SOCSO contribution in Malaysia is a statutory payroll requirement administered by the Social Security Organization, better known as PERKESO. Employers covered by the Employees’ Social Security Act 1969 must register eligible employees and pay the required monthly contributions based on the employee’s wages and applicable contribution category.
For payroll teams, SOCSO is not simply a fixed percentage that can be multiplied by salary. Malaysia uses an official contribution schedule with wage bands. The correct employer and employee amounts must therefore be selected from the statutory PERKESO contribution table.
The wage ceiling is currently RM6,000 per month, effective from 1 October 2024. Employees earning more than RM6,000 are still assessed using the RM6,000 ceiling for the standard Act 4 contribution schedule.
This 2026 guide explains the SOCSO contribution rates, complete salary table, calculation method, age categories, treatment of foreign workers, employer responsibilities, payment deadline and common payroll mistakes.
What Is SOCSO Contribution Malaysia?
SOCSO contribution is a monthly social security contribution made under Malaysia’s Employees’ Social Security Act 1969. SOCSO and PERKESO refer to the same organisation. The contributions fund social security protection such as the Employment Injury Scheme and Invalidity Scheme for eligible employees.
Who Must Contribute to SOCSO?
The Employees’ Social Security Act 1969 and the Employees’ Social Security (General) Regulations 1971 apply to industries with one or more employees. Both principal employers and immediate employers may have registration and contribution responsibilities. PERKESO states that employers employing one or more employees must register and contribute for eligible employees according to the applicable statutory rates.
For normal employed workers, the First Category generally applies to employees below 60 years old. This category provides coverage under both the Employment Injury Scheme and Invalidity Scheme. PERKESO describes the standard contribution basis as an employer share equivalent to 1.75% and an employee share equivalent to 0.5%, but the actual payroll amount must be taken from the official contribution schedule.
Employees who reach 60 and continue working generally fall under the Second Category, which covers the Employment Injury Scheme only. The employer bears this contribution, with no employee deduction under the Second Category.
Another special case applies to a person who had already reached age 55 and had no previous contributions before age 55 because the person had previously not been eligible under Act 4. PERKESO identifies this situation as an exception to normal First Category treatment.
SOCSO coverage also extends to foreign workers. PERKESO currently requires eligible foreign workers to hold a valid passport and an appropriate valid work pass, such as a Visit Pass (Temporary Employment), Employment Pass, Special Pass or another relevant work pass.
Who Is Exempt From SOCSO?
SOCSO should not be confused with schemes designed for self-employed persons. A person who works independently rather than under a contract of service may fall under the Self-Employment Social Security Scheme under Act 789 instead of the normal employee contribution framework under Act 4. PERKESO specifically operates separate social security arrangements for self-employed persons.
Certain categories are also excluded by legislation. The Act contains specific exclusions covering groups such as members of the Malaysian Armed Forces, certain local or visiting forces, police officers performing police duties and certain persons in detention or specified institutions.
Age does not always mean an employee is completely outside SOCSO. An employee who reaches 60 may continue to be covered under the Employment Injury Scheme through the Second Category. Employers should therefore avoid simply deleting an employee from SOCSO payroll processing when the employee turns 60.
Self-employed persons, partners and sole proprietors should also be reviewed under the correct PERKESO scheme rather than being automatically processed as ordinary employees.
SOCSO Contribution Rates for 2026
As of 2026, the normal Act 4 wage ceiling is RM6,000 per month. The ceiling was increased from RM5,000 to RM6,000 effective 1 October 2024 and applies to subsequent contribution months. Employees earning above RM6,000 use the maximum statutory contribution amount based on the RM6,000 ceiling.
First Category SOCSO Rate
For an eligible employee below age 60, the First Category covers both the Employment Injury Scheme and Invalidity Scheme.
The standard rate structure is:
Employer portion: approximately 1.75% of wages.
Employee portion: approximately 0.5% of wages.
Combined contribution: approximately 2.25%.
These percentages describe the contribution structure, but employers should not calculate SOCSO by simply multiplying the employee’s exact salary by 1.75% or 0.5%. PERKESO uses prescribed wage ranges and fixed contribution amounts in its statutory contribution schedule.
Second Category SOCSO Rate
The Second Category covers the Employment Injury Scheme only.
The contribution is borne fully by the employer. No employee deduction is made. The statutory table provides a separate employer-only amount for each wage band.
