Asked about Malaysia EPF (KWSP), SOCSO (PERKESO), or EIS contributions.
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General reference only
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Employee rate — Malaysian citizen/PR, under 60, salary ≤RM5,000
11%Employees Provident Fund Act 1991; KWSP Third Schedule
Employer rate — Malaysian citizen/PR, under 60, salary ≤RM5,000
13%Employees Provident Fund Act 1991; KWSP Third Schedule
Total rate — Malaysian citizen/PR, under 60, salary ≤RM5,000
24%Employees Provident Fund Act 1991; KWSP Third Schedule
Employee rate — Malaysian citizen/PR, under 60, salary >RM5,000
11%Employees Provident Fund Act 1991; KWSP Third Schedule
Employer rate — Malaysian citizen/PR, under 60, salary >RM5,000
12%Employees Provident Fund Act 1991; KWSP Third Schedule
Total rate — Malaysian citizen/PR, under 60, salary >RM5,000
23%Employees Provident Fund Act 1991; KWSP Third Schedule
Employee rate — Malaysian citizen/PR, age 60–75
5.5%Employees Provident Fund Act 1991; KWSP Third Schedule
Employer rate — Malaysian citizen/PR, age 60–75, salary ≤RM5,000
6.5%Employees Provident Fund Act 1991; KWSP Third Schedule
Employer rate — Malaysian citizen/PR, age 60–75, salary >RM5,000
6%Employees Provident Fund Act 1991; KWSP Third Schedule
Employee rate — Malaysian citizen/PR, age 75+
0%Employees Provident Fund Act 1991; KWSP Third Schedule
Employer rate — Malaysian citizen/PR, age 75+
0%Employees Provident Fund Act 1991; KWSP Third Schedule
Employee rate — non-Malaysian citizen, under 60 (from 1 October 2025)
2%Employees Provident Fund Act 1991
Employer rate — non-Malaysian citizen, under 60 (from 1 October 2025)
2%Employees Provident Fund Act 1991
Total rate — non-Malaysian citizen, under 60 (from 1 October 2025)
4%Employees Provident Fund Act 1991
Employee rate — non-Malaysian citizen, age 60+ (from 1 October 2025)
2%Employees Provident Fund Act 1991
Employer rate — non-Malaysian citizen, age 60+ (from 1 October 2025)
2%Employees Provident Fund Act 1991
Total rate — non-Malaysian citizen, age 60+ (from 1 October 2025)
4%Employees Provident Fund Act 1991
EPF remittance deadline
15th of the following monthEmployees Provident Fund Act 1991
Computation method
Per KWSP Third Schedule (rounded to nearest ringgit)Employees Provident Fund Act 1991; KWSP Third Schedule
Employee EPF contribution personal tax relief (combined with life insurance)
Max RM7,000Income Tax Act 1967
Maximum voluntary contribution per year (i-Saraan)
RM100,000/yearEmployees Provident Fund Act 1991
Government incentive match rate (i-Saraan)
20% of contributionEmployees Provident Fund Act 1991; annual Federal Budget
Maximum government incentive per year (i-Saraan)
RM350/yearEmployees Provident Fund Act 1991; annual Federal Budget
i-Saraan personal tax relief category
Life insurance + EPF combined (max RM7,000)Income Tax Act 1967
Employer rate — Employment Injury + Invalidity Scheme (from 1 October 2024)
1.75%Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Employee rate — Employment Injury + Invalidity Scheme (from 1 October 2024)
0.5%Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Total rate — Employment Injury + Invalidity Scheme (from 1 October 2024)
2.25%Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Employer rate — Employment Injury Scheme only (employees ≥60 or first-time contributors ≥55)
1.25%Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Employee rate — Employment Injury Scheme only (employees ≥60 or first-time contributors ≥55)
