How to Calculate SOCSO Contribution 2026: Step-by-Step Guide with Rates, Categories, and Monthly Deduction Tables
Learn how to calculate SOCSO (PERKESO) contributions step by step for 2026. Complete guide covering First Category and Second Category rates, employee and employer shares, salary ceiling, contribution formula, and worked examples for every wage level.
A payroll officer in a small manufacturing firm in Selangor processes salaries for 15 employees every month. The EPF and PCB deductions are automated by payroll software, but SOCSO is the one she still calculates manually — because the rates split across two categories, the salary ceiling differs, and one misclassification means the contribution is wrong for both employer and employee.
SOCSO contribution calculation is not complicated, but it requires knowing three things: which of the two contribution categories applies to the employee, what the current wage ceiling is, and which rate to apply. Once you have those three inputs, the arithmetic takes thirty seconds.
This guide walks through the full SOCSO calculation for 2026 with worked examples across every wage band, and explains both the First Category (Employment Injury Scheme + Invalidity Scheme) and Second Category (Employment Injury Scheme only).
To see your full net pay after SOCSO and all other deductions, use the DuitTools salary calculator .
The Two SOCSO Contribution Categories
SOCSO divides employees into two categories, and the category determines which schemes apply and what the contribution rate is.
First Category (Kategori Pertama)
Applies to: Malaysian citizens, permanent residents, and foreign workers who are under 60 years old.
The First Category covers both schemes:
- Employment Injury Scheme (EIS): Covers workplace accidents, commuting accidents, and occupational diseases.
- Invalidity Scheme (Skim Keilatan): Covers invalidity or death from any cause, not just workplace-related events. This is a 24-hour cover.
Both employee and employer contribute. The total contribution is the sum of both schemes.
Second Category (Kategori Kedua)
Applies to: Employees who are 60 years old and above (and were already insured before reaching 60).
The Second Category covers only:
- Employment Injury Scheme: Workplace-related accidents and diseases only.
Only the employer contributes. The employee pays nothing. The Invalidity Scheme does not apply because it requires the employee to be under 60.
SOCSO Contribution Rates for 2026 (First Category)
The First Category contribution is the sum of two components: Employment Injury Scheme + Invalidity Scheme. The employer's share is larger for the Employment Injury component, and the employee's share is larger for the Invalidity component.
| Monthly Wage Band (RM) | Employer Share | Employee Share | Total |
|---|---|---|---|
| Below 30 | 0.40 | 0.10 | 0.50 |
| 30.01 – 50 | 0.70 | 0.20 | 0.90 |
| 50.01 – 70 | 1.10 | 0.30 | 1.40 |
| 70.01 – 100 | 1.50 | 0.40 | 1.90 |
| 100.01 – 140 | 2.10 | 0.60 | 2.70 |
| 140.01 – 200 | 2.95 | 0.85 | 3.80 |
| 200.01 – 300 | 4.35 | 1.25 | 5.60 |
