SOCSO Contribution: A Comprehensive Guide to Employer and Employee Rates

For employers and employees seeking clarity on SOCSO contribution rates 2026, this guide provides a comprehensive understanding of the financial obligations associated with social security. As businesses navigate the complexities of employee benefits, a solid grasp of SOCSO contribution is integral for compliance and financial planning.

For a more reliable and simpler SOCSO calculation, you may use SOCSO calculator or automate monthly SOCSO calculation with a free HR software - HR.my.

Note: Effective 1 October 2024, PERKESO will enforce a new wage ceiling for contributions from RM5,000 to RM6,000 per month. The contribution amount that apply to employees with salaries exceeding RM5,000 per month is stated in the Third Schedule, Act 4 and the Second Schedule, Act 800. For employees with salaries exceeding RM6,000 per month, the contribution amount is subject to the wage ceiling of RM6,000. Accordingly, the contribution payment for the month of October 2024 and the subsequent months shall be made by the employer according to the new wage ceiling.

Categories of SOCSO Contribution

Understanding the SOCSO fund now involves two contribution categories, with the additional Non-Employment Injury Scheme, also known as SKBBK or LINDUNG 24 JAM, taking effect from 1 June 2026. The first category covers the Employment Injury Scheme, the Invalidity Scheme and the Non-Employment Injury Scheme. This category generally applies to employees below the age of 60, except for employees who have reached 55 years of age and had no prior SOCSO contributions before turning 55 due to non-eligibility under the Employees’ Social Security Act 1969. Under this category, the employer contributes at 1.75% of the employee’s monthly wages, covering the Employment Injury Scheme. The employee contributes 0.5% for the Invalidity Scheme, plus the additional Non-Employment Injury Scheme contribution. The Non-Employment Injury Scheme contribution is fully borne by the employee and is implemented in phases starting from 1 June 2026: 0.75% for Years 1–2, 1.00% for Years 3–5, and 1.25% from Year 6 onwards. Employers are responsible for deducting the employee’s share and paying the total contribution to SOCSO based on the applicable monthly wage category.

SOCSO Table Category 1

The second category covers the Employment Injury Scheme and the Non-Employment Injury Scheme. This category applies to specific groups, including employees aged 60 and above, as well as employees aged 55 and above who had no prior SOCSO contributions before turning 55. Under this category, the employer contributes at 1.25% of the employee’s monthly wages for the Employment Injury Scheme. The employee contributes only to the Non-Employment Injury Scheme, which is fully borne by the employee and follows the same phased implementation rate starting from 1 June 2026: 0.75% for Years 1–2, 1.00% for Years 3–5, and 1.25% from Year 6 onwards. The employer is required to deduct and remit the employee’s Non-Employment Injury Scheme contribution together with the employer’s contribution according to the applicable SOCSO wage category.

SOCSO Table Category 2

Category 1 SOCSO Contribution Table (Employment Injury Scheme, Invalidity Scheme and Non-Employment Injury Scheme (LINDUNG 24 JAM))

Category 2 SOCSO Contribution Table (Employment Injury Scheme and Non-Employment Injury Scheme (LINDUNG 24 JAM))

In conclusion, mastering the nuances of SOCSO contribution is crucial for employers and employees alike. By unraveling the intricacies of the contribution rates and categories, businesses can ensure compliance and make informed decisions that align with both regulatory requirements and financial objectives. Stay tuned for updates on SOCSO contribution guidelines and empower your workforce with the knowledge needed for a secure and compliant future.