0%Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Total rate — Employment Injury Scheme only (employees ≥60 or first-time contributors ≥55)
1.25%Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
SOCSO wage ceiling (from 1 October 2024)
RM6,000/monthEmployees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
SOCSO wage ceiling (before October 2024)
RM5,000/monthEmployees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Maximum monthly employer contribution — full scheme (EIS + Invalidity)
RM105.00Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Maximum monthly employee contribution — full scheme (EIS + Invalidity)
RM30.00Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Maximum monthly total contribution — full scheme (EIS + Invalidity)
RM135.00Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Maximum monthly employer contribution — Employment Injury only (≥60)
RM75.00Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Maximum monthly employee contribution — Employment Injury only (≥60)
RM0Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Maximum monthly total contribution — Employment Injury only (≥60)
RM75.00Employees' Social Security Act 1969 (Act 4); PERKESO Third Schedule
Self-employed SOCSO contribution range
RM13.10 – RM49.40/monthSelf-Employment Social Security Act 2017 (Act 789)
Employee EIS rate
0.2%Employment Insurance System Act 2017 (Act 800)
Employer EIS rate
0.2%Employment Insurance System Act 2017 (Act 800)
EIS wage ceiling
RM6,000/monthEmployment Insurance System Act 2017 (Act 800)
Maximum EIS contribution per party (employee or employer)
RM12/monthEmployment Insurance System Act 2017 (Act 800)
Maximum total EIS contribution (employee + employer)
RM24/monthEmployment Insurance System Act 2017 (Act 800)
Job Search Allowance maximum duration
Up to 6 monthsEmployment Insurance System Act 2017 (Act 800)
EPF employer registration deadline after hiring first employee
Within 7 daysEmployees Provident Fund Act 1991
SOCSO employer registration deadline after hiring first employee
Within 30 daysEmployees' Social Security Act 1969 (Act 4)
SOCSO + EIS monthly submission deadline
15th of the following monthEmployees' Social Security Act 1969 (Act 4); Employment Insurance System Act 2017 (Act 800)
EPF late contribution charge
10% late payment charge (plus dividend loss)Employees Provident Fund Act 1991
SOCSO/EIS late contribution interest
6% per annumEmployees' Social Security Act 1969 (Act 4); Employment Insurance System Act 2017 (Act 800)
EPF failure to register — maximum fine
RM10,000Employees Provident Fund Act 1991
EPF failure to register — maximum imprisonment
≤3 yearsEmployees Provident Fund Act 1991
EPF failure to contribute — maximum fine
RM10,000 per offenceEmployees Provident Fund Act 1991
EPF failure to contribute — maximum imprisonment
≤3 years per offenceEmployees Provident Fund Act 1991
SOCSO/EIS failure to register — maximum fine
RM10,000Employees' Social Security Act 1969 (Act 4); Employment Insurance System Act 2017 (Act 800)
SOCSO/EIS failure to contribute — maximum fine
RM10,000Employees' Social Security Act 1969 (Act 4); Employment Insurance System Act 2017 (Act 800)
SOCSO/EIS failure to contribute — maximum imprisonment
≤2 yearsEmployees' Social Security Act 1969 (Act 4); Employment Insurance System Act 2017 (Act 800)
Employee SOCSO/EIS contribution personal tax relief cap
RM350Income Tax Act 1967
Quick Reference
| Field | Value |
|---|---|
| Country | Malaysia |
| Systems | EPF (KWSP), SOCSO (PERKESO), EIS (SIP) |
| Currency | MYR (Malaysian Ringgit / RM) |
| Contribution year | Calendar month |
