- Overview of SOCSO
SOCSO (Social Security Organization), also known as PERKESO (Pertubuhan Keselamatan Sosial), is a Malaysian government agency that was established to provide social security protection to employees under the Employees’ Social Security Act, 1969.
- What is the function of SOCSO
The functions of SOCSO are as follows:
- Registration of employers and employees
- Collection of contributions from employers and employees
- Payment of benefits to workers and/or their dependents when tragedy strikes
- Provision of physical and vocational rehabilitation benefits
- Promotion of awareness of occupational safety and health
- 2 different schemes under SOCSO
What are the differences between the two SOCSO categories?
SOCSO has two insurance schemes for its members, the "Employment Injury Scheme" which provides coverage for workplace accidents, and the "Invalidity Scheme" which provides coverage to employees who suffer from invalidity or death due to any cause and not related to their employment.
Contributions to SOCSO are divided into two categories, as follows:
Employment Injury and Invalidity Scheme
- All Malaysian and permanent resident employees younger than 60 years old contribute under this category, unless they began contributing at the age of 55 or above.
- Under this category, every month, the employer contributes a value based on the employee's monthly salary up to a maximum value of RM 69.05, and the employee contributes up to a maximum value of RM 19.75.
Employment Injury Scheme
- For employees who are 60 years old and above.
- For employees who began contributing to SOCSO at the age of 55 or above.
- For insured people receiving an invalidity pension while still working, and receiving less than one-third of their average monthly salary before invalidity.
- For foreign workers
- Under this category, the employee does not contribute, and every month, the employer contributes a value equivalent to 1.25% of the employee's monthly salary, up to a maximum value of RM 49.40.
Current contribution to Perkeso (effective June 2016 salary)
Please see the table with new rates of contribution now due on all employees who are employed under a contract of service or apprenticeship in the private sector, contractual or temporary staff of Federal/State Government as well as Federal/State Statutory Bodies. The contribution will be capped at a monthly salary of RM4,000.00.
- Elaborate SSFW number
With effect from 1st January 2019, foreign employees are required to be covered under SOCSO's Employment Injury Scheme. Under that category, only the employer contributes. Therefore, the employer is required to register their foreign employees via the Perkeso Assist Portal, after which Perkeso will generate a Social Security Foreign Worker Number (SSFW No.).
What is the deadline for the payment of SOCSO?
If contributions are made later than the 15th of the following month (if the 15th is a holiday the deadline will be the last working day before the 15th), a fine of 6% per annum for each day overdue will be charged. The minimum fine is RM 5, hence if the monthly fine is calculated to be less than RM5 it will be charged at RM 5 per month.
How to pay for SOCSO?
There are a few ways of paying your SOCSO contributions:
- Internet Banking
Several banks offer payroll bulk payment services. Typically the entire process will be online. Contact your bank for more details.
Please note that iPERKESO is no longer available for SOCSO contribution payment activities and you are advised to switch to the use of the ASSIST PORTAL. The function for iPERKESO has been blocked effective March 1, 2019.
- Perkeso Assist Portal
The Perkeso Assist Portal is a portal that allows employers to manage company details, employees’ and monthly contribution information for Socso and EIS. For more information on registering for Perkeso Assist Portal, please view this link.
The JustLogin app generates the Socso text file for online submission via the Assist Portal.
Once you log in to the assist portal, click on 'My Sites' and choose SOCSO Contribution.
Next, you proceed to Employer Contribution and click on Text File as per the image below. Once you upload the SOCSO_Assist_Portal.txt file generated via JustLogin you can proceed to pay with FPX.
Know more about Malaysian Payroll Statutory Contributions:
EPF - https://support.justlogin.com/hc/en-us/articles/4404842471693-EPF-JustLogin-Malaysia-Payroll
EIS - https://support.justlogin.com/hc/en-us/articles/4404834587661-EIS-JustLogin-Malaysia-Payroll
PCB - https://support.justlogin.com/hc/en-us/articles/4404835521933-PCB-JustLogin-Malaysia-Payroll
Form to be submitted Yearly by Malaysian companies - https://support.justlogin.com/hc/en-us/articles/4404836735245-Forms-that-Malaysian-Companies-need-to-Prepare