Employer SOCSO Guide 2026: Registration, Contribution Rates, Monthly Submission, and Compliance for Malaysian Employers

A new restaurant opens in Penang with 12 employees. The owner registers the company with SSM, opens a bank account, and starts operations. Two months in, a kitchen staff member burns his arm and needs hospital treatment. The hospital asks for the employer's PERKESO registration number. The owner does not have one — they never registered with SOCSO. The medical bill is now a personal liability, and the employer faces penalties for failing to register.

SOCSO registration is not automatic with SSM registration, and many new employers discover their obligation only when something goes wrong. This guide covers everything a Malaysian employer needs to know about SOCSO in 2026: registration procedures, contribution rates and calculation, monthly submission through PERKESO Assist, compliance deadlines, and the penalties for getting it wrong.

For a broader view of all statutory obligations — EPF, SOCSO, EIS, PCB, and HRDF — see our employer statutory compliance guide .

Part of the SOCSO (PERKESO) Malaysia 2026 Guide — employer & employee contribution rates, benefits, claims, and compliance all in one place.

At a Glance — Employer SOCSO Obligations

• Register: Within 30 days of hiring the first employee (PERKESO Assist or PERKESO branch)
• Contribute monthly: Both employer and employee shares, by the 15th of the following month
• Forms: Borang 8A (monthly contribution return), Borang 2 (employee registration), Borang 21 (accident report, within 48 hours)
• Categories: First Category (under 60, both schemes, both parties pay) / Second Category (60+, Employment Injury only, employer pays only)
• Penalties: Up to RM10,000 fine or 2 years' imprisonment for non-compliance
• Late payment: 6% interest per annum, calculated daily on outstanding amounts

Who Must Register with SOCSO

All employers with at least one eligible employee are required to register with PERKESO. There is no minimum headcount exemption — a sole proprietor with one part-time assistant is required to register.

Eligible employees

An employer must register and contribute for:

• All Malaysian employees under 60
• All permanent resident employees under 60
• All foreign workers with valid work permits under 60
• Part-time, contract, and casual workers (if they meet the definition of "employee" under the Act)
• Working directors of a company

Exempt employees

• Employees aged 60 and above who were not previously insured with SOCSO (they cannot register for the first time after 60)
• Domestic workers (maids, gardeners) — not covered by the Act unless voluntarily registered
• Self-employed individuals (who have their own voluntary scheme — SKSPS)
• Government employees (covered by the pension system)

Registration deadline

Registration must be completed within 30 days of hiring the first eligible employee. Late registration attracts penalties.

How to Register as an Employer with SOCSO

Step 1: Submit the Employer Registration Form

You need Borang 1 (Employer Registration Form), which can be submitted:

• Online through PERKESO Assist (assist.perkeso.gov.my) — fastest method, immediate registration number
• In person at any PERKESO office — same-day processing
• By post — processing takes 2 to 4 weeks

Step 2: Provide Required Documents

• SSM registration certificate (business or company)
• NRIC of business owner or company director
• Business premise address and contact information
• Estimated number of employees and nature of business

Step 3: Receive PERKESO Employer Code

Upon successful registration, PERKESO issues an employer code — a unique identifier used for all future submissions and correspondence. This code appears on all SOCSO-related documents and is required for PERKESO Assist login.

Step 4: Register Individual Employees

Each eligible employee must be registered individually. This is done by:

• Submitting Borang 2 (Employee Registration Form) for each employee, or
• Registering employees in bulk through PERKESO Assist

The employee is then assigned a SOCSO registration number, which stays with them for life across all employers.

Monthly SOCSO Contribution Submission

Form 8A (Borang 8A)

The monthly contribution return is Form 8A, which lists all employees, their wages for the month, and the computed employer and employee contributions.

PERKESO Assist Submission

The recommended submission method is PERKESO Assist:

Step 1: Log in to assist.perkeso.gov.my with your employer code and password.

Step 2: Select "Caruman" → "Borang 8A".

Step 3: Enter the contribution month.

Step 4: Enter each employee's monthly wage. The system calculates the employer and employee contributions automatically based on the current contribution table.

Step 5: Review the total contribution amount and proceed to payment.

Step 6: Make payment via FPX (online banking), debit card, or at a PERKESO counter.

Step 7: Download and save the confirmation receipt.

Payment Deadline

SOCSO contributions for a given month must be paid by the 15th of the following month. Example: contributions for January 2026 must be paid by 15 February 2026.

