SOCSO Contribution Rates Malaysia 2026: Updated Table, Benefits, and Employer Obligations
Complete SOCSO Malaysia contribution rates table for 2026 under the Employment Insurance System Act. Employer and employee contribution percentages by salary band, all 7 SOCSO benefit categories explained, and how PERKESO coverage protects workers against workplace injury, invalidity, and unemployment.
If you look at your payslip, you will see a line item labelled SOCSO or PERKESO. For most employees it is a small number — a few ringgit each month. For employers it goes unnoticed as part of the statutory contribution batch alongside EPF and EIS.
But when something goes wrong — a workplace accident, a long-term illness, permanent disability — SOCSO is what pays your medical bills, replaces your income, and supports your family. It is the social safety net that most people do not think about until they need it.
This guide covers the updated SOCSO contribution rates for 2026, the full salary-based contribution table, all seven benefit categories, and what both employers and employees are legally required to know.
Use the DuitTools salary calculator to see your full statutory deduction breakdown — EPF, SOCSO, EIS, and PCB — for any gross salary.
SOCSO Overview: Two Main Schemes
SOCSO (Social Security Organisation, or PERKESO in Malay) administers two core schemes under the Employees' Social Security Act 1969 (Act 4):
| Scheme | Coverage | Who Pays |
|---|---|---|
| Employment Injury Scheme (EIS) | Workplace accidents, commuting accidents, occupational diseases | Employer only |
| Invalidity Pension Scheme (IPS) | Permanent disability or death from any cause (not just work-related) | Employer + Employee |
The Employment Injury Scheme is the older of the two and is mandatory for all Malaysian employees earning up to RM5,000. The Invalidity Pension Scheme has a separate contribution schedule and was extended to workers earning above RM5,000 under the Self-Employment Social Security Act 2017.
Separately, the Employment Insurance System (EIS) administered by SOCSO provides temporary income for retrenched workers. We cover EIS in detail in our EIS guide.
SOCSO Contribution Rates Table 2026
The SOCSO contribution is based on a salary band system. Each band has a fixed monthly contribution amount for both the employer and employee portions. The rates apply to monthly wages (basic salary + fixed allowances, excluding overtime and bonuses).
Employment Injury Scheme (Employer Contribution Only)
| Monthly Wage Band (RM) | Employer Contribution (RM/month) |
|---|---|
| Below 30 | 0.40 |
| 30.01 – 50 | 0.70 |
| 50.01 – 70 | 1.00 |
| 70.01 – 100 | 1.30 |
| 100.01 – 140 | 1.70 |
| 140.01 – 200 | 2.10 |
| 200.01 – 300 | 2.70 |
| 300.01 – 400 | 3.30 |
| 400.01 – 500 | 3.90 |
| 500.01 – 600 | 4.50 |
| 600.01 – 700 | 5.10 |
| 700.01 – 800 | 5.70 |
| 800.01 – 900 | 6.30 |
| 900.01 – 1,000 | 6.90 |
| 1,000.01 – 1,100 | 7.50 |
| 1,100.01 – 1,200 | 8.10 |
| 1,200.01 – 1,300 | 8.70 |
| 1,300.01 – 1,400 | 9.30 |
