF is mainly retirement savings. PERKESO/SOCSO is employee risk protection. EIS/SIP supports eligible employees who lose employment and need temporary support or re-employment assistance.
02
Main schemes and contribution categories
| Category | Typical employee group | Protection | Contribution |
|---|---|---|---|
| First Category | Generally employees below age 60 | Employment Injury Scheme + Invalidity Scheme | Employer and employee contribute |
| Second Category | Employees aged 60 and above, and certain employees first covered after 55 | Employment Injury Scheme | Generally employer contribution only |
| EIS / SIP | Eligible private sector employees | Employment loss, temporary allowance and re-employment support | Employer and employee contribute |
The amount is not estimated freely using a rough percentage. Payroll should follow the latest official PERKESO contribution table based on wage brackets.
03
How the RM6,000 wage ceiling works
PERKESO’s official FAQ states that the wage ceiling under Act 4 and Act 800 increased from RM5,000 to RM6,000 with effect from 1 October 2024. If an employee’s monthly wage exceeds RM6,000, contribution is calculated using the maximum wage bracket.
Contribution depends on category and official wage bracket.
The official FAQ states the wage ceiling also affects foreign workers, but foreign workers are not covered under Act 800 / EIS.
04
Payment deadline and channels
PERKESO’s payment page states that contributions payable for any month must be paid no later than the 15th day of the following month. Late payment interest may apply; the official page states 6% per annum for each day the contribution is not paid within the stipulated period.
Employers can use the ASSIST Portal to manage registration, employee records and contribution payment.
Useful for employers who want a more automated payment arrangement.
Certain bank channels may be used, subject to PERKESO and bank availability.
Review SOCSO / EIS shortly after payroll is finalised instead of waiting until just before the 15th.
05
Common employer mistakes
- Thinking KWSP alone is enough.Once employees are hired, SOCSO / EIS usually needs to be handled together with payroll.
- Using the old RM5,000 ceiling.The ceiling has increased to RM6,000 from 1 October 2024, so payroll settings should be reviewed.
- Not distinguishing local and foreign workers.Foreign workers are covered differently and are not covered under Act 800 / EIS.
- Missing the 15th deadline.Late payment interest may apply and employer records may be affected.
- Not keeping payroll support documents.Keep payroll reports, employee records, contribution acknowledgements and payment proof.
06
Official sources and next step
If your Sdn. Bhd. has started hiring employees, you may need to coordinate KWSP, PERKESO/SOCSO, EIS, LHDN employer tax file / PCB and payroll processes together.