EIS Contribution Rate in Malaysia

Payroll
EIS Contribution Rate in Malaysia

In this article

If you’re working in Malaysia, chances are you’ve seen “EIS” on your payslip and didn’t think much about it. It’s one of those deductions people tend to ignore until suddenly, it matters. The truth is, EIS isn’t just another statutory requirement. It’s there for a very specific reason: to help when things don’t go as planned, like losing a job unexpectedly. Let’s walk through it properly and know how it actually works in real life.

What is EIS And Why It Matters?

EIS stands for Employment Insurance System. It came into effect in 2018 under the EIS Act 2017, and it’s managed by SOCSO (PERKESO). At its core, it’s pretty simple. It’s meant to support people who lose their jobs involuntarily due to things like retrenchment, company shutdowns, or restructuring. Instead of being left with zero income overnight, EIS gives temporary financial support while you look for something new. But what makes it different is that it doesn’t stop at just money. It also helps people get back into work through job matching, training, and career support.

Who Needs To Contribute To EIS?

If you’re a Malaysian citizen or a permanent resident working in the private sector, you’re covered. It doesn’t matter if you’re full-time or on a contract. As long as you’re under a contract of service, EIS applies. Employers also have to contribute. It’s not optional for either side. But there are exceptions:
  • Government employees aren’t included
  • Foreign workers are excluded
  • Domestic workers usually don’t fall under EIS
  • People above 60 (compulsory retirement age)
  • Employees aged 57 and above who have no prior contributions
So if you’re in a typical private sector job, you’re already contributing, whether you noticed or not.

How Much Do You Pay For EIS Every Month?

The contribution rate is fixed:
  • 0.2% from the employer
  • 0.2% from the employee
So altogether, it’s 0.4% of your monthly salary. It’s a small amount, which is why many people barely notice it. For example, if someone earns RM3,000 a month, both the employer and employee contribute RM6 each. That makes RM12 in total going into the EIS fund. There’s also a cap, so once your salary crosses a certain limit, the contribution doesn’t keep increasing endlessly.

What Changed With The New Wage Ceiling In 2024?

Starting 1 October 2024, PERKESO increased the wage ceiling from RM5,000 to RM6,000. What does that mean in plain terms? Before this, once your salary crossed RM5,000, your EIS contribution wouldn’t increase further. Now, that cap has been pushed up to RM6,000. So, if you earn above RM5,000, your contribution might be slightly higher than before, but only up to the new ceiling. Anything above RM6,000 is still capped. Employers also have to make sure contributions from October 2024 onwards follow this updated limit. Missing that can lead to compliance issues.
How EIS Contribution Works
Working of EIS Contribution

What Does EIS Contribution Table Look Like?

The official table is long, but the idea behind it is straightforward. As your salary increases, your contribution increases slightly, but only up to the wage ceiling.

