Author : Zakwan Rahim
What Most Employees Never Bother to Read on Their Payslip
Every month, a small deduction appears on your payslip under the label SOCSO Malaysia or PERKESO. For most employees, it is a number they glance at and ignore. For most employers, similarly, it sits quietly in the statutory contribution batch alongside EPF and EIS.
But when something goes wrong, a workplace accident, a serious illness, or a permanent disability, SOCSO Malaysia is what pays your medical bills, replaces your income, and in the worst cases, supports your family. Understanding how it works before you need it is therefore not just useful. It is essential.
This guide covers everything employees and employers in Malaysia need to know about SOCSO Malaysia, from what it covers and who qualifies, to contribution rates, benefits, and how to make a claim correctly.
What Is SOCSO Malaysia?
SOCSO Malaysia stands for Social Security Organisation, known in Malay as Pertubuhan Keselamatan Sosial or PERKESO. It operates under the Ministry of Human Resources and was established under the Employees’ Social Security Act 1969.
Think of SOCSO Malaysia as workplace insurance run by the government. Both the employer and employee contribute monthly. In return, SOCSO provides financial protection and medical benefits when an employee suffers a work-related injury, occupational disease, permanent disability, or death. Unlike EPF, which builds savings you will eventually withdraw, SOCSO is pure insurance. You may never need to claim. However, when you do, it matters enormously.
Who Is Eligible for SOCSO Malaysia?
All private sector employees in Malaysia who are employed under a contract of service are eligible for SOCSO Malaysia coverage. Furthermore, every employer with at least one employee must register with PERKESO. There is no minimum headcount exemption.
Who qualifies:
All private sector employees under 60 years old with active contributions qualify. In addition, foreign workers with a valid work pass are also covered under SOCSO Malaysia following recent regulatory updates.
Who does not qualify:
- Self-employed individuals
- Sole proprietors, owners of a partnership and their partners
- Domestic workers and domestic servants
- Permanent employees of the Federal and State Government
Finding your SOCSO number:
For Malaysian citizens, your SOCSO number is the same as your IC number. To confirm it, check your payslip, call the PERKESO hotline at 1300-22-8000, or log in via the ASSIST Portal.
The Two Core Schemes Under SOCSO Malaysia
SOCSO Malaysia operates two distinct schemes. Which scheme applies to your employee determines what coverage they receive and consequently how much is contributed each month.
| Employment Injury Scheme | Invalidity Pension Scheme | |
|---|---|---|
| Who it covers | All eligible employees | Employees under 60 contributing before age 55 |
| What it covers | Work accidents, commuting accidents, occupational diseases | Permanent invalidity or death from any cause |
| When it applies | Only work-related incidents | 24-hour coverage regardless of cause |
| Who contributes | Both employer and employee | Both employer and employee |
Category 1 employees are those under 60 who began contributing before age 55. They receive coverage under both schemes. As a result, both employer and employee contribute.
Category 2 employees are those aged 60 and above, or those already receiving an Invalidity Pension. They receive Employment Injury Scheme coverage only. Consequently, only the employer contributes for this group.
SOCSO Malaysia Contribution Rates
The SOCSO Malaysia wage ceiling is RM6,000 per month, effective from 1 October 2024. Employees earning above RM6,000 are therefore subject to contributions based on the RM6,000 ceiling.
For Category 1 employees, the employer pays 1.75% of monthly wages and the employee pays 0.5%. For Category 2 employees, only the employer contributes at 1.25%, since Invalidity coverage no longer applies to this group.
SOCSO vs EIS: Not the Same Thing
Many employees and employers confuse SOCSO and EIS. Both are collected through PERKESO, however they are separate contributions under different legislation.
| SOCSO | EIS | |
|---|---|---|
| Legislation | Employees’ Social Security Act 1969 | Employment Insurance System Act 2017 |
| Purpose | Work injury and invalidity protection | Financial support after job loss |
| Employer rate | 1.75% (Cat 1) or 1.25% (Cat 2) | 0.2% |
| Employee rate | 0.5% (Cat 1) or nil (Cat 2) | 0.2% |
| Wage ceiling | RM6,000 | RM6,000 |
What Benefits Does SOCSO Malaysia Provide?
What Benefits Does SOCSO Malaysia Provide?
SOCSO Malaysia provides seven categories of benefit across its two schemes. Here is a clear breakdown of each:
Under the Employment Injury Scheme:
1. Medical Benefit. Free medical treatment at SOCSO panel clinics, government hospitals, and government clinics for work-related injuries or occupational diseases. Treatment at non-SOCSO facilities, however, requires reimbursement documentation.
2. Temporary Disablement Benefit. A cash payment equivalent to 80% of the employee’s daily wage for every day of certified medical leave, provided the leave covers at least four consecutive days.
3. Permanent Disablement Benefit. A lump sum or pension payment for employees who suffer permanent physical impairment as a result of a work-related accident or occupational disease. The benefit rate is 90% of daily wage.
4. Constant Attendance Allowance. An additional allowance for employees who require constant care and attendance as a result of permanent total disablement.
5. Dependants’ Benefit. Financial support paid to the dependants of an employee who dies as a result of a work-related injury or occupational disease.
Under the Invalidity Pension Scheme:
6. Invalidity Pension. A monthly pension for employees who become permanently invalid due to any cause, not limited to work-related incidents. This is 24-hour coverage that applies regardless of how the condition arose.
7. Survivors’ Pension. Financial support for the dependants of an employee who dies from any cause, provided the employee was an active contributor under the Invalidity Pension Scheme.
What Incidents Does SOCSO Malaysia Cover?
