SOCSO Contribution Table 2026 for Payroll System Malaysia (Updated)

Last reviewed: August 2026. This replaces the outdated RM4,000-ceiling figures from our original 2021 article — the wage ceiling has since risen twice.

What changed since our last update

The version of this page published in 2021 was based on a RM4,000 monthly wage ceiling. That figure is no longer correct. Here's the timeline:

Effective date	Wage ceiling
Up to 2016	RM3,000
2016 – 2019	RM4,000
2019 – 30 Sept 2024	RM5,000
1 October 2024 – present	RM6,000

PERKESO (SOCSO) raised the assessable wage ceiling from RM5,000 to RM6,000 effective 1 October 2024, under the Employees' Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800). Employers were given a six-month transition period (1 October 2024 – 31 March 2025) with no penalties for late adjustment; full compliance has been mandatory since 1 April 2025. The change affected roughly 1.5 million contributors (about 15.5% of the SOCSO workforce) and raised eligible benefit payouts by up to 20.2% for employees in the RM5,000–RM6,000 band.

If your payroll system is still calculating contributions on a RM5,000 or RM4,000 ceiling, your SOCSO and EIS submissions are under-contributing and out of compliance.

SOCSO Contribution Rates 2026 at a Glance

Category	Who it applies to	Employer	Employee	Total
First Category (Employment Injury Scheme + Invalidity Pension Scheme)	Employees under 60 who were contributing before turning 60	1.75%	0.5%	2.25%
Second Category (Employment Injury Scheme only)	Employees aged 60 and above; or first employed after age 55 with no prior SOCSO contribution; or already receiving an Invalidity Pension	1.25%	0% (employer-only)	1.25%

At the RM6,000 ceiling, the maximum monthly contribution works out to:

• First Category: Employer RM104.15 + Employee RM29.75 = RM133.90 total
• Second Category: Employer RM74.40 (employer-only, no employee share)

Wages above RM6,000 are simply capped and contributed at the RM6,000 rate — an employee earning RM6,500 pays the same SOCSO amount as one earning RM15,000.

SOCSO vs EIS — don't mix them up

SOCSO and EIS are two separate schemes with two separate contribution schedules, but they're often confused because they share the same wage ceiling and are usually deducted and submitted together.

	SOCSO (Act 4)	EIS (Act 800)
Purpose	Employment injury protection + invalidity pension	Income replacement and job-search assistance if retrenched
Employer rate	1.75% (First Category)	0.2%
Employee rate	0.5% (First Category)	0.2%
Wage ceiling	RM6,000 (since 1 Oct 2024)	RM6,000 (since 1 Oct 2024)
Foreign workers	Covered since January 2019	Not covered
Max monthly contribution (at ceiling)	RM133.90 total	RM23.80 total (RM11.90 each)

Employer responsibilities

Employers in Malaysia are legally required to:

• Register as an employer with PERKESO within 30 days of hiring their first employee.
• Register every eligible employee as a SOCSO/EIS member and keep their records up to date.
• Deduct the employee's share from wages and pay it together with the employer's share.
• Submit contributions and payment by the 15th of the following month, via the PERKESO ASSIST portal, FPX, internet banking, direct debit, or an appointed bank counter.
• Report any work-related accident to PERKESO within 48 hours.
• Maintain accurate, up-to-date monthly wage and contribution records for audit purposes.

Who must contribute

Registration is mandatory for Malaysian citizens and permanent residents in an employer-employee relationship, with a few exceptions:

• Federal and state government permanent employees (covered separately under the Pensions Act)
• Domestic servants
• Self-employed individuals (unless voluntarily registered under the Self-Employment Social Security Scheme)

Foreign employees working in Malaysia have been covered under SOCSO (Employment Injury Scheme) since January 2019, but they remain excluded from EIS.

Wages subject to contribution vs. exempted

Subject to SOCSO/EIS contribution:
Basic salary, overtime pay, commissions, paid leave wages (annual, sick, maternity, study), service charges, and payments for work done under a contract of service.

Exempted from contribution:
EPF or other approved provident/pension fund contributions, gratuity payments, retrenchment/termination/lay-off benefits, travel allowances, gifts (including festival/annual bonuses), and reimbursements of expenses incurred on the employer's behalf.

SOCSO Contribution Table 2026 (First Category — selected wage brackets)

Monthly Wage (RM)	Employer (RM)	Employee (RM)	Total (RM)
Under 30	0.40	0.10	0.50
30 – 50	0.70	0.20	0.90
100 – 140	2.10	0.60	2.70
500 – 600	9.65	2.75	12.40
1,000 – 1,100	18.35	5.25	23.60
1,500 – 1,600	27.15	7.75	34.90
2,000 – 2,100	35.85	10.25	46.10
5,900 – 6,000	104.15	29.75	133.90
Above 6,000 (capped)	104.15	29.75	133.90

Second Category (employer-only, employees 60+): Under 30 → RM0.30; 500–600 → RM6.90; 1,000–1,100 → RM13.10; 2,000–2,100 → RM25.60; 5,900–6,000 (ceiling) → RM74.40.

Note: PERKESO's official schedule (Third Schedule, Act 4) runs in roughly 45 narrow wage bands rather than a flat percentage, so figures don't scale in a perfectly straight line between brackets. The rows above are verified reference points across the range. For payroll processing, use PERKESO's official contribution table PDF or a payroll system with the current schedule built in, rather than calculating 1.75%/0.5% by hand — manual percentage calculation can be a few sen off from the official bracket amount, which will be rejected on submission.

Quick example

An employee earning RM3,500/month, under 60, First Category:

• Employer contribution: approx. RM3,500 × 1.75% ≈ RM61.25
• Employee contribution: approx. RM3,500 × 0.5% ≈ RM17.50
• Total: approx. RM78.75/month

(Actual amount will match whichever official PERKESO wage bracket RM3,500 falls into — use the official schedule or your payroll software for the exact submission figure.)

Common payroll mistakes to avoid

• Still calculating on the old RM4,000 or RM5,000 ceiling instead of RM6,000.
• Confusing SOCSO's 1.75%/0.5% split with EIS's 0.2%/0.2% split.
• Forgetting to register a new hire within 30 days.
• Missing the 15th-of-the-month submission deadline.
• Applying Second Category (employer-only) rates to an employee who is actually still under First Category.

Why this matters for your payroll

Since the RM6,000 ceiling took effect, employers using outdated payroll templates or manually maintained spreadsheets have been at risk of under-contributing — which creates compliance exposure and shortchanges employees on their eventual SOCSO benefits. A payroll system that keeps its statutory tables (EPF, SOCSO, EIS, PCB) updated automatically removes this risk and keeps every payslip compliant without manual rework each time PERKESO revises a rate or ceiling.

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This article is provided for general reference and reflects PERKESO's contribution schedule as of August 2026. Rates and ceilings are set by PERKESO/the Malaysian government and may be revised — always confirm the current schedule at perkeso.gov.my or with your payroll provider before submission.