SOCSO Contribution Table Malaysia 2026: Complete Guide for Employers & Employee
If you handle payroll in Malaysia. Or just want to understand the numbers on your payslip. The SOCSO (PERKESO) contribution table is one of the important tools you will use all year. For 2026 the basic rates have not changed much.. There is a major update every employer and employee should know about: the new Lindung 24 Jam (SKBBK) scheme, which starts in June 2026.
This guide explains the 2026 SOCSO contribution system. Including First Category, Second Category, EIS and the new non-employment injury plan. In simple words. It also includes examples so you can calculate contributions correctly.
What Is SOCSO (PERKESO)?
SOCSO stands for the Social Security Organisation. In Malay it is called PERKESO (Pertubuhan Keselamatan Sosial). It was set up under the Employees Social Security Act 1969 (Act 4). This is Malaysia’s social security system. It helps protect employees and their families from losing income due to workplace injuries, occupational diseases, disability and. Starting in 2026. Some accidents that happen outside work.
You can find details about PERKESO’s schemes and services on the PERKESO website. Every private-sector employer in Malaysia must register employees and make SOCSO contributions on their behalf. Contributions are shared between the employer and the employee. They are based on a wage-banded table, not a percentage.. They are still calculated using percentages behind the scenes.
Key SOCSO Numbers to Know for 2026
| Item | 2026 Figure |
|---|---|
| Monthly wage ceiling | RM6,000 |
| Category 1 (under 60) — Employer | 1.75% |
| Category 1 (under 60) — Employee | 0.5% |
| Category 1 maximum monthly contribution | RM134.55 (Employer RM104.65 + Employee RM29.90) |
| Category 2 (60 and above) — Employer only | ~1.25% |
| Category 2 maximum monthly contribution | RM74.40 (employer-paid) |
| EIS — Employer | 0.2% |
| EIS — Employee | 0.2% |
| EIS maximum monthly contribution | RM23.80 (RM11.90 + RM11.90) |
| Lindung 24 Jam (SKBBK) — Employee only | 0.75% |
| Lindung 24 Jam maximum monthly contribution | RM45 |
The RM6,000 wage ceiling has been in effect since October 2024. It continues through 2026. There is no change to the ceiling this year.
Category 1: Employment Injury Scheme + Invalidity Pension Scheme
Category 1 applies to all employees under 60 years old regardless of citizenship. Malaysian Permanent Resident or foreign worker. Both employer and employee pay. There are two parts:
- Employment Injury Scheme: covers accidents at work commuting accidents and illnesses caused by work
- Invalidity Pension Scheme: gives income support if someone becomes permanently disabled
The rate is 1.75% paid by the employer and 0.5% by the employee. That adds up to 2.25%. Once wages go over RM6,000 the contributions stop increasing. So someone earning RM6,500 and someone earning RM15,000 both pay the amount.
Sample Category 1 Contributions (illustrative)
| Monthly Wage (RM) | Employer Share (RM) | Employee Share (RM) | Total (RM) |
|---|---|---|---|
| 1,500 | ~26.25 | ~7.50 | ~33.75 |
| 3,000 | ~52.50 | ~15.00 | ~67.50 |
| 4,500 | ~78.75 | ~22.50 | ~101.25 |
| 6,000 and above | 104.65 | 29.90 | 134.55 |
These numbers come from PERKESO’s official banded schedule. The schedule uses fixed amounts for each RM100 wage bracket, not a percentage calculation. That means actual figures may be slightly different from what you get with math. Always check the PERKESO table for exact values.
Category 2: Employees Aged 60 and Above
When an employee turns 60 their SOCSO benefits change:
- Only the Employment Injury Scheme applies
- The Invalidity Pension Scheme does not apply anymore
- The employer pays the full contribution. Around 1.25% of wages
- No deduction is taken from the employee’s salary
- EIS does not apply to anyone aged 60 and above no matter their nationality
- Maximum monthly contribution: RM74.40, paid entirely by the employer when wages reach RM6,000
This rule applies to Malaysians, Permanent Residents and foreign workers who are 60 or older.
EIS (Employment Insurance System) Contribution Table 2026
The Employment Insurance System (Act 800) is separate from SOCSO.. It is collected together. It offers help and job placement support when people lose their jobs.
- Rate: 0.2% employer + 0.2% employee = 0.4% total
- Wage ceiling: RM6,000 (same as SOCSO)
- Maximum monthly contribution: RM23.80 total (RM11.90 employer + RM11.90 employee)
Who does not contribute to EIS?
