SOCSO Contribution Table 2024: Find Your Exact SOCSO Contribution Rate

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!

SOCSO Contribution Table 2024

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 Pertubuhan Keselamatan Sosial (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 Contribution

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.

SOCSO employer 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 SOCSO 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.