EIS & SOCSO Contribution: A Guide for Employers in Malaysia

Like EPF contributions and MTD, Employers are also obliged to make deductions for SOCSO and EIS contributions on behalf of employees, in addition to making a small contribution to the employees’ accounts out of employers’ pocket.

SOCSO and EIS are different contributions but they are made to the same organisation, PERKESO.

Unlike EPF, there isn’t any specific rate for deduction for SOCSO. Rather, employers are to refer to a table published by PERKESO (the table can be found at https://www.perkeso.gov.my/en/rate-of-contribution.html).

For EIS, rate is 0.2% of employees’ wages from employees and employers each.

Step 1: EIS & SOCSO Contributions

The first step would be to calculate wages applicable to SOCSO and EIS deduction. For SOCSO and EIS deductions, wages are said to be monthly pay, excluding the following:

  • bonuses;
  • reimbursements;
  • gratuity is a payment for termination; and
  • contributions made to provident funds or pensions (such as EPF).

Once the amount is derived, simply visit the mentioned table and find the bracket that the wage falls in between. You will find both the employer’s and the employee’s contribution applicable amount.

Step 2: Remittance

Like EPF and MTD, employers to remit contributions by the 15th day in the month following the wage period.

They can be made via any of the following channels:

  • SOCSO’s ASSIST Portal (Payment via FPX)
  • SOCSO counters (by cheque, money, and postal order only)
  • Bank counters:
    – Maybank Berhad
    – RHB Bank Berhad
    – Public Bank Berhad (starting 1 March 2018)
  • Internet Banking

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