Late payment incurs interest at 6% per annum, calculated daily on the outstanding amount.

Contribution as a Deductible Expense

The employer's SOCSO contribution is an allowable business expense for income tax purposes. The employee's share, while deducted from the salary by the employer, is not a company expense — it is the employee's money remitted to PERKESO on their behalf.

Which Contribution Category Applies to Each Employee

First Category: Under 60

Most employees fall here. Both Employment Injury Scheme and Invalidity Scheme apply. Both employer and employee contribute.

Second Category: 60 and Above

For employees who continue working past 60 and were already SOCSO-insured before reaching 60. Only Employment Injury Scheme applies. Only the employer contributes — the employee pays nothing.

Foreign Workers

Foreign workers are treated the same as Malaysian employees for SOCSO purposes. They fall under the First Category if under 60. The contribution rates are identical. SOCSO coverage for foreign workers is one of the most commonly overlooked obligations by employers.

Common Employer SOCSO Compliance Mistakes

1. Failing to register within 30 days

The most common error among new businesses. The penalty is a fine of up to RM10,000 or imprisonment of up to 2 years, or both. In practice, PERKESO typically issues a warning and requires immediate registration with backdated contributions, but repeat offenders face prosecution.

2. Under-reporting employee wages

Declaring a lower salary to PERKESO than the actual salary paid — to reduce the contribution — is an offence. An employer reporting RM1,500 to SOCSO while paying RM3,000 deprives the employee of the correct level of benefit coverage and attracts penalties upon audit.

3. Misclassifying employees as independent contractors

Calling a full-time worker a "freelancer" or "contractor" to avoid SOCSO contributions is one of the most litigated issues in Malaysian employment law. The test is the substance of the relationship — control, integration, economic dependence — not the label on the contract. PERKESO and the Labour Department increasingly scrutinise this classification.

4. Missing contribution months

A gap in the contribution record — even for a single month — is visible in the PERKESO system. During an audit, unexplained gaps are treated as non-compliance for those months. Interest is applied retroactively.

5. Not updating employee status changes

When an employee resigns, turns 60, or goes on extended unpaid leave, the employer must update the contribution record accordingly. Continuing to contribute for a departed employee is wasteful; failing to stop contributions at 60 and switching to the Second Category is incorrect.

SOCSO Audit and Employer Records

PERKESO conducts employer audits — both random and targeted. During an audit, the PERKESO officer will request:

• Employee list and salary records
• Form 8A submissions for the audit period
• Proof of payment (bank statements, PERKESO Assist receipts)
• Employment contracts or offer letters
• Attendance records

Records must be kept for at least 7 years. Inability to produce records is treated as non-compliance.

FAQ

Do I need to register with SOCSO if I only have one employee?

Yes. There is no minimum employee threshold. A sole proprietor with a single part-time employee must register and contribute for that employee.

What if an employee does not want SOCSO deductions and asks me not to deduct?

The employee cannot opt out. SOCSO is mandatory by law. An employer who agrees to an employee's request to skip SOCSO deductions is violating the Act, and both the employer's and employee's shares remain payable — with interest — if discovered. Explain to the employee that the deduction is a legal requirement, not optional.

How do I handle SOCSO for an employee on unpaid leave?

If the employee receives no salary for the month, no SOCSO contribution is payable for that month. Record the month as a zero-contribution month. This is not a gap — it is a valid nil-return month. Document the reason (unpaid leave) in your payroll records.

Can I pay SOCSO contributions annually instead of monthly?

No. Statutory contributions must be remitted monthly. There is no annual pre-payment option. Late payment interest accrues monthly, so deferring payment always costs more.

What happens if I overpay SOCSO for an employee?

Overpayments can be corrected by submitting an amended Form 8A for the affected month through PERKESO Assist. The excess can be offset against future contributions or refunded. Contact the PERKESO Employer Service Centre for guidance on the specific correction procedure.

SOCSO compliance is not administratively difficult — register within 30 days of hiring, report wages accurately, submit Form 8A monthly through PERKESO Assist, and pay by the 15th. The system is designed for straightforward monthly processing. The problems arise not from complexity but from employers not knowing the obligations exist until a workplace accident triggers scrutiny.

To model the full cost of employing a worker — salary, EPF, SOCSO, EIS, and PCB — use the DuitTools salary calculator .