What Is SOCSO?
What is SOCSO in Malaysia?
SOCSO or PERKESO — Safeguard Your Employees, Secure Your Business
As an HR professional in Malaysia, understanding the Social Security Organisation (SOCSO) is essential. SOCSO safeguards your employees’ well-being by providing a wide range of various benefits and protections.
By complying with Malaysian regulations, you’re not only fulfilling a legal requirement but also providing valuable security for your employees. Remember, a happy and protected workforce is a productive workforce!
So, here’s a quick guide for HR professionals on its functions and how it applies to your employees, ensuring they receive the benefits they deserve!
What is SOCSO?
The Social Security Organisation (SOCSO), also known as PERKESO, is a Malaysian government agency that provides financial aid and medical benefits to employees. SOCSO protects eligible employees in case of workplace accidents, occupational diseases, invalidity, and death.
Types of SOCSO Coverage
SOCSO offers two main insurance schemes:
- Employment Injury Scheme:
- Employment injury scheme provides coverage for workplace accidents and illnesses.
- Invalidity Scheme:
- Invalidity scheme offers financial support in case of employee disability or death due to non-work-related causes.
Employees can be categorized into :
- Employment Injury Scheme and Invalidity Scheme: Covered under both schemes (most comprehensive protection)
- Employment Injury Scheme: Covered under Employment Injury Scheme only
Who is Eligible for SOCSO?
- All Malaysian citizens and permanent residents working under a contract in the private sector are eligible for both schemes.
- Contractual/temporary staff of Federal / State governments and Statutory Bodies.
- The following groups are eligible for the Employment Injury Scheme:
- Foreign workers
- Interns
- Malaysian citizens above 60 years old
- Malaysian citizens above 55 years old who have never been employed in the private sector
Who is Exempted from SOCSO?
- Federal and state government permanent employees.
- Domestic helpers.
- Self-employed individuals.
- Sole proprietors, partners, and their spouses.
- Foreign workers (employers cover them under the Employment Injury Scheme).
Remember: Certain employees may be exempt from SOCSO. It’s important to stay updated on the latest guidelines.
Understanding SOCSO Contributions
SOCSO contributions are based on a tiered structure . Employers are required to refer to the contribution rate tables published by PERKESO that outline contribution rates based on the employee’s monthly wages.
These contributions are shared between the employer and employee, with a portion deducted from the employee’s salary.
Contribution Percentage
The employer contribution amount varies depending on the employee’s earnings and the type of insurance scheme (Employment Injury Scheme or Invalidity Pension Scheme).
Effective September 1st, 2022, PERKESO has increased the wage ceiling for SOCSO contributions from RM4,000 to RM5,000 per month.
For employees earning more than RM4,000 monthly, you’ll need to refer to the updated contribution rates outlined in the Third Schedule of Act 4 and the Second Schedule of Act 800.
For those exceeding RM5,000 monthly, the contribution amount is capped at the new RM5,000 ceiling.
Updated as of March 2024
Rate of Contribution for Employees’ Social Security Act 1969 (Act 4)
NoActual monthly wage of the monthFirst Category (Employment Injury Scheme and Invalidity Scheme)Second Category (Employment Injury Scheme)Employer’sEmployee’sTotal ContributionContribution By Employer Only1Wages up to RM3040 cents10 cents50 cents30 cents2When wages exceed RM30 but not exceed RM5070 cents20 cents90 cents50 cents3When wages exceed RM50 but not exceed RM70RM1.1030 centsRM1.4080 cents4When wages exceed RM70 but not exceed RM100RM1.5040 centsRM1.90RM1.105When wages exceed RM100 but not exceed RM140RM2.1060 centsRM2.70RM1.506When wages exceed RM140 but not exceed RM200RM2.9585 centsRM3.80RM2.107When wages exceed RM200 but not exceed RM300RM4.35RM1.25RM5.60RM3.108When wages exceed RM300 but not exceed RM400/td>RM6.15RM1.75RM7.90RM4.409When wages exceed RM400 but not exceed