September 4, 2024
The Comprehensive Guide to SOCSO Contributions in Malaysia
In Malaysia, the well-being of every employee is not just a matter of personal concern but a national priority. The Social Security Organisation (SOCSO), or Pertubuhan Keselamatan Sosial (PERKESO) as it’s known in Bahasa Malaysia, embodies this commitment. Established to protect employees against the financial repercussions of workplace injuries, occupational diseases, and other unforeseen circ*mstances, SOCSO represents a critical component of the nation’s social safety net. This guide takes an in-depth look at SOCSO, offering detailed insights into its workings, benefits, and the profound impact it has on Malaysia’s workforce.
Understanding SOCSO (PERKESO)
SOCSO operates under the Ministry of Human Resources, guided by the principles set forth in the Employee’s Social Security Act of 1969. Its foundation was laid to ensure that workers in the private sector are provided with financial protection and support in the event of workplace-related injuries or illnesses. Over the years, SOCSO has evolved, expanding its scope to address the changing dynamics of the workforce and the nature of work itself. This evolution reflects Malaysia’s broader economic and social policies aimed at providing a comprehensive safety net for its citizens.
The Role and Purpose of SOCSO
SOCSO’s role extends far beyond simple financial assistance; it is about fostering a secure working environment for Malaysia’s workforce. By offering coverage for workplace injuries, occupational diseases, emergencies, and death, SOCSO ensures that workers and their families are shielded from the economic strains these events can cause. The organisation’s approach is holistic, aiming not just to provide financial support but also to promote preventive measures and rehabilitation services, thereby underscoring the government’s commitment to worker welfare and social security.
Who Is Covered?
SOCSO’s coverage is mandatory for all private sector employees under the age of 60. This inclusivity ensures that a vast majority of the workforce is protected, from office workers to manual labourers. The distinction between different employment types is crucial here. For example, Aisha, who is employed by a tech startup, benefits from SOCSO’s coverage automatically. In contrast, Raj, who runs his own freelance photography business, falls outside the mandatory coverage but can opt into certain SOCSO schemes designed for self-employed individuals. This flexibility allows SOCSO to cater to the diverse Malaysian workforce, ensuring wide-ranging protection.
Payments Subject to SOCSO Contribution
Any remuneration payable in money to an employee is taken as wages for purposes of SOCSO contributions. This includes the following payments:
- Salary
- Overtime payments
- Commission and service charge
- Payments for leave; such as annual, sick, maternity, rest day,
- public holidays and etc
- Allowances such as incentives, shift, food / meal, cost of living, housing and etc
All payments made to an employee paid at an hourly rate, daily rate, weekly rate, piece or task rate is considered as wages. However the following payments are not considered as wages:
- Payments by an employer to any statutory fund for employees
- Mileage claims
- Gratuity payments or payments for dismissal or retrenchments
- Annual bonus
Navigating Contribution Rates
The contribution mechanism is ingeniously designed to balance affordability with comprehensive coverage. Contributions are calculated as a percentage of the employee’s monthly earnings, ranging from 0.5% to 3%, and are split between the employer and the employee. This shared responsibility model not only fosters a culture of mutual investment in worker safety but also ensures that the system is sustainably funded. For those earning more than RM3,000 a month, the option to contribute voluntarily allows for greater personal control over social security planning.
