SOCSO contributions should be paid by the employer by the 15th of the following month. For example, contributions for January should be paid by February 15th.
The easiest way to calculate SOCSO contributions is to use a payroll software or online calculator, such as PayrollPanda. Tools like PayrollPanda go even further — automating your entire monthly payroll, including SOCSO, EPF, and EIS contributions, so you never have to calculate manually again.
All Malaysian employees, including foreign workers with valid work permits, are covered by SOCSO. Certain categories, such as domestic workers, are also covered under specific schemes. Government servants are covered separately under PERKESO’s scheme for public sector employees.
Yes, part-time employees are also required to contribute to SOCSO based on their monthly salary. The contribution rates for part-time employees are the same as for full-time employees, based on their salary bracket.
No, employees in Malaysia cannot opt out of SOCSO coverage. It is mandatory for all Malaysian employees, including foreign workers with valid work permits, to be covered under the Social Security Organization (SOCSO).
SOCSO (via PERKESO) covers work-related injuries, disabilities, and death under two schemes: the Employment Injury Scheme and the Invalidity Scheme. EIS (Employment Insurance System) is a separate fund that provides short-term financial assistance to employees who lose their jobs. Both are administered by PERKESO and contributions are calculated together on your payslip.