Under the Employment Injury Scheme, SOCSO Malaysia covers four categories of incident:
- Workplace accidents. Any injury sustained while carrying out official duties at the place of work.
- Commuting accidents. Accidents that occur on the direct route between home and the workplace. This is one of the most commonly missed facts about SOCSO Malaysia coverage, and consequently one of the most important to know.
- Authorised work journey accidents. Injuries sustained while travelling for an official work-related reason such as a client visit or business trip.
- Occupational diseases. Diseases that develop directly as a result of the employee’s occupation, such as hearing loss from prolonged industrial noise exposure.
How to Make a Claim: Step by Step
For General Medical Benefits
Submit the following documents to the nearest SOCSO branch or through the employer:
- Accident report Form 21 or occupational disease report Form PKS 68 or PKS 69
- Claims Form 10
- Employer’s identification letter
- Work attendance summary
- Medical leave certificate
- Copy of employee IC
- Police report and sketch map of trip for commuting accidents only
Once the claim is approved, treatment at SOCSO panel clinics, government hospitals, and government clinics is free of charge.
For Treatment at Non-SOCSO Facilities
If treated at a non-panel facility, submit the following additional documents to the nearest SOCSO branch:
- Reimbursement Travel Claims Form PKS (P) 24
- Reimbursement Payment Claim Report Form PKS (P) 26
- Original receipt of treatment
- Copy of appointment card
- Copy of medical report where applicable
Note that SOCSO determines the reimbursement amount for non-panel treatment. As a result, the reimbursed amount may not cover the full cost of private treatment.
For Permanent Disablement Claims
Employees who suffer permanent disablement from a workplace accident can apply regardless of their current ability to work. Bring the following to a SOCSO branch office together with a reference letter from the medical board:
- Medical report from the treating facility
- Completed application form
- Copy of IC
- Claims Form 10
- Form PKS (F) 1 with SOCSO contribution details and salary statement
- Employee’s bank account details for direct benefit deposit
The benefit rate for permanent disablement is 90% of the employee’s daily wage. If dissatisfied with the medical board’s decision, employees may furthermore file an appeal within 90 days from the date of notice.tice.
Employer Responsibilities Under SOCSO Malaysia
Employers carry legal obligations that go beyond simply deducting and remitting contributions. Specifically, the law requires:
- Register every eligible employee with PERKESO from the first day of employment
- Submit monthly contributions accurately and on time through the ASSIST Portal
- Report workplace accidents and occupational diseases promptly
- Compile and submit complete claim documentation when an employee needs to make a SOCSO Malaysia claim
- Ensure contribution calculations reflect the correct wage ceiling of RM6,000
Failure to register employees, submit contributions late, or underreport wages consequently exposes the employer to penalties and legal action under the Employees’ Social Security Act 1969.
Manage Contributions Without the Compliance Risk with SunFish HR by DataOn
For HR teams managing SOCSO Malaysia contributions across a growing workforce, accuracy is not optional. Incorrect contribution calculations, missed submissions, or inaccurate employee records create compliance exposure and consequently delay claims at exactly the moment employees need them most.
SunFish HR, developed by DataOn, automates SOCSO Malaysia contribution calculations as part of a fully integrated payroll engine. SunFish HR applies the correct contribution rates for Category 1 and Category 2 employees automatically and calculates based on the current RM6,000 wage ceiling. Furthermore, SOCSO, EIS, EPF, and PCB all process within the same payroll cycle. As a result, HR teams avoid the manual errors that create compliance gaps and submission delays.
Employee records within SunFish HR maintain accurate and up-to-date SOCSO contribution details, IC numbers, bank account information, and salary history all in one place. Therefore, when an employee needs to file a SOCSO Malaysia claim, HR teams access everything they need immediately without searching through disconnected files or spreadsheets.
DataOn has spent over two decades building SunFish HR for the statutory compliance realities of organisations across Southeast Asia, including Malaysia’s specific requirements under EPF, SOCSO, EIS, PCB, and the Employment Act 1955. SOCSO Malaysia compliance is consequently one of many statutory obligations that SunFish HR handles accurately and consistently across every payroll cycle.
Media Contact: Akmal Razman, Marketing Executive at SunFish HR Malaysia by Dataon.com | sunfish.malaysia@dataon.com
FAQs
- What is the SOCSO wage ceiling in 2026?
The SOCSO wage ceiling is RM6,000 a month, the same as EIS. This has been in place since 1 October 2024, when PERKESO raised it from RM5,000. Employees earning above RM6,000 still contribute, but the calculation stops at the RM6,000 mark rather than scaling with their full salary.
- Does a foreign employer need to register with SOCSO?
Yes. Any employer, local or foreign, operating in Malaysia and hiring eligible employees must register with SOCSO, since registration is mandatory under the Employees’ Social Security Act 1969 regardless of where the company is headquartered.
- How much SOCSO does an employer pay on a RM6,000 salary?
For a Category 1 employee at the RM6,000 ceiling, the employer pays roughly RM105 and the employee pays roughly RM30, for a combined monthly contribution of about RM135. This is the maximum SOCSO contribution under current rates, since RM6,000 is the highest wage band the calculation applies to.
- Does SOCSO cover accidents that happen on the way to work?
Yes. Commuting accidents on the direct route between home and the workplace are covered under the Employment Injury Scheme, alongside accidents at the workplace itself and injuries during authorised work travel. This is one of the more overlooked parts of SOCSO coverage, since many employees assume it only applies on site.
- How long do employees have to appeal a SOCSO disablement decision?
Employees have 90 days from the date of the medical board’s notice to file an appeal if they disagree with a permanent disablement assessment. Missing this window generally means the original decision stands, so timing matters for anyone considering a challenge.
