What is SOCSO in Malaysia?
Malaysia’s Social Security Organization (SOCSO), also known as Pertubuhan Keselamatan Sosial (PERKESO), is a government agency that aims to provide social security and protections to employees in Malaysia as per the Employee’s Social Security Act 1969.
Roles and responsibilities of SOCSO
SOCSO duties include:
- Registering employees and their employers
- Collecting contributions from both employees and employers
- When required, paying benefits to workers and their dependents
- Providing vocational and physical rehabilitation benefits
- Promoting occupational health and safety awareness
SOCSO’s contributions
SOCSO covers two social security schemes:
- The Employment Injury Scheme: To provide protection for employees against occupational accidents and diseases that may occur during employment.
- The Invalidity Scheme: This provides protection against invalidity or death due to any cause
Who’s eligible for SOCSO’s benefits?
Contribution to SOCSO is compulsory for all Malaysian citizens and permanent residents who are under a contract or apprenticeship in the private sector, as well as contractual or temp staff in the public sector. The rate of contribution is capped at RM 4,000.
Non-Malaysian employees are only covered under the employment injury scheme as long as they contribute towards SOCSO.
Learn about other payroll terms in Malaysia:
- Benefits in Kind
- Employment Insurance System
- Monthly Tax Deduction
- Inland Revenue Board of Malaysia
- Employee Provident Fund
Are you an employer and need help with your employees’ SOCSO’s contributions?
We know that understanding SOCSO’s contributions are no easy task. That is why we are here to help.
Book a demo with us to learn more!
Disclaimer: The information in this article is current as at 11-Nov-2022, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related corporate bodies (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified, and no warranties are given that it is complete, accurate, up-to-date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.
