EPF & SOCSO

Every company is required to contribute EPF & SOCSO for its staff/workers. A company should remit the contribution sum to KWSP & Perkeso within the stipulated time period.

Failing to submit the forms & remit the payment within the time frame will result in late interest (penalty) charged by KWSP & Perkeso.

(Download all relevant forms at below)

EPF

EPF stands for Employees Provident Fund and also common known as KWSP or Kumpulan Wang Simpanan Pekerja in Malaysia.

The mandatory contributions based on the employee's pay are as follows:

Employer (company) - 13% for any wages less than RM5,000 & 12% for more than RM5,000
Employee (staff / workers) - 11%

The employers' contributions are tax deductible up to 19% of the employee's pay. As such, the company is encouraged to contribute more than the statutory rate of 12% to enjoy greater tax benefits.

The company must remit the payment to KWSP within the 15th day of the following month.

Visit our blog for more details or download Forms here:

SOCSO

The principal employer must pay monthly contribution for each eligible employee according to the rates specified under the Act.

All employees under a contract of service or employment and earning less than RM3,000 per month must compulsorily register and contribute to SOCSO regardless of the employment status whether it is permanent, temporary or casual in nature.

The amount of contribution to be paid is based on the SOCSO Contribution Table (Jadual Caruman SOCSO).

Every employer must within 30 days from the date of employing their staff/workers to visit Perkeso offices for registration.

Those who are not eligible for SOCSO protections are stated below: