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SOCSO Contribution Table & Rates

In Malaysia, every employee in Malaysia (Malaysian or permanent resident) is eligible for SOCSO’s coverage (SOCSO means the Social Security Organization). Every employer has to register their new employee with SOCSO within 30 days from the date of commencement of the work.

 

1. The Benefits of SOCSO

Aimed to provide protection and security both medically and financially, SOCSO will pay disablement benefits, funeral benefits, dependent benefits, invalidity pension as well as survivor’s pension to SOCSO members. The social insurance provides Employment Injury Insurance and Invalidity Pension Scheme to all members.

a) Employment Injury Scheme Benefits:

  • Medical benefits
  • Temporary disablement benefit
  • Permanent disablement benefits
  • Constant attendance allowance
  • Rehabilitation benefit
  • Return to work programme
  • Dependent benefit
  • Funeral benefits
  • Education benefits.

Please note that SOCSO coverage will continue when the SOCSO members have discontinued the contribution (if they fulfill certain conditions).

b) Invalidity Pension Scheme:

  • Invalidity pension
  • Invalidity grant
  • Survivors’ pension
  • Funeral benefit
  • Facilities for Physical Rehabilitation and Dialysis
  • Education Benefits

c) Free Health Check-Ups:

Another interesting but lesser-known benefit of SOCSO is the free checkup to its members who are 40 years old and above under the SOCSO Health Screening Programme (HSP). All SOCSO members are qualified for HSP to screen for diseases such as cardiovascular diseases, diabetes as well as cervical and breast cancer at the registered panel clinics of SOCSO.

 

2. SOCSO’s Contribution: Contribution Table & Rates

The contributions [into the scheme] depend on an employee’s monthly wage and it is contributed by both the employer and the employee. The amount paid is calculated at 0.5% of the employee’s monthly earnings (according to 24 wage classes as in the Contribution Table & Rates below) along with the 1.75% contribution [of the monthly payroll] from the employer. Though self-employed persons, domestic workers and foreigners are exempted from paying SOCSO, they can opt for voluntary coverage.

View the table of rate of contributions.

 

On a Final Note

SOCSO’s coverage is one of the employee benefits in Malaysia that provide protection to all eligible employees (who are a Malaysian or permanent resident of Malaysia that works in the country) in the event of accident or disability. The recent increase in the ceiling of wages for contributions from MYR 3,000 per month to MYR 4,000 per has indeed benefitted many employees in the country.