Socso Contribution Table 2022 for Payroll System Malaysia

A company is required to contribute SOCSO for its staff/workers according to the SOCSO Contribution Table & Rates as determined by the Act. The company will pay 1.75%  while the staff/workers’ will contribute 0.5% of their wages for the Employment Injury Insurance Scheme and the Invalidity Pension Scheme.

Both the rates of contribution are based on the total monthly wages paid to the employee and contributions should be made from the first month the employee is employed.

There are 2 schemes that are governed under the Employees’ Social Security Act 1969 – the Employment Injury Scheme that protects an employee against occupational accident or disease, and the Invalidity Scheme that insures an employee who is unable to work due to incurable or unlikely to be cured condition or death. It is compulsory for all Malaysian and permanent resident employees to register with SOCSO except for Federal and State Government permanent employees, domestic servants, and those who are self-employed. Foreign workers are protected under SOCSO as well since January 2019.

Monetary payments that are subject to SOCSO contribution are:

• Salaries
• Overtime payments
• Commissions
• Wages for maternity leave, study leave, half-day leave
• Other contractual payments or otherwise

The following monetary payments are not subject to SOCSO contribution:

• Any contribution payable by the employer towards any pension or provident fund
• Gratuity (payment to employee payable at the end of a service period or upon voluntary resignation)
• Any sum paid to cover expenses incurred by the employee in the course of his duties
• Bonuses
• Travel allowances
• Gifts, including cash payments for holidays like Hari Raya, Christmas, etc.