Published November 10, 2016 · Updated October 8, 2026
Any Malaysian company with even one employee must contribute to the Social Security Organisation; this is a statutory duty under the Employees' Social Security Act 1969, which PERKESO administers.
In this blog, we explain the current schemes, contribution rates, registration rules, payment deadlines and the compliance checklist every employer in Malaysia should follow for 2026, updating our guide first published on November 10, 2016.
What Is SOCSO and What Does It Cover?
SOCSO is Malaysia's statutory social-security system, providing protection for employment injury, invalidity and other eligible risks.
SOCSO was established under the Employees' Social Security Act 1969 and is administered by PERKESO, an agency under the Ministry of Human Resources. Employers register with PERKESO, calculate and remit monthly contributions, and employees or their families claim benefits when an insured event occurs.
Coverage is delivered through four core schemes: the Employment Injury Scheme, the Invalidity Scheme, the Non-Employment Injury Scheme (LINDUNG 24 JAM), and the Employment Insurance System introduced in 2018. Benefits range from free medical care and disability pensions to survivor pensions and retrenchment assistance. Full scheme details and contribution tables are published on the official PERKESO website.
In practice, SOCSO sits alongside EPF as one of the monthly statutory deductions every employer in Malaysia must process for local employees.
Which SOCSO Schemes and Benefits Can Employees Claim?
Employees can claim medical care, disability pensions, dependants' and survivor benefits, funeral benefits and, under the EIS, temporary financial assistance after retrenchment.
Nationally administered social-security protection includes the Employment Injury Scheme, the Invalidity Scheme, LINDUNG 24 JAM and EIS. The first two schemes are provided under Act 4, LINDUNG 24 JAM covers eligible non-employment injuries, and EIS provides employment-loss support under Act 800.
The Employment Injury Scheme covers employment injuries, occupational diseases and qualifying commuting accidents. The Invalidity Scheme supports eligible insured persons who become permanently incapable of earning a living, subject to the statutory conditions. LINDUNG 24 JAM provides round-the-clock protection for eligible non-employment accidents, while EIS supports eligible insured persons after a qualifying loss of employment.
The table below distinguishes the four schemes and their principal benefits. Benefit entitlement remains subject to the relevant Act, contribution history and the national social-security agency’s eligibility conditions.
SOCSO Schemes and Key Benefits in 2026
| Scheme | Who It Covers | Key Benefits |
|---|---|---|
| Employment Injury Scheme | All insurable employees, including foreign workers since 1 January 2019 | Medical care, temporary and permanent disablement benefits, dependants' benefit, funeral benefit, rehabilitation |
| Invalidity Scheme | Employees in the First contribution category | Invalidity pension, constant-attendance allowance, survivor's pension, funeral benefit |
| Employment Insurance System (EIS) | Insured persons who suffer a qualifying loss of employment, apply within 60 days and meet contribution qualifying conditions | Job Search Allowance for 3–6 months, job-search and training support, and Reduced Income Allowance where eligible |
How Do SOCSO Contributions Work in 2026?
Current national social-security schedules use a RM6,000 monthly wage ceiling, with separate Act 4, EIS and LINDUNG 24 JAM rules.
National social-security contribution schedules apply a monthly wage ceiling of RM6,000, effective from 1 October 2024. Where wages exceed RM6,000, the prescribed contribution is calculated using the RM6,000 ceiling. The ceiling limits the contribution calculation; it does not by itself decide whether an employee is covered.
The Act 4 contribution categories are set out below. EIS is a separate Act 800 contribution, while LINDUNG 24 JAM has its own employee-funded contribution.
LINDUNG 24 JAM began on 1 June 2026. Its Phase 1 contribution is 0.75% of monthly wages, subject to the RM6,000 ceiling, and is fully borne by the employee. Under current PERKESO guidance, participation is voluntary for employees in Malaysia who are eligible to choose, while it remains mandatory for foreign workers. Employers remit the applicable employee contribution through payroll; there is no additional employer share for this scheme.
