Wages or Salary Payment Subject to SOCSO Contribution

Wages subject to SOCSO contribution:

Any remuneration payable in money to an employee is taken as wages for purposes of SOCSO contributions. This includes the following payments:

  1. Salary
  2. Overtime payments
  3. Commission and service charge
  4. Payments for leave; such as annual, sick, maternity, rest day, public holidays and etc
  5. Allowances such as incentives, shift, food / meal, cost of living, housing and etc
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Wages NOT subject to SOCSO contribution:

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:

  1. Payments by an employer to any statutory fund for employees
  2. Mileage claims
  3. Gratuity payments or payments for dismissal or retrenchments
  4. Annual bonus

For further clarification on definition of wages, kindly contact SOCSO offices or Customer Service Careline at 1 300 22 8000.