| 1,400.01 – 1,500 | 9.90 |
| 1,500.01 – 1,600 | 10.50 |
| 1,600.01 – 1,700 | 11.10 |
| 1,700.01 – 1,800 | 11.70 |
| 1,800.01 – 1,900 | 12.30 |
| 1,900.01 – 2,000 | 12.90 |
| 2,000.01 – 2,100 | 13.50 |
| 2,100.01 – 2,200 | 14.10 |
| 2,200.01 – 2,300 | 14.70 |
| 2,300.01 – 2,400 | 15.30 |
| 2,400.01 – 2,500 | 15.90 |
| 2,500.01 – 2,600 | 16.50 |
| 2,600.01 – 2,700 | 17.10 |
| 2,700.01 – 2,800 | 17.70 |
| 2,800.01 – 2,900 | 18.30 |
| 2,900.01 – 3,000 | 18.90 |
| 3,000.01 – 3,100 | 19.50 |
| 3,100.01 – 3,200 | 20.10 |
| 3,200.01 – 3,300 | 20.70 |
| 3,300.01 – 3,400 | 21.30 |
| 3,400.01 – 3,500 | 21.90 |
| 3,500.01 – 3,600 | 22.50 |
| 3,600.01 – 3,700 | 23.10 |
| 3,700.01 – 3,800 | 23.70 |
| 3,800.01 – 3,900 | 24.30 |
| 3,900.01 – 4,000 | 24.90 |
| 4,000.01 – 4,100 | 25.50 |
| 4,100.01 – 4,200 | 26.10 |
| 4,200.01 – 4,300 | 26.70 |
| 4,300.01 – 4,400 | 27.30 |
| 4,400.01 – 4,500 | 27.90 |
| 4,500.01 – 4,600 | 28.50 |
| 4,600.01 – 4,700 | 29.10 |
| 4,700.01 – 4,800 | 29.70 |
| 4,800.01 – 4,900 | 30.30 |
| 4,900.01 – 5,000 | 30.90 |
For wages above RM5,000, the Employment Injury Scheme contribution is capped at RM30.90/month (employer only), calculated on the RM5,000 ceiling.
Invalidity Pension Scheme (Employer + Employee)
| Monthly Wage Band (RM) | Employer (RM) | Employee (RM) | Total (RM) |
|---|---|---|---|
| Below 30 | 0.50 | 0.20 | 0.70 |
| 30.01 – 50 | 0.90 | 0.30 | 1.20 |
| 50.01 – 70 | 1.30 | 0.40 | 1.70 |
| 70.01 – 100 | 1.70 | 0.50 | 2.20 |
| 100.01 – 140 | 2.10 | 0.70 | 2.80 |
| 140.01 – 200 | 2.70 | 0.90 | 3.60 |
| 200.01 – 300 | 3.50 | 1.10 | 4.60 |
| 300.01 – 400 | 4.30 | 1.40 | 5.70 |
| 400.01 – 500 | 5.10 | 1.60 | 6.70 |
| 500.01 – 600 | 5.90 | 1.90 | 7.80 |
| 600.01 – 700 | 6.70 | 2.10 | 8.80 |
| 700.01 – 800 | 7.50 | 2.40 | 9.90 |
| 800.01 – 900 | 8.30 | 2.60 | 10.90 |
| 900.01 – 1,000 | 9.10 | 2.90 | 12.00 |
| 1,000.01 – 1,100 | 9.90 | 3.10 | 13.00 |
| 1,100.01 – 1,200 | 10.70 | 3.40 | 14.10 |
| 1,200.01 – 1,300 | 11.50 | 3.60 | 15.10 |
| 1,300.01 – 1,400 | 12.30 | 3.90 | 16.20 |
| 1,400.01 – 1,500 | 13.10 | 4.10 | 17.20 |
| 1,500.01 – 1,600 | 13.90 | 4.40 | 18.30 |
| 1,600.01 – 1,700 | 14.70 | 4.60 | 19.30 |
| 1,700.01 – 1,800 | 15.50 | 4.90 | 20.40 |
| 1,800.01 – 1,900 | 16.30 | 5.10 | 21.40 |
| 1,900.01 – 2,000 | 17.10 | 5.40 | 22.50 |
| 2,000.01 – 2,100 | 17.90 | 5.60 | 23.50 |
| 2,100.01 – 2,200 | 18.70 | 5.90 | 24.60 |
| 2,200.01 – 2,300 | 19.50 | 6.10 | 25.60 |
| 2,300.01 – 2,400 | 20.30 | 6.40 | 26.70 |
| 2,400.01 – 2,500 | 21.10 | 6.60 | 27.70 |
| 2,500.01 – 2,600 | 21.90 | 6.90 | 28.80 |
| 2,600.01 – 2,700 | 22.70 | 7.10 | 29.80 |
| 2,700.01 – 2,800 | 23.50 | 7.40 | 30.90 |
| 2,800.01 – 2,900 | 24.30 | 7.60 | 31.90 |
| 2,900.01 – 3,000 | 25.10 | 7.90 | 33.00 |
| 3,000.01 – 3,100 | 25.90 | 8.10 | 34.00 |
| 3,100.01 – 3,200 | 26.70 | 8.40 | 35.10 |
| 3,200.01 – 3,300 | 27.50 | 8.60 | 36.10 |
| 3,300.01 – 3,400 | 28.30 | 8.90 | 37.20 |
| 3,400.01 – 3,500 | 29.10 | 9.10 | 38.20 |
| 3,500.01 – 3,600 | 29.90 | 9.40 | 39.30 |
| 3,600.01 – 3,700 | 30.70 | 9.60 | 40.30 |
