The principal employer must pay monthly contribution for each eligible employee according to the rates specified under the Act.The amount of contribution to be paid is based on the SOCSO Contribution Schedule. Please refer Attachment
Both the rates of contribution are based on the total monthly wage paid to the employee. Contributions should be made from the first month the employee is employed.
Types and Categories of Contributions
i- First Category (Employment Injury Scheme And Invalidity Pension Scheme)
Both the rates of contribution are based on the total monthly wage paid to the employee. Contributions should be made from the first month the employee is employed.
Types and Categories of Contributions
i- First Category (Employment Injury Scheme And Invalidity Pension Scheme)
• For employees below 60 years of age. The contribution is paid by both the employer and employee for Employment Injury Scheme and Invalidity Pension Scheme.
ii- Second Category (Employment Injury Scheme Only)
• For employees above 60 years of age and still working.
• For employees above 55 years of age when first registered and contributed to SOCSO;
• For an Insured Person receiving Invalidity Pension who is still working and receiving wages which is less than1/3 of the average monthly wage before invalidity.Under this category contributions are only paid by the employer for protection under the Employment Injury Scheme.
• For employees above 55 years of age when first registered and contributed to SOCSO;
• For an Insured Person receiving Invalidity Pension who is still working and receiving wages which is less than1/3 of the average monthly wage before invalidity.Under this category contributions are only paid by the employer for protection under the Employment Injury Scheme.
Definition Of Wages
All renumeration payable in money to an employee is taken into account as wages for the purposes of SOCSO contributions. These include the following payments:
• Salary
• Overtime payments
• Commission
• Payments for leave such as annual, sick and maternity leave, rest day, public holidays
• Allowances such as incentive, good behavior, cost of living (COLA)
• Service Charge
• Overtime payments
• Commission
• Payments for leave such as annual, sick and maternity leave, rest day, public holidays
• Allowances such as incentive, good behavior, cost of living (COLA)
• Service Charge
Example:
Salary = RM1000.00
Overtime Payments = RM 250.00
COLA = RM 100.00
Total Salary = RM1350.00
Contribution to be paid to SOCSO is RM30.40 (Refer the Attachment A-Contribution Table) However, the following payments are not considered as wages:
• Payments by employer to any pension or provident fund for employees
• Mileage claims
• Gratuity payment(s) for dismissal or retrenchments
• Annual bonus
• Mileage claims
• Gratuity payment(s) for dismissal or retrenchments
• Annual bonus
Note - (The payments listed above are a few examples and are not comprehensive.If an employer needs further clarification pertaining to the definition of 'wages', please contact the nearest SOCSO office).