EIS Table 2026

Monthly Wages Employer Contribution Employee Contribution Total Contribution
Wages up to RM30 5 sen 5 sen 10 sen
Exceed RM30 but not exceed RM50 10 sen 10 sen 20 sen
Exceed RM50 but not exceed RM70 15 sen 15 sen 30 sen
Exceed RM70 but not exceed RM100 20 sen 20 sen 40 sen
Exceed RM100 but not exceed RM140 25 sen 25 sen 50 sen
Exceed RM140 but not exceed RM200 35 sen 35 sen 70 sen
Exceed RM200 but not exceed RM300 50 sen 50 sen RM1.00
Exceed RM300 but not exceed RM400 70 sen 70 sen RM1.40
Exceed RM400 but not exceed RM500 90 sen 90 sen RM1.80
Exceed RM500 but not exceed RM600 RM1.10 RM1.10 RM2.20
Exceed RM600 but not exceed RM700 RM1.30 RM1.30 RM2.60
Exceed RM700 but not exceed RM800 RM1.50 RM1.50 RM3.00
Exceed RM800 but not exceed RM900 RM1.70 RM1.70 RM3.40
Exceed RM900 but not exceed RM1,000 RM1.90 RM1.90 RM3.80
Exceed RM1,000 but not exceed RM1,100 RM2.10 RM2.10 RM4.20
Exceed RM1,100 but not exceed RM1,200 RM2.30 RM2.30 RM4.60
Exceed RM1,200 but not exceed RM1,300 RM2.50 RM2.50 RM5.00
Exceed RM1,300 but not exceed RM1,400 RM2.70 RM2.70 RM5.40
Exceed RM1,400 but not exceed RM1,500 RM2.90 RM2.90 RM5.80
Exceed RM1,500 but not exceed RM1,600 RM3.10 RM3.10 RM6.20
Exceed RM1,600 but not exceed RM1,700 RM3.30 RM3.30 RM6.60
Exceed RM1,700 but not exceed RM1,800 RM3.50 RM3.50 RM7.00
Exceed RM1,800 but not exceed RM1,900 RM3.70 RM3.70 RM7.40
Exceed RM1,900 but not exceed RM2,000 RM3.90 RM3.90 RM7.80
Exceed RM2,000 but not exceed RM2,100 RM4.10 RM4.10 RM8.20
Exceed RM2,100 but not exceed RM2,200 RM4.30 RM4.30 RM8.60
Exceed RM2,200 but not exceed RM2,300 RM4.50 RM4.50 RM9.00
Exceed RM2,300 but not exceed RM2,400 RM4.70 RM4.70 RM9.40
Exceed RM2,400 but not exceed RM2,500 RM4.90 RM4.90 RM9.80
Exceed RM2,500 but not exceed RM2,600 RM5.10 RM5.10 RM10.20
Exceed RM2,600 but not exceed RM2,700 RM5.30 RM5.30 RM10.60
Exceed RM2,700 but not exceed RM2,800 RM5.50 RM5.50 RM11.00
Exceed RM2,800 but not exceed RM2,900 RM5.70 RM5.70 RM11.40
Exceed RM2,900 but not exceed RM3,000 RM5.90 RM5.90 RM11.80
Exceed RM3,000 but not exceed RM3,100 RM6.10 RM6.10 RM12.20
Exceed RM3,100 but not exceed RM3,200 RM6.30 RM6.30 RM12.60
Exceed RM3,200 but not exceed RM3,300 RM6.50 RM6.50 RM13.00
Exceed RM3,300 but not exceed RM3,400 RM6.70 RM6.70 RM13.40
Exceed RM3,400 but not exceed RM3,500 RM6.90 RM6.90 RM13.80
Exceed RM3,500 but not exceed RM3,600 RM7.10 RM7.10 RM14.20
Exceed RM3,600 but not exceed RM3,700 RM7.30 RM7.30 RM14.60
Exceed RM3,700 but not exceed RM3,800 RM7.50 RM7.50 RM15.00
Exceed RM3,800 but not exceed RM3,900 RM7.70 RM7.70 RM15.40
Exceed RM3,900 but not exceed RM4,000 RM7.90 RM7.90 RM15.80
Exceed RM4,000 but not exceed RM4,100 RM8.10 RM8.10 RM16.20
Exceed RM4,100 but not exceed RM4,200 RM8.30 RM8.30 RM16.60
Exceed RM4,200 but not exceed RM4,300 RM8.50 RM8.50 RM17.00
Exceed RM4,300 but not exceed RM4,400 RM8.70 RM8.70 RM17.40
Exceed RM4,400 but not exceed RM4,500 RM8.90 RM8.90 RM17.80
Exceed RM4,500 but not exceed RM4,600 RM9.10 RM9.10 RM18.20
Exceed RM4,600 but not exceed RM4,700 RM9.30 RM9.30 RM18.60
Exceed RM4,700 but not exceed RM4,800 RM9.50 RM9.50 RM19.00
Exceed RM4,800 but not exceed RM4,900 RM9.70 RM9.70 RM19.40
Exceed RM4,900 but not exceed RM5,000 RM9.90 RM9.90 RM19.80
Exceed RM5,000 but not exceed RM5,100 RM10.10 RM10.10 RM20.20
Exceed RM5,100 but not exceed RM5,200 RM10.30 RM10.30 RM20.60
Exceed RM5,200 but not exceed RM5,300 RM10.50 RM10.50 RM21.00
Exceed RM5,300 but not exceed RM5,400 RM10.70 RM10.70 RM21.40
Exceed RM5,400 but not exceed RM5,500 RM10.90 RM10.90 RM21.80
Exceed RM5,500 but not exceed RM5,600 RM11.10 RM11.10 RM22.20
Exceed RM5,600 but not exceed RM5,700 RM11.30 RM11.30 RM22.60
Exceed RM5,700 but not exceed RM5,800 RM11.50 RM11.50 RM23.00
Exceed RM5,800 but not exceed RM5,900 RM11.70 RM11.70 RM23.40
Exceed RM5,900 but not exceed RM6,000 RM11.90 RM11.90 RM23.80
Exceed RM6,000 RM11.90 RM11.90 RM23.80
Source: PERKESO Act 800 Contribution Table