RM500RM7.85RM2.25RM10.10RM5.6010When wages exceed RM500 but not exceed RM600RM9.65RM2.75RM12.40RM6.9011When wages exceed RM600 but not exceed RM700RM11.35RM3.25RM14.60RM8.1012When wages exceed RM700 but not exceed RM800RM13.15RM3.75RM16.90RM9.4013When wages exceed RM800 but not exceed RM900RM14.85RM4.25RM19.10RM10.6014When wages exceed RM900 but not exceed RM1,000RM16.65RM4.75RM21.40RM11.9015When wages exceed RM1,000 but not exceed RM1,100RM18.35RM5.25RM23.60RM13.1016When wages exceed RM1,100 but not exceed RM1,200RM20.15RM5.75RM25.90RM14.4017When wages exceed RM1,200 but not exceed RM1,300RM21.85RM6.25RM28.10RM15.6018When wages exceed RM1,300 but not exceed RM1,400RM23.65RM6.75RM30.40RM16.9019When wages exceed RM1,400 but not exceed RM1,500RM25.35RM7.25RM32.60RM18.1020When wages exceed RM1,500 but not exceed RM1,600RM27.15RM7.75RM34.90RM19.4021When wages exceed RM1,600 but not exceed RM1,700RM28.85RM8.25RM37.10RM20.6022When wages exceed RM1,700 but not exceed RM1,800RM30.65RM8.75RM39.40RM21.9023When wages exceed RM1,800 but not exceed RM1,900RM32.35RM9.25RM41.60RM23.1024When wages exceed RM1,900 but not exceed RM2,000RM34.15RM9.75RM43.90RM24.4025When wages exceed RM2,000 but not exceed RM2,100RM35.85RM10.25RM46.10RM25.6026When wages exceed RM2,100 but not exceed RM2,200RM37.65RM10.75RM48.40RM26.9027When wages exceed RM2,200 but not exceed RM2,300RM39.35RM11.25RM50.60RM28.1028When wages exceed RM2,300 but not exceed RM2,400RM41.15RM11.75RM52.90RM29.4029When wages exceed RM2,400 but not exceed RM2,500RM42.85RM12.25RM55.10RM30.6030When wages exceed RM2,500 but not exceed RM2,600RM44.65RM12.75RM57.40RM31.9031When wages exceed RM2,600 but not exceed RM2,700RM46.35RM13.25RM59.60RM33.1032When wages exceed RM2,700 but not exceed RM2,800RM48.15RM13.75RM61.90RM34.4033When wages exceed RM2,800 but not exceed RM2,900RM49.85RM14.25RM64.10RM35.6034When wages exceed RM2,900 but not exceed RM3,000RM51.65RM14.75RM66.40RM36.9035When wages exceed RM3,000 but not exceed RM3,100RM53.35RM15.25RM68.60RM38.1036When wages exceed RM3,100 but not exceed RM3,200RM55.15RM15.75RM70.90RM39.4037When wages exceed RM3,200 but not exceed RM3,300RM56.85RM16.25RM73.10RM40.6038When wages exceed RM3,300 but not exceed RM3,400RM58.65RM16.75RM75.40RM41.9039When wages exceed RM3,400 but not exceed RM3,500RM60.35RM17.25RM77.60RM43.1040When wages exceed RM3,500 but not exceed RM3,600RM62.15RM17.75RM79.90RM44.4041When wages exceed RM3,600 but not exceed RM3,700RM63.85RM18.25RM82.10RM45.6042When wages exceed RM3,700 but not exceed RM3,800RM65.65RM18.75RM84.40RM46.9043When wages exceed RM3,800 but not exceed RM3,900RM67.35RM19.25RM86.60RM48.1044When wages exceed RM3,900 but not exceed RM4,000RM69.15RM19.75RM88.90RM49.4045When wages exceed RM4,000 but not exceed RM4,100RM70.85RM20.25RM91.10RM50.6046When wages exceed RM4,100 but not exceed RM4,200RM72.65RM20.75RM93.40RM51.9047When wages exceed RM4,200 but not exceed RM4,300RM74.35RM21.25RM95.60RM53.1048When wages exceed RM4,300 but not exceed RM4,400RM76.15RM21.75RM97.90RM54.4049When wages exceed RM4,400 but not exceed RM4,500RM77.85RM22.25RM100.10RM55.6050When wages exceed RM4,500 but not exceed RM4,600RM79.65RM22.75RM102.40RM56.9051When wages exceed RM4,600 but not exceed RM4,700RM81.35RM23.25RM104.60RM58.1052When wages exceed RM4,700 but not exceed RM4,800RM83.15RM23.75RM106.90RM59.4053When wages exceed RM4,800 but not exceed RM4,900RM84.85RM24.25RM109.10RM60.6054When wages exceed RM4,900 but not exceed RM5,000RM86.65RM24.75RM111.40RM61.9055When wages exceed RM5,000RM86.65RM24.75RM111.40RM61.90
Rate of Contribution Self-Employment Social Security Scheme(Act 789)
No.Insured Monthly EarningContribution Payment Per MonthContribution Payment Per Year1RM1,050RM13.10RM157.202RM1,550RM19.40RM232.803RM2,950RM36.90RM442.804RM3,950RM49.40RM592.80
By understanding SOCSO’s role and ensuring proper registration and contributions, you can empower your HR department to provide a secure and well-protected work environment for your employees in Malaysia.
Stay informed! This guide provides a basic overview only. Refer to SOCSO’s official website for comprehensive details and updates.
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