| 3,700.01 – 3,800 | 31.50 | 9.90 | 41.40 |
| 3,800.01 – 3,900 | 32.30 | 10.10 | 42.40 |
| 3,900.01 – 4,000 | 33.10 | 10.40 | 43.50 |
The IPS contribution ceiling is RM4,000. For wages above RM4,000, contributions are capped at RM33.10 (employer) + RM10.40 (employee) = RM43.50/month total.
Important note for employers on salaries above RM5,000: The IPS was extended to cover workers earning above RM5,000 under the 2017 Act. The contribution is calculated on the ceiling of RM4,000 and is capped at RM43.50/month. The Employment Injury Scheme ceiling remains at RM5,000.
What Does SOCSO Cover? All 7 Benefit Categories
SOCSO provides seven categories of benefits. Each is activated by a different type of claim.
1. Medical Benefit
Covers treatment at any SOCSO-registered clinic or government hospital for work-related injuries or occupational diseases. No cost to the worker — SOCSO pays the provider directly. Coverage is unlimited for Employment Injury Scheme claims (as medically necessary).
2. Temporary Disablement Benefit (TDB)
If you are certified unfit for work by a medical practitioner due to a workplace injury or occupational disease, SOCSO pays 80% of your daily wage for the duration of your medical leave, up to a maximum period (subject to the SOCSO daily benefit ceiling). The employer must continue paying full salary during the first few days; SOCSO reimburses the employer or pays the worker directly during the TDB period.
3. Permanent Disablement Benefit (PDB)
If a workplace injury or disease results in permanent disability assessed at a percentage by the SOCSO medical board, the worker receives either a lump sum or a lifetime monthly pension, depending on the assessed percentage and contribution history.
- Less than 100% disability: lump sum based on percentage × reference salary × contribution factor
- 100% disability (total permanent disablement): monthly pension equal to 90% of average assumed monthly wage, plus a lump sum
4. Dependants' Benefit
If a worker dies due to a workplace injury or occupational disease, their legal dependants (spouse, children under 21, or dependent parents) receive a monthly pension. The pension is calculated as 90% of the deceased worker's average assumed monthly wage, distributed among eligible dependants.
5. Invalidity Pension
Under the Invalidity Pension Scheme, if a worker is certified as permanently unable to earn (any cause — not just workplace), they receive a monthly invalidity pension. The amount depends on the worker's contribution history and age at invalidity.
To qualify, the worker must have at least 24 months of SOCSO contributions and be below 60 at the time of invalidity.
6. Survivors' Pension
Under the Invalidity Pension Scheme, if a worker dies from any cause (not limited to workplace), their dependants receive a monthly survivors' pension. The same 24-month contribution requirement applies.
The pension is 50% of the invalidity pension the worker would have received, split among eligible dependants.