Socso Contribution Table
First Category (is only applicable to employees who ages are below 60)
- Employer contribute 1.75% of the employee’s total salary
- Employee contribute 0.5% of their monthly total salary
- Total of amount (contribute from employer and employee) will go towards SOCSO fund
| No | Monthly Salary | Employers | Employee | Total SOCSO Contribution |
|---|---|---|---|---|
| 1 | RM0 – RM30.00 | 40 cents | 10 cents | 50 cents |
| 2 | RM30.01 – RM50.00 | 70 cents | 20 cents | 90 cents |
| 3 | RM50.01 – RM70.00 | RM1.10 | 30 cents | RM1.40 |
| 4 | RM70.01 – RM100.00 | RM1.50 | 40 cents | RM1.90 |
| 5 | RM100.01 – RM140.00 | RM2.10 | 60 cents | RM2.70 |
| 6 | RM140.01 – RM200.00 | RM2.95 | 85 cents | RM3.80 |
| 7 | RM200.01 – RM300.00 | RM4.35 | RM1.25 | RM5.60 |
| 8 | RM300.01 – RM400.00 | RM6.15 | RM1.75 | RM7.90 |
| 9 | RM400.01 – RM500.00 | RM7.85 | RM2.25 | RM10.10 |
| 10 | RM500.01 – RM600.00 | RM9.65 | RM2.75 | RM12.40 |
| 11 | RM600.01 – RM700.00 | RM11.35 | RM3.25 | RM14.60 |
| 12 | RM700.01 – RM800.00 | RM13.15 | RM3.75 | RM16.90 |
| 13 | RM800.01 – RM900.00 | RM14.85 | RM4.25 | RM19.10 |
| 14 | RM900.01 – RM1000.00 | RM16.65 | RM4.75 | RM21.40 |
| 15 | RM1000.01 – RM1100.00 | RM18.35 | RM5.25 | RM23.60 |
| 16 | RM1100.01 – RM1200.00 | RM20.15 | RM5.75 | RM25.90 |
| 17 | RM1200.01 – RM1300.00 | RM21.85 | RM6.25 | RM28.10 |
| 18 | RM1300.01 – RM1400.00 | RM23.65 | RM6.75 | RM30.40 |
| 19 | RM1400.01 – RM1500.00 | RM25.35 | RM7.25 | RM32.60 |
| 20 | RM1500.01 – RM1600.00 | RM27.15 | RM7.75 | RM34.90 |
| 21 | RM1600.01 – RM1700.00 | RM28.85 | RM8.25 | RM37.10 |
| 22 | RM1700.01 – RM1800.00 | RM30.65 | RM8.75 | RM39.40 |
| 23 | RM1800.01 – RM1900.00 | RM32.35 | RM9.25 | RM41.60 |
| 24 | RM1900.01 – RM2000.00 | RM34.15 | RM9.75 | RM43.90 |
| 25 | RM2000.01 – RM2100.00 | RM35.85 | RM10.25 | RM46.10 |
| 26 | RM2100.01 – RM2200.00 | RM37.65 | RM10.75 | RM48.40 |
| 27 | RM2200.01 – RM2300.00 | RM39.35 | RM11.25 | RM50.60 |
| 28 | RM2300.01 – RM2400.00 | RM41.15 | RM11.75 | RM52.90 |
| 29 | RM2400.01 – RM2500.00 | RM42.85 | RM12.25 | RM55.10 |
| 30 | RM2500.01 – RM2600.00 | RM44.65 | RM12.75 | RM57.40 |
| 31 | RM2600.01 – RM2700.00 | RM46.35 | RM13.25 | RM59.60 |
| 32 | RM2700.01 – RM2800.00 | RM48.15 | RM13.75 | RM61.90 |
| 33 | RM2800.01 – RM2900.00 | RM49.85 | RM14.25 | RM64.10 |
| 34 | RM2900.01 – RM3000.00 | RM51.65 | RM14.75 | RM66.40 |
| 35 | RM3000.01 – RM3100.00 | RM53.35 | RM15.25 | RM68.60 |
| 36 | RM3100.01 – RM3200.00 | RM55.15 | RM15.75 | RM70.90 |
| 37 | RM3200.01 – RM3300.00 | RM56.85 | RM16.25 | RM73.10 |
| 38 | RM3300.01 – RM3400.00 | RM58.65 | RM16.75 | RM75.40 |
| 39 | RM3400.01 – RM3500.00 | RM60.35 | RM17.25 | RM77.60 |
| 40 | RM3500.01 – RM3600.00 | RM62.15 | RM17.75 | RM79.90 |
| 41 | RM3600.01 – RM3700.00 | RM63.85 | RM18.25 | RM82.10 |
| 42 | RM3700.01 – RM3800.00 | RM65.65 | RM18.75 | RM84.40 |
| 43 | RM3800.01 – RM3900.00 | RM67.35 | RM19.25 | RM86.60 |
| 44 | RM3900.01 – RM4000.00 | RM69.15 | RM19.75 | RM88.90 |
| 45 | RM4000.01 – RM4100.00 | RM70.85 | RM20.25 | RM91.10 |