For example, when wages exceed RM5,900 but do not exceed RM6,000, the First Category amount is RM104.15 from the employer plus RM29.75 from the employee, while the Second Category employer-only contribution is RM74.40.
SOCSO Wage Ceiling for 2026
The maximum wage used for the standard SOCSO contribution schedule is RM6,000 per month.
Therefore, an eligible employee earning RM6,000 and another earning RM8,000 normally use the same maximum Act 4 contribution amount for the standard schedule:
Employer: RM104.15
Employee: RM29.75
Total: RM133.90
Second Category employer-only amount: RM74.40.
Special SOCSO Rules for Foreign Workers in 2026
Foreign worker payroll deserves special attention in 2026 because PERKESO coverage has expanded.
PERKESO states that foreign workers covered under the First Category contribute to both the Employment Injury Scheme and Invalidity Scheme. Under that structure, the employer portion is 1.25% for the Employment Injury Scheme plus 0.5% for the Invalidity Scheme, while the foreign worker contributes 0.5% toward the Invalidity Scheme.
From 1 June 2026, eligible foreign workers are also mandatorily covered by PERKESO’s Non-Employment Injury Scheme, known as LINDUNG 24 JAM. During Phase 1, covering the first two years of implementation, the contribution is 0.75% and is borne by the foreign worker. PERKESO states that this rate will rise to 1.00% in Phase 2 and 1.25% from Phase 3 onward.
This means that during Phase 1 from 1 June 2026, a qualifying foreign worker can have a total employee-side rate of 1.25%, comprising 0.5% for the Invalidity Scheme and 0.75% for LINDUNG 24 JAM. The employer-side rate shown by PERKESO remains 1.75%.
Employers should not apply the foreign-worker 2026 structure blindly to Malaysian employees. PERKESO states that LINDUNG 24 JAM participation is voluntary rather than compulsory for local employees, while it remains compulsory for foreign workers.
Complete SOCSO Contribution Table for 2026
The following is the current Act 4 contribution schedule used for the standard First Category. It reflects the RM6,000 wage ceiling currently published by PERKESO. The employer-only Second Category values are shown separately afterward where relevant.
The statutory wage bands matter. For example, an employee earning exactly RM2,500 falls within the “exceeds RM2,400 but does not exceed RM2,500” band. Employers should use the table amount rather than calculate an exact percentage of RM2,500.
| Monthly Salary / Wage Range | Employee Contribution | Employer Contribution | Total |
|---|---|---|---|
| Up to RM30 | RM0.10 | RM0.40 | RM0.50 |
| >RM30–RM50 | RM0.20 | RM0.70 | RM0.90 |
| >RM50–RM70 | RM0.30 | RM1.10 | RM1.40 |
| >RM70–RM100 | RM0.40 | RM1.50 | RM1.90 |
| >RM100–RM140 | RM0.60 | RM2.10 | RM2.70 |
| >RM140–RM200 | RM0.85 | RM2.95 | RM3.80 |
| >RM200–RM300 | RM1.25 | RM4.35 | RM5.60 |
| >RM300–RM400 | RM1.75 | RM6.15 | RM7.90 |
| >RM400–RM500 | RM2.25 | RM7.85 | RM10.10 |
| >RM500–RM600 | RM2.75 | RM9.65 | RM12.40 |
| >RM600–RM700 | RM3.25 | RM11.35 | RM14.60 |
| >RM700–RM800 | RM3.75 | RM13.15 | RM16.90 |
| >RM800–RM900 | RM4.25 | RM14.85 | RM19.10 |
| >RM900–RM1,000 | RM4.75 | RM16.65 | RM21.40 |
| >RM1,000–RM1,100 | RM5.25 | RM18.35 | RM23.60 |