| Primary legislation | EPF Act 1991; Employees' Social Security Act 1969 (Act 4); Employment Insurance System Act 2017 (Act 800) |
| Authorities | KWSP (EPF), PERKESO (SOCSO), PERKESO (EIS) |
| Validated by | Pending |
| Validation date | Pending |
| Skill version | 1.0 |
EPF Contribution Rates -- Malaysian Citizens and Permanent Residents
| Employee Category | Monthly Salary | Employee Rate | Employer Rate | Total |
|---|---|---|---|---|
| Under 60 years | ≤RM5,000 | 11% | 13% | 24% |
| Under 60 years | >RM5,000 | 11% | 12% | 23% |
| Age 60 -- 75 | Any | 5.5% | 6.5% (≤RM5,000) / 6% (>RM5,000) | ~12% |
| Age 75+ | Any | 0% | 0% | 0% |
EPF -- Foreign Employees (from 1 October 2025)
| Category | Employee Rate | Employer Rate | Total |
|---|---|---|---|
| Non-Malaysian citizen (under 60) | 2% | 2% | 4% |
| Non-Malaysian citizen (60+) | 2% | 2% | 4% |
| Permanent Residents | Same as Malaysian citizens | Same as Malaysian citizens | Same |
| Registered before 1 August 1998 | Same as Malaysian citizens | Same as Malaysian citizens | Same |
EPF Key Rules
| Item | Detail |
|---|---|
| Maximum contribution | No statutory cap on wages for EPF; contribution based on actual wages |
| Remittance deadline | 15th of the following month |
| Computation | Per KWSP Third Schedule (rounded to nearest ringgit) |
| Tax deduction | Employee EPF contribution deductible as personal relief (max RM7,000 combined with life insurance) |
| Employer deduction | Employer EPF contribution is a deductible business expense |
EPF for Self-Employed (i-Saraan)
| Item | Detail |
|---|---|
| Scheme | i-Saraan (voluntary) |
| Who | Self-employed, freelancers, gig workers, homemakers |
| Contribution | Any amount, up to RM100,000/year |
| Government incentive | Government matches 20% of contribution, up to RM350/year (subject to annual budget) |
| Tax relief | Contributions eligible for personal tax relief under life insurance + EPF (max RM7,000) |
| Registration | Via KWSP portal (kwsp.gov.my) or KWSP counters |
| No employer contribution | Self-employed pays full amount; no employer share |
SOCSO provides social security protection for employees covering employment injury and invalidity.
SOCSO Contribution Rates (from 1 October 2024)
| Scheme | Employer Rate | Employee Rate | Total |
|---|---|---|---|
| Employment Injury Scheme (EIS) + Invalidity Scheme | 1.75% | 0.5% | 2.25% |
| Employment Injury Scheme only (employees ≥60, first-time contributors ≥55) | 1.25% | 0% | 1.25% |
SOCSO Wage Ceiling
| Item | Amount |
|---|---|
| Wage ceiling (from 1 October 2024) | RM6,000/month |
| Previous ceiling (before October 2024) | RM5,000/month |
| Wages above ceiling | Only the ceiling amount applies for contribution calculation |
Maximum Monthly SOCSO Contribution
| Component | Employer | Employee | Total |
|---|---|---|---|
| Full scheme (EIS + Invalidity) | RM105.00 | RM30.00 | RM135.00 |
| Employment Injury only (≥60) | RM75.00 | RM0 | RM75.00 |
Note: Actual amounts are per the PERKESO Third Schedule contribution table (stepped amounts, not pure percentages).
SOCSO for Self-Employed
| Item | Detail |
|---|---|
| Scheme | Self-Employment Social Security Scheme (Act 789) |
| Coverage | Selected categories of self-employed (e.g., taxi drivers, fishermen, farmers, gig workers) |
| Registration | Via PERKESO portal |
| Contribution | Based on insured monthly earnings bracket (RM13.10 -- RM49.40/month) |
| Benefits | Employment injury benefits, invalidity pension, funeral benefit |
EIS provides temporary financial assistance to employees who lose their jobs, plus re-employment placement and training.
