The Social Security Organisation (SOCSO), known in Bahasa Malaysia as Pertubuhan Keselamatan Sosial (PERKESO), plays a vital role in providing social security protection to employees in Malaysia. Both employers and employees contribute to SOCSO, ensuring coverage for employment injuries, invalidity, and, from 1 June 2026, non-employment injuries under the Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM). Understanding how SOCSO contributions affect your net salary is crucial for both employees and employers.
What is SOCSO (PERKESO) and Its Importance?
SOCSO was established to provide social security protection by administering several key schemes:
- Employment Injury Scheme: Provides protection against workplace accidents, occupational illnesses, and commuting accidents.
- Invalidity Scheme: Offers coverage for invalidity or death not related to employment.
- Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM): Provides additional protection for accidents that are not caused by employment, effective from 1 June 2026.
These schemes offer various benefits, including medical care, temporary and permanent disability benefits, dependants' benefits, invalidity benefits, and rehabilitation services.
SOCSO Contribution Categories
There are two main categories for SOCSO contributions, now updated to include the Non-Employment Injury Scheme:
- First Category: This category covers the Employment Injury Scheme, the Invalidity Scheme, and the Non-Employment Injury Scheme. It is applicable to employees who are below 60 years old, except for those who have attained 55 years of age and have no prior contributions before reaching 55 due to non-eligibility under the Employees’ Social Security Act 1969. Both employer and employee must contribute.
- Second Category: This category covers the Employment Injury Scheme and the Non-Employment Injury Scheme. It is applicable to employees who are 60 years old and above, or employees aged 55 and above who have no prior SOCSO contributions. The employer contributes for the Employment Injury Scheme, while the employee contributes for the Non-Employment Injury Scheme.
SOCSO Contribution Rates
The contribution rates for SOCSO are as follows:
- Employment Injury Scheme, Invalidity Scheme and Non-Employment Injury Scheme (First Category):
- Employer Contribution: 1.75% of the employee's monthly wages for the Employment Injury Scheme.
- Employee Contribution: 0.5% of the employee's monthly wages for the Invalidity Scheme, plus the employee contribution for the Non-Employment Injury Scheme.
- Employment Injury Scheme and Non-Employment Injury Scheme (Second Category):
- Employer Contribution: 1.25% of the employee's monthly wages for the Employment Injury Scheme.
- Employee Contribution: Non-Employment Injury Scheme contribution only.
The Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM) contribution is fully borne by employees and is implemented in phases starting from 1 June 2026:
- Phase 1: 0.75% for Years 1–2.
- Phase 2: 1.00% for Years 3–5.
- Phase 3: 1.25% from Year 6 onwards.
Although the SKBBK / LINDUNG 24 JAM contribution is fully borne by employees, employers are responsible for deducting the contribution from employees' wages and paying it to SOCSO on behalf of employees. PERKESO states that the SKBBK contribution is mandatory, fully borne by employees, and paid by employers on employees’ behalf. Contributions are capped based on the maximum monthly salary of RM6,000, even if the employee earns more. PERKESO confirms that employees earning above RM6,000 are subject to the RM6,000 wage ceiling for contribution purposes.
How SOCSO Contributions Affect Your Net Salary
SOCSO contributions are part of the statutory deductions from your gross salary. With the introduction of SKBBK / LINDUNG 24 JAM from 1 June 2026, employees should note that their SOCSO-related deduction may increase because the Non-Employment Injury Scheme contribution is borne by the employee. Here's how statutory deductions generally impact your net salary:
- Gross Salary: Your total earnings before any deductions.
- Less EPF Contribution: Employee's contribution to the Employees Provident Fund.
- Less SOCSO Contribution: Employee's SOCSO contribution, including Invalidity Scheme contribution if applicable and SKBBK / LINDUNG 24 JAM contribution from 1 June 2026.
- Less EIS Contribution: Employee's contribution to the Employment Insurance System.
- Less Income Tax (PCB) Deductions: Based on your chargeable income.
- Net Salary: The amount you take home after all deductions.
For example, under the updated SOCSO table effective from June 2026, if your gross salary is RM3,000 and you fall under the First Category:
- Employee Invalidity Scheme Contribution: RM14.75
- Employee SKBBK / LINDUNG 24 JAM Contribution: RM22.15
- Total Employee SOCSO-Related Contribution: RM36.90
- Net Salary Before Other Deductions: RM3,000 - RM36.90 = RM2,963.10
Use our net salary calculator Malaysia to automatically compute your take-home pay after all deductions.
Benefits of SOCSO Contributions
Contributing to SOCSO provides you with a safety net in case of unforeseen circumstances:
- Medical Benefits: Access to medical treatment at SOCSO's panel clinics and hospitals.
- Temporary Disablement Benefit: Financial aid if you're temporarily unable to work due to an employment injury.
- Permanent Disablement Benefit: Compensation for permanent disabilities resulting from workplace accidents.
- Dependants' Benefit: Financial support for dependants in the event of the employee's death due to employment injury.
- Invalidity Pension: Monthly pension for employees suffering from invalidity not related to employment.
- Non-Employment Injury Protection: Additional protection under SKBBK / LINDUNG 24 JAM for qualifying accidents that are not caused by employment.
How to Check Your SOCSO Contributions
You can monitor your SOCSO contributions through the following methods:
- Online Portal: Register and log in to the ASSIST Portal on the SOCSO website to view your contribution history.
- SOCSO Offices: Visit any SOCSO office for assistance with your contribution statements.
SOCSO Claims and Procedures
If you need to make a claim, follow these steps:
- Report the Incident: Inform your employer immediately about any workplace injury, occupational illness, or qualifying accident.
- Seek Medical Attention: Visit a SOCSO panel clinic or hospital for treatment where applicable.
- Submit Claim Forms: Complete and submit the required claim forms through your employer or the relevant SOCSO channel.
- Await Approval: SOCSO will assess your claim and notify you of the outcome.
For detailed information on the claims process, refer to the SOCSO website or contact their customer service.
Calculate Your Net Salary with SOCSO Contributions
Understanding how SOCSO contributions impact your net salary is essential. With the introduction of SKBBK / LINDUNG 24 JAM from 1 June 2026, employees should also consider the additional employee-borne Non-Employment Injury Scheme contribution. Use our salary calculator Malaysia to determine your take-home pay after SOCSO and other statutory deductions like EPF, EIS, and income tax.
Click here to access the SOCSO calculator
Conclusion
SOCSO contributions are a crucial part of Malaysia's social security system, offering protection and benefits to employees. With the addition of the Non-Employment Injury Scheme (SKBBK / LINDUNG 24 JAM) from 1 June 2026, SOCSO protection is expanded beyond employment-related injuries and invalidity to include qualifying non-employment injuries. By understanding your contributions, the phased SKBBK rates, and the benefits available, you can ensure that you're adequately covered while effectively managing your finances.