Take an employee under 60 earning RM4,000 a month, which is below the RM6,000 contribution ceiling, so the full wage counts. SOCSO is 0.5 percent from the employee, which is RM20, and 1.75 percent from the employer, which is RM70. EIS is 0.2 percent from each side, which is RM8 from the employee and RM8 from the employer. Adding the four lines gives a total contribution of RM106 a month, of which the employee pays RM28 and the employer pays RM78. If wages rose above RM6,000, the figures would stop increasing, because both schemes cap the contribution at the RM6,000 ceiling that took effect on 1 October 2024.
Line
Rate
Monthly (RM)
SOCSO employee
0.5%
20
SOCSO employer
1.75%
70
EIS employee
0.2%
8
EIS employer
0.2%
8
Total contribution
106
How it is calculated
SOCSO, run by PERKESO, provides social insurance against employment injury and invalidity, while EIS, the Employment Insurance System, supports workers who lose their jobs. For a Category 1 employee under 60, SOCSO is about 0.5 percent from the employee and 1.75 percent from the employer, and EIS is 0.2 percent from each side. All contributions are calculated on monthly wages up to a ceiling of RM6,000, raised from RM5,000 on 1 October 2024, so wages above that level do not raise the contribution. In practice PERKESO publishes a banded contribution table, and the exact ringgit figure for a given wage comes from the band it falls in rather than a precise percentage. The employee SOCSO and EIS paid also counts toward a small income-tax relief, capped at RM350 a year.
Frequently asked questions
How much are SOCSO and EIS contributions in Malaysia?
For an employee under 60, SOCSO is about 0.5 percent from the employee and 1.75 percent from the employer, while EIS is 0.2 percent from each side. All contributions are calculated on wages up to a ceiling of RM6,000 per month, so wages above that level do not increase the contribution.
What does SOCSO actually cover, and when does EIS pay out?
SOCSO, run by PERKESO, provides two categories of protection: Employment Injury Insurance covers work-related accidents and occupational diseases, while the Invalidity Scheme pays benefits if you become invalid or die regardless of cause. EIS, the Employment Insurance System, provides temporary financial assistance if you lose your job involuntarily, along with job-search support and retraining access. You must have contributed for at least 12 months within the previous 24 months to be eligible for EIS benefits.
Do employees over 60 still pay SOCSO and EIS contributions?
Employees aged 60 and above no longer contribute to the Invalidity Scheme under SOCSO, so only the Employment Injury Insurance rate applies for both employer and employee. EIS contributions generally stop once a worker turns 57. Rates for older employees differ from the standard Category 1 rates this calculator uses, so check the current PERKESO tables if the worker is near or past those age thresholds.
Are SOCSO and EIS contributions tax-deductible for the employee?
Yes. The employee portions of both SOCSO and EIS can be claimed as part of the personal income-tax relief for lifestyle and statutory contributions, subject to an annual cap. As the rules currently stand, employee SOCSO and EIS together contribute to a relief of up to RM350 per year. This is a modest benefit rather than a major tax lever, but it is automatic if you file your return accurately.