- workers of any pass type
- Employees aged 60 and above
- Domestic helpers or maids no matter their nationality
Only Malaysian citizens and Permanent Residents under 60 pay into EIS.
New for 2026: Lindung 24 Jam (SKBBK) — Non-Employment Injury Scheme
This is the news for 2026. Starting June 1 2026 PERKESO launched a plan called the Non-Employment Injury Scheme, known as Skim Keselamatan Bencana Bukan Kerja – SKBBK. To the public it is called Lindung 24 Jam meaning “Protected 24 Hours.” Unlike plans this one covers accidents and injuries that happen outside of work hours and outside the job itself. It gives protection all day every day.
Key points:
- Rate: 0.75% of wages paid only by the employee
- Wage ceiling: RM6,000 → max contribution is RM45 per month
- Rate lock: This Phase 1 rate is confirmed until May 31 2028
- Foreign workers: Must join. Participation is mandatory
- Malaysian employees: Can choose to opt out starting July 8 2026
- To opt out Malaysian employees must submit a release-of-liability notice online via the PERKESO LINDUNG Faedah portal or in person at a PERKESO office
- The opt-out deadline is August 31 2026
- Anyone who does nothing stays enrolled and keeps paying
What this means for payroll: Starting with the June 2026 payroll cycle employers must include the extra 0.75% employee-only deduction for those who have not opted out. All foreign workers must be included. They cannot opt out.
How SOCSO Contributions Are Calculated
SOCSO does not just multiply salary by a percentage. Move on. It uses a wage-band system. Your monthly salary falls into a RM100 bracket. Each bracket has a fixed contribution amount listed in PERKESO’s schedule under the Third Schedule of Act 4. That’s why real payroll numbers might differ slightly from a percentage calculation. Always check the PERKESO table instead of guessing.
General logic:
- Find the employees category: Category 1 if under 60; Category 2 if 60+
- if monthly wages are at or below RM6,000 or above. Use RM6,000 for anything higher
- Apply the correct employer and employee percentages or use the exact bracket amount from the official table
- Add EIS separately (if applicable)
- From June 2026 add the Lindung 24 Jam employee contribution unless the employee has officially opted out (Malaysians only. Foreign workers always pay)
PERKESO has its own official calculator for Act 4 and Act 800. It’s worth saving. If you want to see SOCSO, EPF and PCB deductions against your take-home pay a payroll calculator can help bring everything into one view.
Employer Obligations and Compliance
Employers in Malaysia must:
- Register all employees with PERKESO on their first day of employment
- Deduct and send the correct SOCSO, EIS and (where relevant) SKBBK contributions every month
- Update payroll systems whenever PERKESO changes brackets, ceilings or rules
- Process opt-out requests properly and on time for Malaysian staff who don’t want to join Lindung 24 Jam
- Pay contributions by the 15th of the following month. Late payments lead to penalties
- Use PERKESO’s ASSIST Portal to make payments
Getting this wrong is more than a legal risk. Wrong contributions can affect whether someone qualifies for benefits if they later need to file a claim.
Frequently Asked Questions
Is the wage ceiling changing in 2026?
No. The ceiling has stayed at RM6,000 since it was updated in October 2024. No further change has been announced for 2026.
Do foreign workers pay SOCSO in Malaysia?
Yes. Foreign workers are covered under Category 1 (Employment Injury and Invalidity Pension Schemes) like Malaysian employees. Participation in Lindung 24 Jam is required.. Foreign workers do not pay into EIS.
Can I opt out of Lindung 24 Jam?
Malaysian employees can opt out by submitting a release-of-liability notice through the PERKESO LINDUNG Faedah portal or at a PERKESO counter. The deadline is August 31 2026. Foreign workers cannot opt out.
What’s the maximum someone could pay across all schemes in 2026?
For an employee under 60 earning RM6,000 or more who stays in Lindung 24 Jam:
- SOCSO (RM29.90) + EIS (RM11.90) + SKBBK (RM45) = RM86.80 in employee deductions
- Employer contributions: SOCSO (RM104.65). Eis (RM11.90) = RM116.55
Final Thoughts
The 2026 SOCSO setup is mostly similar, to years. The wage ceiling and core rates are unchanged.. The launch of Lindung 24 Jam (SKBBK) makes a big difference. Especially for HR teams managing payroll updates, tracking opt-outs and communicating clearly to employees.
Whether you are an employer setting up payroll or an employee trying to understand your payslip keeping the version of the PERKESO contribution schedule is the best way to stay accurate and compliant.
This article gives information only. For breakdowns and the latest official details always refer to the official PERKESO contribution schedule.