EIS Contribution Rates
| Party | Rate | Wage Ceiling |
|---|---|---|
| Employee | 0.2% | RM6,000/month |
| Employer | 0.2% | RM6,000/month |
| Maximum per party | RM12/month | |
| Total maximum | RM24/month |
EIS Eligibility
| Category | Covered |
|---|---|
| Malaysian citizens, under 60, private sector | Yes |
| Permanent residents, under 60, private sector | Yes |
| Foreign employees | Generally not covered |
| Government employees | Not covered |
| Domestic workers | Not covered |
| Self-employed | Not covered |
| Employees aged 60+ | Not required |
EIS Benefits
| Benefit | Detail |
|---|---|
| Job Search Allowance | Up to 6 months of payments |
| Early Re-employment Allowance | Lump sum for finding work before JSA expires |
| Training fees | For approved re-skilling programmes |
| Reduced Income Allowance | If new job pays significantly less |
Employee Earning RM4,000/month (Malaysian citizen, under 60)
| System | Employee | Employer | Total |
|---|---|---|---|
| EPF (11% / 13%) | RM440 | RM520 | RM960 |
| SOCSO (~per table) | ~RM20 | ~RM70 | ~RM90 |
| EIS (0.2% / 0.2%) | RM8 | RM8 | RM16 |
| Total | ~RM468 | ~RM598 | ~RM1,066 |
Employee Earning RM8,000/month (Malaysian citizen, under 60)
| System | Employee | Employer | Total |
|---|---|---|---|
| EPF (11% / 12%) | RM880 | RM960 | RM1,840 |
| SOCSO (capped at RM6,000) | ~RM30 | ~RM105 | ~RM135 |
| EIS (capped at RM6,000) | RM12 | RM12 | RM24 |
| Total | ~RM922 | ~RM1,077 | ~RM1,999 |
Employer Registration
| System | Registration | Deadline |
|---|---|---|
| EPF | Register within 7 days of hiring first employee | KWSP portal or counter |
| SOCSO | Register within 30 days of hiring first employee | PERKESO portal (assist.perkeso.gov.my) |
| EIS | Registered together with SOCSO | Same registration |
Monthly Submission Deadlines
| System | Deadline |
|---|---|
| EPF | 15th of following month |
| SOCSO + EIS | 15th of following month (combined submission) |
Penalties for Non-Compliance
| Offence | EPF Penalty | SOCSO/EIS Penalty |
|---|---|---|
| Late contribution | Dividend loss + 10% late payment charge | 6% per annum interest |
| Failure to register | Fine up to RM10,000 or imprisonment ≤3 years | Fine up to RM10,000 |
| Failure to contribute | Fine up to RM10,000 or imprisonment ≤3 years per offence | Fine up to RM10,000 or imprisonment ≤2 years |
Tax Treatment
| Contribution | Tax Treatment |
|---|---|
| Employee EPF contribution | Personal relief up to RM7,000 (combined with life insurance premiums) |
| Employer EPF contribution | Deductible business expense for employer |
| Employee SOCSO/EIS contribution | Personal relief up to RM350 |
| Employer SOCSO/EIS contribution | Deductible business expense for employer |
| Self-employed i-Saraan | Personal relief under EPF/life insurance category |
Key Portals
| System | URL |
|---|---|
| EPF (KWSP) | https://www.kwsp.gov.my |
| i-Saraan registration | https://www.kwsp.gov.my |
| SOCSO (PERKESO) | https://www.perkeso.gov.my |
| EIS | https://eis.perkeso.gov.my |
| Contribution tables | Available on respective portals |
Key Legislation
| System | Act |
|---|---|
| EPF | Employees Provident Fund Act 1991 |
| SOCSO | Employees' Social Security Act 1969 (Act 4) |
| Self-employed SOCSO | Self-Employment Social Security Act 2017 (Act 789) |
| EIS | Employment Insurance System Act 2017 (Act 800) |
This skill and its outputs are provided for informational and computational purposes only and do not constitute tax, legal, or financial advice. Open Accountants and its contributors accept no liability for any errors, omissions, or outcomes arising from the use of this skill. All outputs must be reviewed and signed off by a qualified professional (such as a CPA, EA, tax attorney, or equivalent licensed practitioner in your jurisdiction) before filing or acting upon.
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Other Malaysia computations in the OpenAccountants Tax Library.
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