EIS Contribution Table 2021 for Payroll System Malaysia

EIS Contribution Table 2026 for Payroll System Malaysia

In Malaysia, staying compliant with the latest statutory payroll deductions is essential for businesses of all sizes. For 2026, the Employment Insurance System (EIS / SIP) remains a crucial safety net for employees, but there are updated figures you need to factor into your payroll processing.

Here is everything you need to know about the latest eis contribution table and how to manage your workforce deductions efficiently.

What is the EIS Contribution Rate for 2026?

The EIS contribution rate is set at 0.4% of an employee’s estimated monthly wage. According to the official eis contribution table, this is split equally: 0.2% is paid by the employer, and 0.2% is deducted from the employee’s monthly wages.

Important 2026 Update: The wage ceiling for EIS contributions is capped at RM6,000 per month. This means that for any employee earning RM6,000 or more, the maximum contribution is capped at RM11.90 from the employer and RM11.90 from the employee, totaling RM23.80 per month.

Who is Eligible to Contribute?

Under Malaysian law, including guidelines aligned with the employment act 1955, all private-sector employers are required to pay monthly EIS contributions on behalf of their employees.

An employee is defined as someone employed for wages under a contract of service or apprenticeship (whether expressed or implied, oral or in writing).
Age Bracket: All employees aged 18 to 60 must contribute. However, employees aged 57 and above who had no prior contributions before reaching age 57 are exempt.
Exemptions: Government employees, domestic workers, and the self-employed are exempt from EIS.

Who is Eligible to Claim EIS Benefits?

All insured employees (Insured Persons) who suffer a loss of employment are eligible for EIS financial assistance, with the following exceptions:

Voluntary resignation by the employee
Expiry of a fixed-term contract
Unconditional termination of a contract based on mutual agreement
Completion of a specific project under a contract of service
Retirement
Dismissal due to employee misconduct

Note: Applicants claiming benefits must prove they are capable of working, available to work, and actively seeking new employment.

Simplifying Payroll & HR Compliance in 2026

Managing payroll goes beyond just EIS. Employers must juggle multiple statutory deductions and changing regulations, including making sure base salaries meet the current minimum wage malaysia.

To process monthly salaries accurately, HR professionals need to reference the latest socso contribution table (which also follows the updated RM6,000 wage ceiling) and utilize a reliable epf calculator to ensure correct provident fund deductions. For income tax, calculating the Monthly Tax Deduction (MTD) accurately requires using an lhdn pcb calculator or standard pcb calculator.

Furthermore, calculating extra working hours in compliance with labor laws is much easier when using an overtime calculator malaysia. At the end of the year, employers must also efficiently generate and distribute the ea form / borang ea for employee tax filing.

Handling all these moving parts manually is prone to human error. Upgrading to a comprehensive hr software malaysia or an automated payroll software malaysia ensures that your business stays 100% compliant with the latest 2026 regulations while saving you countless hours of administrative work.