How do SOCSO and EIS contributions work for employers?
SOCSO (PERKESO) and EIS are paid monthly on employees' wages up to a ceiling of RM6,000 (from 1 October 2024). For employees under 60, SOCSO is 1.75% employer and 0.5% employee; EIS is 0.2% each, as at October 2026 according to PERKESO. Payment is due by the 15th of the following month.
SOCSO (Employees' Social Security Act 1969)
- Gives employees insurance cover for work injuries and invalidity
- For employees under 60 (first category), PERKESO's contributions page gives the employer's share as 1.75% and the employee's as 0.5% of wages
- The wage ceiling for contributions rose from RM5,000 to RM6,000 from 1 October 2024
EIS (Employment Insurance System Act 2017)
- Provides support to employees who lose their jobs
- 0.2% each for employer and employee, on wages up to the same ceiling; the employee side covers ages 18 to 60
Accounting
- Expense the employer's share
- Deduct the employee's share from pay
- Credit a payable account until the monthly payment is made
Compliance
- Register the company and each employee with PERKESO
- Contributions for a month are due by the 15th of the following month
- Keep contribution schedules and receipts
Rates for employees aged 60 and over and for foreign workers differ, so use PERKESO's current contribution tables for those cases. All figures here are as at October 2026, according to PERKESO.
Legal basis
- Employees' Social Security Act 1969
- Employment Insurance System Act 2017
Sources
Applies to 2026 · Last reviewed 29 October 2026
General information for business owners, not legal, tax or professional advice. Rules change, so check the sources or ask a licensed professional before you act.
Related questions
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