| 46 | RM4100.01 – RM4200.00 | RM72.65 | RM20.75 | RM93.40 |
| 47 | RM4200.01 – RM4300.00 | RM74.35 | RM21.25 | RM95.60 |
| 48 | RM4300.01 – RM4400.00 | RM76.15 | RM21.75 | RM97.90 |
| 49 | RM4400.01 – RM4500.00 | RM77.85 | RM22.25 | RM100.10 |
| 50 | RM4500.01 – RM4600.00 | RM79.65 | RM22.75 | RM102.40 |
| 51 | RM4600.01 – RM4700.00 | RM81.35 | RM23.25 | RM104.60 |
| 52 | RM4700.01 – RM4800.00 | RM83.15 | RM23.75 | RM106.90 |
| 53 | RM4800.01 – RM4900.00 | RM84.85 | RM24.25 | RM109.10 |
| 54 | RM4900.01 – RM5000.00 | RM86.65 | RM24.75 | RM111.40 |
| 55 | RM5000.01 or above | RM86.65 | RM24.75 | RM111.40 |
Second Category (is only applicable to employees who ages are above 60, or hired after the ages of 55)
- Only contributed by employer
- SOCSO Contribute calculation is based on the rate of 1.25% of employee monthly salary
- Total amount will go to Employment Injury Scheme under SOCSO
| No | Monthly Salary | SOCSO Contribution by Employers only |
|---|---|---|
| 1 | RM0 – RM30.00 | 30 cents |
| 2 | RM30.01 – RM50.00 | 50 cents |
| 3 | RM50.01 – RM70.00 | 80 cents |
| 4 | RM70.01 – RM100.00 | RM1.10 |
| 5 | RM100.01 – RM140.00 | RM1.50 |
| 6 | RM140.01 – RM200.00 | RM2.10 |
| 7 | RM200.01 – RM300.00 | RM3.10 |
| 8 | RM300.01 – RM400.00 | RM4.40 |
| 9 | RM400.01 – RM500.00 | RM5.60 |
| 10 | RM500.01 – RM600.00 | RM6.90 |
| 11 | RM600.01 – RM700.00 | RM8.10 |
| 12 | RM700.01 – RM800.00 | RM9.40 |
| 13 | RM800.01 – RM900.00 | RM10.60 |
| 14 | RM900.01 – RM1000.00 | RM11.90 |
| 15 | RM1000.01 – RM1100.00 | RM13.10 |
| 16 | RM1100.01 – RM1200.00 | RM14.40 |
| 17 | RM1200.01 – RM1300.00 | RM15.60 |
| 18 | RM1300.01 – RM1400.00 | RM16.90 |
| 19 | RM1400.01 – RM1500.00 | RM18.10 |
| 20 | RM1500.01 – RM1600.00 | RM19.40 |
| 21 | RM1600.01 – RM1700.00 | RM20.60 |
| 22 | RM1700.01 – RM1800.00 | RM21.90 |
| 23 | RM1800.01 – RM1900.00 | RM23.10 |
| 24 | RM1900.01 – RM2000.00 | RM24.40 |
| 25 | RM2000.01 – RM2100.00 | RM25.60 |
| 26 | RM2100.01 – RM2200.00 | RM26.90 |
| 27 | RM2200.01 – RM2300.00 | RM28.10 |
| 28 | RM2300.01 – RM2400.00 | RM29.40 |
| 29 | RM2400.01 – RM2500.00 | RM30.60 |
| 30 | RM2500.01 – RM2600.00 | RM31.90 |
| 31 | RM2600.01 – RM2700.00 | RM33.10 |
| 32 | RM2700.01 – RM2800.00 | RM34.40 |
| 33 | RM2800.01 – RM2900.00 | RM35.60 |
| 34 | RM2900.01 – RM3000.00 | RM36.90 |
| 35 | RM3000.01 – RM3100.00 | RM38.10 |
| 36 | RM3100.01 – RM3200.00 | RM39.40 |
| 37 | RM3200.01 – RM3300.00 | RM40.60 |
| 38 | RM3300.01 – RM3400.00 | RM41.90 |
| 39 | RM3400.01 – RM3500.00 | RM43.10 |
| 40 | RM3500.01 – RM3600.00 | RM44.40 |
| 41 | RM3600.01 – RM3700.00 | RM45.60 |
| 42 | RM3700.01 – RM3800.00 | RM46.90 |
| 43 | RM3800.01 – RM3900.00 | RM48.10 |
| 44 | RM3900.01 – RM4000.00 | RM49.40 |
| 45 | RM4000.01 – RM4100.00 | RM50.60 |
| 46 | RM4100.01 – RM4200.00 | RM51.90 |
| 47 | RM4200.01 – RM4300.00 | RM53.10 |
| 48 | RM4300.01 – RM4400.00 | RM54.40 |
| 49 | RM4400.01 – RM4500.00 | RM55.60 |
| 50 | RM4500.01 – RM4600.00 | RM56.90 |
| 51 | RM4600.01 – RM4700.00 | RM58.10 |
| 52 | RM4700.01 – RM4800.00 | RM59.40 |