| 300.01 – 400 | 6.15 | 1.75 | 7.90 |
| 400.01 – 500 | 7.85 | 2.25 | 10.10 |
| 500.01 – 600 | 9.65 | 2.75 | 12.40 |
| 600.01 – 700 | 11.45 | 3.25 | 14.70 |
| 700.01 – 800 | 13.25 | 3.75 | 17.00 |
| 800.01 – 900 | 15.05 | 4.25 | 19.30 |
| 900.01 – 1,000 | 16.85 | 4.75 | 21.60 |
| 1,000.01 – 1,100 | 18.65 | 5.25 | 23.90 |
| 1,100.01 – 1,200 | 20.45 | 5.75 | 26.20 |
| 1,200.01 – 1,300 | 22.25 | 6.25 | 28.50 |
| 1,300.01 – 1,400 | 24.05 | 6.75 | 30.80 |
| 1,400.01 – 1,500 | 25.85 | 7.25 | 33.10 |
| 1,500.01 – 1,600 | 27.65 | 7.75 | 35.40 |
| 1,600.01 – 1,700 | 29.45 | 8.25 | 37.70 |
| 1,700.01 – 1,800 | 31.25 | 8.75 | 40.00 |
| 1,800.01 – 1,900 | 33.05 | 9.25 | 42.30 |
| 1,900.01 – 2,000 | 34.85 | 9.75 | 44.60 |
| 2,000.01 – 2,100 | 36.65 | 10.25 | 46.90 |
| 2,100.01 – 2,200 | 38.45 | 10.75 | 49.20 |
| 2,200.01 – 2,300 | 40.25 | 11.25 | 51.50 |
| 2,300.01 – 2,400 | 42.05 | 11.75 | 53.80 |
| 2,400.01 – 2,500 | 43.85 | 12.25 | 56.10 |
| 2,500.01 – 2,600 | 45.65 | 12.75 | 58.40 |
| 2,600.01 – 2,700 | 47.45 | 13.25 | 60.70 |
| 2,700.01 – 2,800 | 49.25 | 13.75 | 63.00 |
| 2,800.01 – 2,900 | 51.05 | 14.25 | 65.30 |
| 2,900.01 – 3,000 | 52.85 | 14.75 | 67.60 |
| 3,000.01 – 3,100 | 54.65 | 15.25 | 69.90 |
| 3,100.01 – 3,200 | 56.45 | 15.75 | 72.20 |
| 3,200.01 – 3,300 | 58.25 | 16.25 | 74.50 |
| 3,300.01 – 3,400 | 60.05 | 16.75 | 76.80 |
| 3,400.01 – 3,500 | 61.85 | 17.25 | 79.10 |
| 3,500.01 – 3,600 | 63.65 | 17.75 | 81.40 |
| 3,600.01 – 3,700 | 65.45 | 18.25 | 83.70 |
| 3,700.01 – 3,800 | 67.25 | 18.75 | 86.00 |
| 3,800.01 – 3,900 | 69.05 | 19.25 | 88.30 |
| 3,900.01 – 4,000 | 70.85 | 19.75 | 90.60 |
| 4,000.01 – 4,100 | 72.65 | 20.25 | 92.90 |
| 4,100.01 – 4,200 | 74.45 | 20.75 | 95.20 |
| 4,200.01 – 4,300 | 76.25 | 21.25 | 97.50 |
| 4,300.01 – 4,400 | 78.05 | 21.75 | 99.80 |
| 4,400.01 – 4,500 | 79.85 | 22.25 | 102.10 |
| 4,500.01 – 4,600 | 81.65 | 22.75 | 104.40 |
| 4,600.01 – 4,700 | 83.45 | 23.25 | 106.70 |
| 4,700.01 – 4,800 | 85.25 | 23.75 | 108.00 |
| 4,800.01 – 4,900 | 87.05 | 24.25 | 111.30 |
| 4,900.01 – 5,000 | 88.85 | 24.75 | 113.60 |
Important: The monthly wage ceiling for SOCSO contributions is RM5,000. If an employee earns RM6,000, the contribution is calculated on RM5,000 only — not the full RM6,000. This is different from EPF, which allows contributions above the mandatory ceiling, and PCB, which is calculated on actual earnings.
How to Calculate SOCSO Step by Step
Step 1: Determine the employee's category
Is the employee under 60? → First Category (both schemes, both parties contribute).
Is the employee 60 or above? → Second Category (Employment Injury only, employer contributes, employee pays zero).
Is the employee a foreign worker? → First Category applies if under 60.
Step 2: Identify the insured monthly wage
Take the employee's gross monthly wage. If it exceeds RM5,000, cap it at RM5,000. If it is below RM30, use the "Below RM30" band.
Step 3: Locate the wage band in the contribution table
Find the row in the First Category or Second Category table that corresponds to the employee's wage (or capped wage).