7. Funeral Benefit
A one-time funeral grant of up to RM2,000 paid to the person who bears the funeral expenses of a deceased SOCSO-covered worker. Available under both schemes.
SOCSO Coverage: Who Is Exempt?
Not everyone working in Malaysia is covered by SOCSO. The main categories exempt from mandatory SOCSO coverage include:
- Foreign domestic workers (maids) — not covered, but employers are encouraged to purchase private insurance
- Self-employed individuals — not automatically covered but can register under the Self-Employment Social Security Scheme (SESSS) launched in 2017
- Government employees (they are covered under the separate Pencen scheme)
- Business owners and partners who do not draw a salary from the company
- Workers aged 60 and above at the time of first employment
Employer Obligations and Penalties
Under Act 4, every employer with at least one eligible employee must:
- Register the business with PERKESO within 30 days of hiring the first employee
- Register each new employee within 30 days of their start date
- Deduct the employee's share of SOCSO from wages monthly and remit both employer and employee shares to PERKESO
- Report any workplace accident to PERKESO within 48 hours using Form 21
Penalties for non-compliance:
- Late registration: fine up to RM5,000 or imprisonment up to 6 months
- Late or non-payment of contributions: fine up to RM10,000 or imprisonment up to 2 years
- Failure to report workplace accident: fine up to RM10,000 or imprisonment up to 2 years
Read our full statutory compliance guide: Employer statutory obligation guide.
How to Claim SOCSO Benefits
The claims process differs slightly by benefit type, but the general steps are:
- Report the incident — employer files Form 21 (workplace accident) or worker files directly at any PERKESO office
- Medical assessment — attend the SOCSO panel clinic or government hospital for evaluation
- Submit claim forms — PERKESO provides the relevant forms based on the benefit type
- SOCSO medical board review — for permanent disablement and invalidity claims, a medical board assesses the degree of disablement
- Payment — approved claims are paid within 14-30 days depending on benefit type
Keep copies of all medical reports, police reports (for accidents), and employment records. Having the documentation ready significantly speeds up the claims process.
Frequently Asked Questions
Does SOCSO cover me if I work remotely from home? Yes. The Employment Injury Scheme covers injuries that occur "in the course of employment." If you are working from home under your employer's direction and suffer an injury while performing work duties, it is generally covered. However, you should report the incident to your employer immediately and document the work-related nature of the injury.
What is the difference between SOCSO and EIS? SOCSO covers workplace injuries, occupational diseases, and invalidity. EIS (Employment Insurance System) covers retrenchment — temporary income replacement if you are laid off. You pay a separate EIS contribution, which appears on your payslip. Both are administered by PERKESO but are funded and claimed separately.
Can I still claim SOCSO if my employer did not register me? Yes. Under Act 4, SOCSO coverage applies even if the employer failed to register the employee. PERKESO will process your claim and separately pursue the employer for unpaid contributions and penalties. Do not assume you are ineligible just because your employer skipped registration.
Are contract and probation employees covered by SOCSO? Yes. SOCSO covers all employees under a contract of service or apprenticeship, including probationers, fixed-term contractors, and part-time workers. The only requirement is that the worker is an employee (not a genuine independent contractor) and earns wages.
How do I check my SOCSO contribution history? Log in to the PERKESO Assist portal (perkeso.gov.my) or visit any PERKESO branch with your NRIC. You can request a contribution statement showing all payments made by your employer.
Does the SOCSO salary ceiling ever change? The ceiling has been adjusted over the years. The current ceiling for Employment Injury Scheme is RM5,000 and Invalidity Pension Scheme is RM4,000. Any changes would be announced during the annual national Budget. Follow PERKESO's official channels for updates.
Check your full monthly salary breakdown — EPF, SOCSO, EIS, and PCB — in seconds with the DuitTools salary calculator. Enter your gross salary and see exactly what should appear on your payslip each month.