| >RM1,100–RM1,200 | RM5.75 | RM20.15 | RM25.90 |
| >RM1,200–RM1,300 | RM6.25 | RM21.85 | RM28.10 |
| >RM1,300–RM1,400 | RM6.75 | RM23.65 | RM30.40 |
| >RM1,400–RM1,500 | RM7.25 | RM25.35 | RM32.60 |
| >RM1,500–RM1,600 | RM7.75 | RM27.15 | RM34.90 |
| >RM1,600–RM1,700 | RM8.25 | RM28.85 | RM37.10 |
| >RM1,700–RM1,800 | RM8.75 | RM30.65 | RM39.40 |
| >RM1,800–RM1,900 | RM9.25 | RM32.35 | RM41.60 |
| >RM1,900–RM2,000 | RM9.75 | RM34.15 | RM43.90 |
| >RM2,000–RM2,100 | RM10.25 | RM35.85 | RM46.10 |
| >RM2,100–RM2,200 | RM10.75 | RM37.65 | RM48.40 |
| >RM2,200–RM2,300 | RM11.25 | RM39.35 | RM50.60 |
| >RM2,300–RM2,400 | RM11.75 | RM41.15 | RM52.90 |
| >RM2,400–RM2,500 | RM12.25 | RM42.85 | RM55.10 |
| >RM2,500–RM2,600 | RM12.75 | RM44.65 | RM57.40 |
| >RM2,600–RM2,700 | RM13.25 | RM46.35 | RM59.60 |
| >RM2,700–RM2,800 | RM13.75 | RM48.15 | RM61.90 |
| >RM2,800–RM2,900 | RM14.25 | RM49.85 | RM64.10 |
| >RM2,900–RM3,000 | RM14.75 | RM51.65 | RM66.40 |
| >RM3,000–RM3,100 | RM15.25 | RM53.35 | RM68.60 |
| >RM3,100–RM3,200 | RM15.75 | RM55.15 | RM70.90 |
| >RM3,200–RM3,300 | RM16.25 | RM56.85 | RM73.10 |
| >RM3,300–RM3,400 | RM16.75 | RM58.65 | RM75.40 |
| >RM3,400–RM3,500 | RM17.25 | RM60.35 | RM77.60 |
| >RM3,500–RM3,600 | RM17.75 | RM62.15 | RM79.90 |
| >RM3,600–RM3,700 | RM18.25 | RM63.85 | RM82.10 |
| >RM3,700–RM3,800 | RM18.75 | RM65.65 | RM84.40 |
| >RM3,800–RM3,900 | RM19.25 | RM67.35 | RM86.60 |
| >RM3,900–RM4,000 | RM19.75 | RM69.15 | RM88.90 |
| >RM4,000–RM4,100 | RM20.25 | RM70.85 | RM91.10 |
| >RM4,100–RM4,200 | RM20.75 | RM72.65 | RM93.40 |
| >RM4,200–RM4,300 | RM21.25 | RM74.35 | RM95.60 |
| >RM4,300–RM4,400 | RM21.75 | RM76.15 | RM97.90 |
| >RM4,400–RM4,500 | RM22.25 | RM77.85 | RM100.10 |
| >RM4,500–RM4,600 | RM22.75 | RM79.65 | RM102.40 |
| >RM4,600–RM4,700 | RM23.25 | RM81.35 | RM104.60 |
| >RM4,700–RM4,800 | RM23.75 | RM83.15 | RM106.90 |
| >RM4,800–RM4,900 | RM24.25 | RM84.85 | RM109.10 |
| >RM4,900–RM5,000 | RM24.75 | RM86.65 | RM111.40 |
| >RM5,000–RM5,100 | RM25.25 | RM88.35 | RM113.60 |
| >RM5,100–RM5,200 | RM25.75 | RM90.15 | RM115.90 |
| >RM5,200–RM5,300 | RM26.25 | RM91.85 | RM118.10 |
| >RM5,300–RM5,400 | RM26.75 | RM93.65 | RM120.40 |
| >RM5,400–RM5,500 | RM27.25 | RM95.35 | RM122.60 |
| >RM5,500–RM5,600 | RM27.75 | RM97.15 | RM124.90 |
| >RM5,600–RM5,700 | RM28.25 | RM98.85 | RM127.10 |
| >RM5,700–RM5,800 | RM28.75 | RM100.65 | RM129.40 |
| >RM5,800–RM5,900 | RM29.25 | RM102.35 | RM131.60 |
| >RM5,900–RM6,000 | RM29.75 | RM104.15 | RM133.90 |
| Above RM6,000 | RM29.75 | RM104.15 | RM133.90 |
These values come from PERKESO’s Act 4 contribution schedule.
How to Calculate SOCSO Contribution
Step 1: Determine the Employee’s SOCSO Status
First, confirm that the person is an employee who must be covered under Act 4. Check whether the worker is a normal employee, foreign employee, domestic employee, self-employed person or another special category.
Step 2: Determine the Contribution Category
Identify whether the employee belongs to the First Category or Second Category. Most eligible employees under age 60 fall under the First Category. Employees aged 60 and above who remain employed generally move to Employment Injury Scheme coverage under the Second Category.