Employers should use the current national social-security contribution schedule and ASSIST records for each wage month rather than relying on percentage calculations alone.
1. First Category – Employment Injury and Invalidity
First Category contributions total 2.25% of insurable wages. The employer pays 1.75%, while the employee pays 0.50%. It covers both the Employment Injury Scheme and the Invalidity Scheme. Any LINDUNG 24 JAM contribution is separate.
Most eligible employees below age 60 fall within this category.
2. Second Category – Employment Injury Only
Second Category contributions provide Employment Injury Scheme protection only. The employer pays 1.25% of insurable wages under the prescribed schedule. Any LINDUNG 24 JAM contribution is separate.
It applies to employees aged 60 and above, whether or not they have previous contributions. It also applies to eligible employees aged 55 to 59 who first enter the scheme without previous SOCSO contributions. Employees aged 55 to 59 who were already contributing before age 55 remain in the First Category until they reach 60.
3. Employment Insurance System (EIS)
The EIS adds 0.20% from the employer and 0.20% from the employee, capped at the same RM6,000 wage ceiling for 2026. It funds job-loss benefits under the Employment Insurance System Act 2017.
How Is SOCSO Different from EPF and EIS?
SOCSO provides social-risk protection, EPF builds retirement savings, and EIS provides temporary support after involuntary job loss.
The Employees Provident Fund (EPF), administered by Kumpulan Wang Simpanan Pekerja (KWSP), is a separate statutory body governed by the EPF Act 1991. It accumulates retirement savings at higher contribution rates. It pays out at retirement or through approved withdrawals. Our companion article on Mandatory Contributions for Employees Provident Fund (EPF) / Kumpulan Wang Simpanan Pekerja (KWSP) covers those rates in detail.
EIS is collected with social-security contributions. It supports involuntary job loss, such as retrenchment or business closure. It does not replace retirement savings.
In practice, employers remit EPF, SOCSO and EIS each month. All three have a deadline on the 15th day of the following month.
Who Must Register for SOCSO and When Are Contributions Due?
Employers with at least one eligible employee must register with the national social-security agency and pay monthly contributions by the following month's 15th day.
Registration is free and completed online through the ASSIST portal. Employers should register as soon as they hire their first eligible employee. Our step-by-step SOCSO registration guide outlines the documents and process involved.
Coverage rules differ by worker type. Check each group separately:
1. Covered Employees
Eligible employees engaged under a contract of service or apprenticeship must generally be registered. The RM6,000 wage ceiling caps contribution calculations. It does not determine coverage.
2. Excluded Persons
Permanent Federal and State Government employees, self-employed people, sole proprietors and partnership owners are generally exempt. Domestic workers have separate statutory coverage rules. They should not be treated as automatically excluded.
3. Foreign Workers
Foreign workers have been covered by the Employment Injury Scheme since 1 January 2019. Invalidity Scheme protection was extended to foreign workers from 1 July 2024, subject to the applicable conditions.
Under current guidance from the national social-security agency, LINDUNG 24 JAM remains mandatory for foreign workers. Its Phase 1 contribution is 0.75% of monthly wages, subject to the RM6,000 ceiling, and is borne by the foreign worker. Employers must remit the applicable contribution through payroll.
Employer Payroll Compliance Checklist for SOCSO in 2026
| Compliance Task | Requirement in 2026 | Official Source |
|---|---|---|
| Employer registration | Register with PERKESO as soon as you employ your first eligible employee | www.perkeso.gov.my |
| Monthly SOCSO contribution | Remit employer and employee shares by the 15th of the following month | www.perkeso.gov.my (Assist portal) |
| Wage ceiling | Calculate contributions on monthly wages up to RM6,000; apply the current Act 4 schedule, including LINDUNG 24 JAM where applicable | www.perkeso.gov.my |
| EIS contribution | Remit 0.20% employer plus 0.20% employee by the same monthly deadline | www.perkeso.gov.my |
| Employee records | Keep wage and contribution records and retain Assist payment confirmations | www.perkeso.gov.my |
| Late payment | Interest applies to arrears; prosecution risks a fine of up to RM10,000, imprisonment of up to two years, or both | www.perkeso.gov.my |
How Can Employers Verify Official SOCSO Contribution Notices?