Step 4: Read the employer and employee contribution amounts
The table gives you the exact ringgit amounts. Employer and employee shares are listed separately.
Step 5: Deduct and remit
Deduct the employee's share from their salary. Add the employer's share. Remit the total to PERKESO by the 15th of the following month.
Worked Examples
Example 1: Salary RM3,000, under 60, Malaysian
- Category: First Category
- Insured wage: RM3,000 (below ceiling)
- Wage band: RM2,900.01 – RM3,000
- Employer share: RM52.85
- Employee share: RM14.75
- Total remittance to PERKESO: RM67.60
Payslip entry: Employee SOCSO deduction = RM14.75.
Example 2: Salary RM8,500, under 60
- Category: First Category
- Insured wage: RM5,000 (capped at ceiling)
- Wage band: RM4,900.01 – RM5,000
- Employer share: RM88.85
- Employee share: RM24.75
- Total remittance: RM113.60
Even though the employee earns RM8,500, the contribution is capped at the RM5,000 ceiling. The RM3,500 above the ceiling is not subject to SOCSO.
Example 3: Salary RM1,800, age 63
- Category: Second Category (60 and above)
- Only Employment Injury Scheme applies
- Employer share: 1.25% × RM1,800 = RM22.50 (approximately, based on the Second Category scale)
- Employee share: RM0.00
- Total remittance: RM22.50
The employee pays nothing. The employer covers the full Employment Injury contribution.
Example 4: Salary RM800, under 60
- Category: First Category
- Wage band: RM700.01 – RM800
- Employer share: RM13.25
- Employee share: RM3.75
- Total remittance: RM17.00
SOCSO Contribution for EIS (Employment Insurance System)
In addition to SOCSO, Malaysian employers and employees contribute to EIS (SIP — Sistem Insurans Pekerjaan). EIS is administered by SOCSO but is a separate contribution with its own rates and ceiling.
EIS rates for 2026
- Employer contribution: 0.2% of monthly wage
- Employee contribution: 0.2% of monthly wage
- Wage ceiling: RM5,000
For an employee earning RM3,000:
- Employer EIS: RM3,000 × 0.2% = RM6.00
- Employee EIS: RM3,000 × 0.2% = RM6.00
The combined SOCSO + EIS deduction for this employee would be RM14.75 (SOCSO) + RM6.00 (EIS) = RM20.75.
FAQ
What is the SOCSO contribution ceiling for 2026?
RM5,000 per month. Any salary above RM5,000 is ignored for SOCSO calculation purposes. Both the employer and employee contributions are capped at the RM5,000 ceiling.
Are bonuses included in the SOCSO wage calculation?
No. SOCSO is calculated on the basic monthly wage only — bonuses, commissions, and allowances are excluded. This is a key difference from PCB, which includes irregular payments in the monthly deduction calculation.
How do I calculate SOCSO for an employee who worked only part of the month?
SOCSO is based on the actual wages paid for that month, not a pro-rated equivalent of a full month. If the employee is paid RM1,500 for a partial month, use the RM1,500 band in the contribution table.
Is the SOCSO contribution table different for Sabah and Sarawak?
No. The SOCSO contribution rates and categories are uniform across all of Malaysia — Peninsular, Sabah, Sarawak, and Labuan.
Can I use the same wage band if my employee gets a mid-month salary increment?
Use the actual salary paid in the month. If the increment is effective mid-month and the total pay is higher, use the band corresponding to the total actual payment. Consistency across the year matters less than correct reporting each month.
SOCSO is the simplest of Malaysia's statutory payroll deductions — the calculation is purely a table lookup, with no progressive brackets, no reliefs, and no annual true-up. Once you have the correct category and the correct wage band, the arithmetic is done.
For a complete breakdown of all deductions on a given salary, use the DuitTools salary calculator — it shows SOCSO, EPF, EIS, and PCB in one view.