Step 3: Determine SOCSO Wages for the Month
SOCSO wages may include more than basic salary. PERKESO states that contribution wages can include wages, overtime, commission, service charges, payments for annual leave, sick leave and maternity leave, public holiday payments, incentives, meal allowances, cost-of-living allowances, housing allowances and other relevant remuneration.
This is important for payroll systems because SOCSO should not automatically be calculated using the employee’s basic salary field only.
Step 4: Apply the RM6,000 Wage Ceiling
If the employee’s applicable SOCSO wages exceed RM6,000, use the statutory ceiling. Do not continue increasing the standard Act 4 contribution beyond the maximum amount.
Step 5: Locate the Correct Wage Band
Match the employee’s contribution wages to the official PERKESO salary band.
For example, RM3,500 belongs to the “exceeds RM3,400 but does not exceed RM3,500” band.
Step 6: Take the Statutory Contribution Amount
Retrieve the employer contribution and employee contribution shown in that wage band.
Do not replace this lookup with an exact percentage calculation.
Step 7: Add Any Applicable 2026 Special Contribution
For foreign workers, payroll systems must also consider the mandatory LINDUNG 24 JAM contribution introduced from 1 June 2026. The Phase 1 employee rate is 0.75%.
SOCSO Calculation Examples for 2026
Example 1: RM1,500 Monthly Wages
An eligible First Category employee receives SOCSO wages of RM1,500.
The correct statutory band is above RM1,400 and up to RM1,500.
Employee contribution: RM7.25
Employer contribution: RM25.35
Total SOCSO contribution: RM32.60
The amount is taken from the official table rather than calculating 0.5% and 1.75% directly against RM1,500.
Example 2: RM2,500 Monthly Wages
For SOCSO wages of RM2,500, use the band above RM2,400 and up to RM2,500.
Employee contribution: RM12.25
Employer contribution: RM42.85
Total SOCSO contribution: RM55.10.
Example 3: RM3,500 Monthly Wages
For SOCSO wages of RM3,500, use the band above RM3,400 and up to RM3,500.
Employee contribution: RM17.25
Employer contribution: RM60.35
Total SOCSO contribution: RM77.60.
Example 4: RM5,000 Monthly Wages
For SOCSO wages of exactly RM5,000, use the band above RM4,900 and up to RM5,000.
Employee contribution: RM24.75
Employer contribution: RM86.65
Total SOCSO contribution: RM111.40.
Example 5: RM6,000 Monthly Wages
For SOCSO wages of RM6,000:
Employee contribution: RM29.75
Employer contribution: RM104.15
Total SOCSO contribution: RM133.90.
Example 6: RM8,000 Monthly Wages
Although the employee earns RM8,000, the standard SOCSO contribution is capped using the RM6,000 wage ceiling.
Employee contribution: RM29.75
Employer contribution: RM104.15
Total SOCSO contribution: RM133.90.
This is one reason payroll software should store both the employee’s actual remuneration and the statutory contribution ceiling.
Employer Responsibilities for SOCSO
Malaysian employers are responsible for registering the business with PERKESO when Act 4 applies and registering eligible workers.
Principal employers also have responsibilities in relation to workers employed through immediate employers.
Each payroll cycle, the employer must identify the wages subject to SOCSO, calculate the employee deduction correctly, add the employer portion and submit the required contribution information.
Employers must also keep employee information current. New hires should be registered on time, employees who leave should be updated, wage information should reflect the relevant payroll month, and changes affecting contribution categories should be handled correctly.
The employer is responsible for remitting both the employer and employee portions to PERKESO. The employee deduction should therefore form part of the payroll calculation, while the employer share should be recorded separately as an employer payroll cost.
SOCSO Contribution Payment Deadline
SOCSO contributions for a month must generally be paid no later than the 15th day of the following month. PERKESO expressly states this payment period on its contribution payment page.
For example, SOCSO contributions relating to September 2026 payroll must be paid by 15 October 2026.
Payroll teams should avoid treating the end of the salary month as the statutory SOCSO deadline. The reporting month and payment deadline are connected but are not the same date.
How Employers Submit SOCSO Contributions
Employers can manage SOCSO contribution processes using PERKESO’s ASSIST Portal. PERKESO’s guidance allows employers to update contribution data individually or through batch files, generate the relevant contribution records and proceed with payment.
PERKESO also lists payment channels including FPX through ASSIST, Direct Debit Authorization, internet banking and supported payment channels.
