Statutory Body: PERTUBUHAN KESELAMATAN SOSIAL(PERKESO)
Social Security Organization (SOCSO)
Employer and its employees must be registered with PERKESO not later than 30 days on which the Act becomes applicable to the industry. For the purpose of registration, an employer is required to complete the Employer’s Registration Form (Form 1) together with relevant documents specified.
Registration of New Employees
Employers who take on a new employee is eligible under the Act shall register the employee form 2, regardless of whether the employee ever registered and make contributions to PERKESO while working at a previous employer.
Definition Of Wages
Any remuneration payable in money to an employee is taken as wages for purpose of SOCSO Co.This includes the following payments:
All payments made to an employee paid at an hourly rate, daily rate, weekly rate, piece or task rate is considered as wages. However the following payments are not considered as wages :
i.Payments by an employer to any statutory fund for employees
Coverage of the Workers Social Security Act1969
Employers are required to pay monthly contributions for each eligible employee according to the rate specified under the Employees’ Social Security Act, 1969. These contributions are divided into two (2) types, namely:
3) Payment of Contribution
On 1 January 2018, SOCSO introduced PERKESO ASSIST Portal to facilitate employers to manage their registration, update records and contribution payments.
To use PERKESO ASSIST Portal, employers need to register to obtain the ID for the ASSIST Portal by filling in the form for PERKESO ASSIST Portal ID. PERKESO ASSIST Portal can be accessed by visiting www.perkeso.gov.my and login to ASSIST Portal.
a) Internet Banking
Employers need to be registered and have an account with the appointed banks. Further details can be obtained by contacting the following banks:
b) Bank counters (using ACR reference with contribution data submitted through PERKESO ASSIST Portal).
c) Banks appointed by SOCSO as collection agents for contribution payments are as follows:
i. Maybank Berhad
d) Counters at SOCSO offices (using ACR reference with contribution data submitted through PERKESO ASSIST Portal).
Payment of contributions must be made using cheque or money/postal order only.
Contribution Payment Period
Contributions payable for any month must be paid not later than the 15th day of each succeeding month (eg: contributions for July 2019 must be paid latest by 15 August 2019).
Interest on Late Payment of Contributions
Interest on late payment of contributions will be imposed at a rate of 6% per annum for each day of contributions not paid within the stipulated period.
4) Rate of Contribution
Refer to table of rate of contribution HERE.
*Monthly contribution is subject to the ceiling of the insured wage of RM4,000.00 per month.
The rationale behind enforcement and inspections are to ensure that employers adhere to the Employees’ Social Security Act 1969 and Employees’ Social Security (General) Regulations 1971. An Inspector appointed under Section 12 of Employees’ Social Security Act 1969, shall exercise his powers, perform his functions and discharge his duties in compliance under this Act. All inspection activities will be carried out to registered employers with SOCSO in Malaysia.
Compound are provided for under Section 95A, Employees’ Social Security Act 1969, where a Director General or any empowered officer by the Director General may impose compounds to anyone who has committed offences under Regulation 2 of the Employees’ Social Security (Compounding of Offences) Regulations 2006.
The Employees’ Social Security (Compounding of Offences) Regulations 2006 has been gazetted with effective from 1 March 2006.
Types of Offences That Can Lead to Compound
Employment Insurance System (EIS)
The Employment Insurance System Act 2017 was introduced and came into force on 1 January 2018.
All employers in the private sector are required to pay monthly contributions on behalf of each employee. (Government employees, domestic workers and the self-employed are exempt)
An employee is defined as a person who is employed for wages under a contract of service or apprenticeship with an employer. The contract of service or apprenticeship may be expressed or implied and may be oral or in writing.
All employees aged 18 to 60 are required to contribute. However, employees aged 57 and above who have no prior contributions before the age of 57 are exempt.
Contribution rates are capped at insured salary of RM4000.00.
2) Contribution Rates
The contribution rate for Employment Insurance System (EIS) is 0.2% for the employer and 0.2% for employee based on the employee’s monthly salary.
§ The Contribution rate is based on Section 18 and Schedule 2 of the Employment Insurance System Act 2017.
3) Contribution Payment Procedure
To pay EIS contribution please to obtain your portal ID). Please update your details and generate an ECR for the purpose of paying EIS contributions. Contribution payment methods:
a) Financial Process Exchange (FPX)