Employers should verify contribution notices by checking the sender domain, the reference number and the ASSIST portal directly. Log in to the official ASSIST portal and compare the notice with the remittance advice generated for that wage month. Genuine official contribution notices carry an employer reference that matches the company's registration details.
If any detail looks unusual, call the official contact line or log in to the ASSIST portal directly rather than using links in emails. These verification steps fit naturally in payroll contexts across Malaysia, which is why many companies bundle them with their monthly payroll run.
How Can Employers Verify Official SOCSO Correspondence?
The official SOCSO logo belongs to the national social-security agency. Verify any letter, email or portal through its official website before acting.
The official SOCSO logo belongs to the national social-security agency. Verify any letter, email or portal through its official website before acting.
An official logo alone does not establish that a letter, email or portal notice is genuine. We do not reproduce the SOCSO logo here because it is an official brand asset; employers should identify it only through the agency’s own website and official portal.
For correspondence about arrears, inspections or contribution updates, type the official agency web address into the browser, open ASSIST directly and compare the employer reference and wage-month records. If anything is unclear, use the contact details published on the official agency website rather than responding through a message link.
Conclusion
SOCSO is a monthly, non-negotiable employer obligation, and staying compliant becomes straightforward once registration, contribution and record-keeping habits are in place.
We help clients in Malaysia register for SOCSO and set up the ASSIST portal. We apply the correct contribution categories and remit contributions on time. Our teams also manage the wider statutory calendar. This includes monthly payroll, the compilation of unaudited financial statements and your company's estimate of tax payable in Malaysia.
For budgeting purposes, our article Malaysia Sdn Bhd Accounting Services 2026: How Monthly Bookkeeping, Tax Filing and Audit Packages Are Priced (RM Guide) breaks down typical retainers. You may also like our newsroom update on Lawrence, Invited Speaker for 15th Annual Malaysian Tax Conference.
Getting SOCSO right with the national social-security agency shows that a company takes its employer duties seriously. It also helps avoid preventable penalties in 2026.
Keep Your Statutory Payroll on Track
Our Corporate Services Provider team manages social-security registration, monthly contributions and payroll end to end, so your company avoids penalties.
Frequently Asked Questions
Register online as an employer through PERKESO's Assist portal at no cost, ideally as soon as you hire your first employee. Our SOCSO registration guide outlines the required documents and steps.
By the 15th day of the month following the wage month. Contributions are calculated on insurable wages of up to RM6,000 under the schedule effective 1 October 2024 and paid through the Assist portal.
All employees under a contract of service or apprenticeship must generally be registered. The RM6,000 wage ceiling caps contribution calculations; it does not decide coverage. Foreign workers have Employment Injury Scheme protection since 1 January 2019 and Invalidity Scheme protection from 1 July 2024. Sole proprietors, partnership owners and permanent Government employees are generally exempt; domestic workers have separate rules.
Interest is charged on arrears, and PERKESO may prosecute under Section 94A of the Employees' Social Security Act 1969, with a fine of up to RM10,000, imprisonment of up to two years, or both.
No. SOCSO, run by PERKESO, insures employees against injury, invalidity and job loss, while EPF is a retirement savings scheme administered by KWSP. Both are mandatory monthly employer obligations.
Abigail Yu
Director
Abigail Yu oversees executive leadership at 3E Accounting Group, leading operations, IT solutions, public relations, and digital marketing to drive business success. She holds an honors degree in Communication and New Media from the National University of Singapore and is highly skilled in crisis management, financial communication, and corporate communications.