For most HR and payroll teams, the practical workflow is to complete payroll first, verify the SOCSO contribution data, prepare the contribution file or records, submit through the appropriate PERKESO process and complete payment before the statutory deadline.
Late Payment, Penalties and SOCSO Non-Compliance
Late SOCSO payment can create additional cost. PERKESO states that interest on late contributions is charged at 6% per annum for each day the contribution remains unpaid after the required payment period.
PERKESO’s FAQ further explains that where the calculated late-payment interest is below RM5, RM5 may be imposed for the relevant month.
Late registration, failure to register eligible employees, failure to pay contributions, failure to pay arrears interest and submitting false information are among the matters identified by PERKESO as offences or enforcement issues.
PERKESO’s published guidance states that certain offences may be compounded up to RM5,000, while a person prosecuted and convicted may face imprisonment of up to two years, a fine of up to RM10,000, or both, depending on the offence and applicable provision.
For foreign-worker registration and contribution obligations, PERKESO also states that failure to comply under Act 4 can result, upon conviction, in a maximum RM10,000 fine, imprisonment of up to two years, or both.
Benefits of SOCSO to Employees
SOCSO is designed to provide social security protection rather than simply act as another payroll deduction.
The Employment Injury Scheme can provide benefits related to employment injuries and occupational diseases. PERKESO’s social security framework includes medical treatment, rehabilitation support and financial assistance where an accident or disease affects an employee’s ability to work.
Depending on the employee’s eligibility and scheme, protection may include temporary disablement benefits, permanent disablement benefits, dependents benefits, funeral benefits, rehabilitation and related assistance.
The Invalidity Scheme provides protection where an eligible insured person becomes invalid or dies from causes covered by the scheme. PERKESO also provides financial protection for qualifying dependents in applicable circumstances.
For foreign workers, PERKESO’s 2026 rules also include LINDUNG 24 JAM, which extends accident protection to certain non-work-related accidents outside working hours.
Common SOCSO Payroll Mistakes
Using a Simple Percentage Instead of the Official Table
One of the most common mistakes is calculating 1.75% and 0.5% directly against the exact employee salary. These percentages describe the contribution structure, but payroll should use the fixed amount in the applicable statutory wage band.
Using an Old RM5,000 Ceiling
The SOCSO wage ceiling increased to RM6,000 from 1 October 2024. A payroll system still capped at RM5,000 will understate contributions for employees earning above RM5,000.
Using Basic Salary Only
SOCSO wages can include overtime, commission, service charges and several allowances and paid leave items. Employers should map earnings correctly instead of using only the basic-salary field.
Applying First Category to Every Employee
Employees may fall under different categories because of age and contribution history. Payroll teams should determine the employee’s correct category before selecting a contribution amount.
Deducting Employee SOCSO Under the Second Category
The Second Category amount is employer-only. Payroll should not make an employee SOCSO deduction where the Second Category applies.
Ignoring the 2026 Foreign Worker Change
From 1 June 2026, mandatory LINDUNG 24 JAM protection adds a Phase 1 employee contribution for eligible foreign workers. Payroll systems used for foreign-worker payroll should be updated accordingly.
Missing New Employees
A new hire can easily be omitted when HR and payroll systems are not linked. Employers should make employee registration part of their onboarding workflow.
Failing to Update Leavers
Contribution records should reflect the amount actually paid to the employee in the relevant month. PERKESO confirms that where an employee leaves midway through the month, the contribution is based on the wages paid for that month.
Paying After the 15th
Employers sometimes complete payroll on time but delay statutory submission. SOCSO payment for a month is due by the 15th of the following month.
How Payroll Software Can Help With SOCSO Compliance
SOCSO becomes much easier to manage when statutory payroll rules are built into the payroll workflow.
A payroll system can determine an employee’s applicable SOCSO wages, apply the current statutory ceiling, identify the correct contribution band and separate employee deductions from employer costs. It can also maintain employee details needed for payroll compliance and produce contribution reports for review before submission.
This becomes especially useful when rules change. The increase of the wage ceiling to RM6,000 and the 2026 foreign-worker LINDUNG 24 JAM requirement show why employers should avoid relying on old spreadsheets or hard-coded payroll formulas.
PayDay Malaysia can support employers by bringing payroll calculations, employee records and statutory contribution workflows into a more organised process. Employers should still verify statutory treatment for unusual employment cases against current PERKESO requirements, particularly where age, immigration status or special employee categories affect coverage.
