Employed Workers

Schemes and Protection for Employers (LINDUNG PEKERJA)

It is compulsory for all eligible employees who are Malaysian citizens and permanent residents to register. All employees who are employed under a contract of service or apprenticeship in the private sector and contractual / temporary staff of Federal / State Government as well as Federal / State Statutory Bodies need to be registered and covered by PERKESO. The rate of contribution is capped at monthly wage ceiling of RM6,000.00 effective on 1 October 2024.

However, for husband or wife who acts as the main employer, amendment was made to not exclude the spouse from this coverage of ESSA 1969 starting 1st July 2018, based on Employees' Social Security Order (First Schedule Amendment) 2018 in Federal Governement Gazette (P.U.(A) 144/2018). This means that the spouse to an enterprise owner can be registered as an employee.

Employees exempted from the coverage of the Employees’ Social Security Act 1969

Federal and State Government permanent employees
Self-employed (except for self-employed taxi drivers, individuals who run similar services including e-hailing such as Grab and self-employed bus drivers)
Sole proprietorship or partner in a partnership

Employment Insurance (LINDUNG PEKERJA)

The Employment Insurance System Act 2017 was introduced and came into force on 1 January 2018. All employers in the private sector are required to pay monthly contributions on behalf of each employee. (Government employees and the self-employed are exempt). An employee is defined as a person who is employed for wages under a contract of service or apprenticeship with an employer. The contract of service or apprenticeship may be expressed or implied and may be oral or in writing.

All employees aged 18 to 60 are required to contribute. However, employees aged 57 and above who have no prior contributions before the age of 57 are exempt.
Contribution rates are capped at an assumed monthly salary of RM6,000.00.

Contribution

Generally, employees only contribute 0.5% of their salary for Employment Injury Scheme and Invalidity Scheme, and 0.2% for Employment Insurance depending on their eligibility.

Kindly visit the contribution page for more info.

Contribution Page

Registration

Registration of employees must be made by the employers and it is the employees responsibility to ensure that you are registered and your contributions are paid fully by both parties. You may find the registration process in the link below.

Registration Page

Protection Scheme

Formal employees are protected under Employment Injury Scheme (LINDUNG PEKERJA), Invalidity Scheme (LINDUNG PEKERJA and Employment Insurance (LINDUNG KERJAYA). Visit the respective pages to know more about the schemes:

Employment Injury Scheme

Invalidity Scheme

Employment Insurance