| 53 | RM4800.01 – RM4900.00 | RM60.60 |
| 54 | RM4900.01 – RM5000.00 | RM61.90 |
| 55 | RM5000.01 or above | RM61.90 |
The Spectrum of Benefits
SOCSO’s benefits are a testament to its role as a cornerstone of social security in Malaysia. From the Employee Injury Scheme, which covers work-related accidents and diseases, to the Invalidity Pension Scheme offering 24-hour protection against severe illnesses and conditions, SOCSO’s range of benefits is comprehensive. The inclusion of Health Check-up Vouchers illustrates SOCSO’s proactive approach to health and prevention. These benefits are not just numbers on paper; they translate to real-world support for individuals like Hafiz, whose recovery from a workplace accident was significantly aided by SOCSO’s interventions, illustrating the tangible difference these benefits make in beneficiaries’ lives.
Streamlining Claims: A User-Friendly Approach
Claiming benefits from SOCSO is designed to be as straightforward as possible, recognising that individuals seeking these benefits are often in challenging circ*mstances. A clear, step-by-step process guides claimants through the necessary documentation and procedures, ensuring that they can access the support they need without undue hassle. This user-friendly approach is part of SOCSO’s commitment to serving Malaysia’s workforce, emphasising accessibility and efficiency in its operations.
Looking Ahead: SOCSO’s Evolving Role
As Malaysia’s economy and job landscape continue to evolve, so too does the role of SOCSO. The organisation’s ongoing adaptation to new types of work, workplace practices, and the broader economic context is crucial for ensuring that all workers remain protected. The future of SOCSO is not just about expanding coverage but also about enhancing the quality and accessibility of its services, reflecting a deep-seated commitment to the well-being of Malaysia’s workforce.
How to Register for SOCSO
Employers can register their company and employees with SOCSO through the following steps:
- Online Registration (ASSIST Portal): Employers can register via SOCSO’s ASSIST portal, which allows them to manage employee records, contributions, and other services online.
- Manual Registration: Employers may also register by submitting the required forms to the nearest SOCSO office.
For more information, please refer to SOCSO website
(https://www.perkeso.gov.my/)
In Conclusion: SOCSO’s Enduring Impact
SOCSO embodies Malaysia’s dedication to creating a safe, healthy, and secure working environment for all employees. Through comprehensive coverage, flexible contribution rates, and a wide array of benefits, SOCSO ensures that workers and their families are protected against the financial burdens of workplace accidents and diseases. As we look toward the future, SOCSO’s role as a pillar of Malaysia’s social security system is set to become even more vital, adapting to meet the needs of a changing workforce and continuing to safeguard the well-being of millions of Malaysians.
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