Every employer in Malaysia is responsible for contributing to EPF (KWSP), SOCSO (PERKESO), and EIS (SIP) as part of monthly payroll. These statutory contributions help provide retirement savings, social security protection, and financial support for eligible employees.
This guide explains the latest contribution rates, key updates, payment deadlines, and employer responsibilities for 2026.
What's New in 2026?
Here are some important updates employers should know:
- Eligible foreign workers are required to contribute to EPF at 2% (employee) and 2% (employer).
- The SOCSO and EIS wage ceiling remains RM6,000 per month.
- The standard EPF employee contribution rate remains 11% for eligible Malaysian employees.
EPF vs SOCSO vs EIS
Although all three are statutory contributions, each serves a different purpose.
Understanding these differences helps employers process payroll accurately and stay compliant with Malaysian regulations.
EPF (KWSP)
The Employees Provident Fund (EPF) is Malaysia's mandatory retirement savings scheme. Both employers and employees contribute every month based on the employee's wages and the applicable contribution table.
EPF Contribution Rates
Different contribution rates may apply to employees aged 60 and above, permanent residents, and foreign workers.
To estimate employee and employer contributions based on the latest rates, use our EPF Calculator Malaysia.
SOCSO (PERKESO)
SOCSO provides protection against workplace injuries, invalidity, and employment-related risks. Contribution amounts depend on the employee's salary category and the official PERKESO contribution table.
SOCSO Contribution Rates
SOCSO contributions are calculated using the official PERKESO contribution table with a wage ceiling of RM6,000.
For a quick estimate, use our SOCSO Calculator Malaysia to calculate employer and employee contributions.
EIS (Employment Insurance System)
The Employment Insurance System (EIS) provides temporary financial assistance and employment support to eligible employees who lose their jobs. EIS is administered by PERKESO and paid together with SOCSO contributions.
EIS Contribution Rate
Payment Deadline
EPF, SOCSO, and EIS contributions must be submitted by the 15th of the following month.
Submitting contributions on time helps employers avoid late payment charges and remain compliant with statutory requirements.
Which Calculator Should You Use?
If you need to calculate statutory contributions separately, these free tools can help.
Using the right calculator helps reduce manual errors and makes payroll processing more efficient.
FAQs
Are EPF, SOCSO, and EIS mandatory in Malaysia?
Yes. Employers are required to make statutory contributions for eligible employees in accordance with Malaysian employment laws.
Do foreign workers contribute to EPF?
Yes. Eligible foreign workers contribute 2%, while employers also contribute 2%, based on the current EPF requirements.
Are SOCSO and EIS calculated using the same salary?
Generally, yes. Both are calculated using the official PERKESO contribution table and are subject to the RM6,000 wage ceiling.
Can EPF, SOCSO, and EIS be calculated together?
Yes. Since all three statutory contributions are based on an employee's monthly salary, many employers use payroll software or online calculators to estimate EPF, SOCSO, and EIS before processing payroll.
When is the payment deadline for EPF, SOCSO, and EIS?
Employers must submit contributions by the 15th of the following month based on the previous month's wages.