Are There Different Contribution Rules For Other Schemes?

Yes, and this is where people sometimes mix things up. EIS falls under Act 800, but there are other SOCSO-related schemes too:
  • Act 4 (SOCSO contributions)
  • Self-Employment Social Security Scheme (Act 789)
  • Housewives’ Social Security Scheme (Act 838)
For example, under the Housewives’ scheme, there’s a fixed contribution of RM120 per year, paid upfront for 12 months. Self-employed contributions, on the other hand, vary depending on income levels. So while EIS is straightforward percentage-based, not all schemes work the same way.

What Are the Benefits of EIS?

If someone loses their job, EIS offers:
  • Monthly income support (Job Search Allowance)
  • Incentives for finding a job early
  • Extra help if the new job pays less
  • Training programmes with allowance
  • Career counselling and job placement support
It’s not just about surviving unemployment; it’s about getting back on your feet faster.

When Do Employers Need To Pay EIS Contributions?

There’s a fixed deadline: the 15th of the following month. So if you’re paying for March, it needs to be submitted by April 15. Late payments aren’t taken lightly. Employers can face:
  • Penalties
  • Interest charges
  • Possible enforcement action
But beyond penalties, the bigger issue is that delayed contributions can affect employees’ eligibility when they need to claim.

Why is EIS Important?

Honestly, most people don’t think about EIS until something goes wrong. But that’s exactly the point of it. It’s there before you need it. For employees, it’s a backup plan. Not a huge one, but enough to buy time and reduce panic during job loss. For employers, it’s part of doing things properly. Staying compliant, avoiding fines, and making sure employees are covered. And at a bigger level, it helps keep the workforce stable. People who get support are more likely to recover and return to work sooner.

Conclusion

EIS isn’t flashy. It’s not something people talk about much. But it quietly does its job in the background. A small percentage every month might not feel like much, but when things go sideways, it can make a real difference. That’s really what it’s there for.
At the end of the day, EIS is one of those things that quietly runs in the background and is important, but easy to overlook until something goes wrong. For employers, though, getting it right every month isn’t optional. Between EIS, EPF, SOCSO, and tax deductions, payroll can get messy pretty quickly if you’re handling it manually. That’s where a good payroll software really makes a difference. It takes care of calculations, applies the latest contribution rates (including changes like the new wage ceiling), and ensures everything is submitted on time without the usual back-and-forth. Instead of worrying about compliance errors or missed deadlines, you can focus on running your business, knowing the numbers are handled properly behind the scenes.

EIS Contribution FAQs

How much can I claim from EIS?

The Job Search Allowance provided by SOCSO is paid based on the assumed monthly wage: 80% for the first month, 50% for the second month, 40% for the third and fourth month, and 30% for the fifth and sixth months.
EIS and SOCSO are both managed by PERKESO, but they serve different purposes. SOCSO (Social Security) provides protection for work-related injuries, disabilities, or death, while EIS (Employment Insurance System) supports employees who lose their jobs involuntarily by offering temporary income and job search assistance.
No, you generally cannot claim EIS if you resign voluntarily. EIS is meant for employees who lose their jobs involuntarily, such as retrenchment, company closure, or redundancy. So resignations, misconduct dismissals, or mutual separations usually don’t qualify.

No, you can’t claim EIS relief over 2 years continuously. EIS benefits (like the Job Search Allowance) are typically paid for a maximum of 6 months per claim, but you may qualify for a new claim in the future if you meet the contribution and eligibility conditions again after returning to work.