{"id":1649,"date":"2025-09-12T11:52:33","date_gmt":"2025-09-12T11:52:33","guid":{"rendered":"https:\/\/www.info-tech.com.my\/blog\/?p=1649"},"modified":"2026-05-18T08:33:25","modified_gmt":"2026-05-18T08:33:25","slug":"socso-guide-for-malaysian-employers-employees","status":"publish","type":"post","link":"https:\/\/www.info-tech.com.my\/blog\/socso-guide-for-malaysian-employers-employees\/","title":{"rendered":"What Is SOCSO?"},"content":{"rendered":"It’s\u00a0often just a tiny line on your\u00a0paycheck\u00a0– a small amount taken out that many\u00a0employees\u00a0see and some\u00a0employers\u00a0treat as routine. But when something bad happens at work, someone gets hurt for a long time, or a family loses the person who brings in the money, that little line becomes the financial safety rope that decides if a household can get through the tough times. That safety net is SOCSO.<\/span>\u00a0<\/span>\r\n\r\nIn Malaysia,\u00a0<\/span>SOCSO (PERKESO)<\/span><\/b>\u00a0means more than just following the law.\u00a0It’s\u00a0a country-wide protection plan to make sure\u00a0employees\u00a0don’t\u00a0end up broke from injuries, sickness, or losing their income. For\u00a0employers, knowing about SOCSO\u00a0isn’t\u00a0just about following\u00a0rules –\u00a0it’s\u00a0about keeping their\u00a0employees\u00a0safe and building trust in the company.<\/span>\u00a0<\/span>\r\n

Why <\/strong>SOCSO <\/strong>Exists and Who It Protects?\u00a0<\/strong><\/h2>\r\nThe\u00a0<\/span>Employees’ Social Security Act 1969<\/span><\/b>\u00a0governs SOCSO, which started working on January 1, 1971. It has always aimed to provide social security protection to employees who face job-related injuries, disabilities, illnesses, or death.<\/span>\u00a0<\/span>\r\n\r\nSOCSO grew beyond factory floors as time passed. Now, it covers office employees, contract staff temporary workers, and even Malaysia’s fast-growing gig workforce through the <\/span>Self-Employment Social Security Scheme (SESSS)<\/span><\/b>. Foreign workers are covered under the Employment Injury Scheme, but not the Invalidity Scheme.This growth shows how Malaysia’s job scene has changed where old-school jobs exist alongside flexible gig roles.<\/span>\u00a0<\/span>\r\n\r\nSOCSO eases\u00a0employees\u2019\u00a0worries about income loss during\u00a0hard times. It boosts employee morale and helps businesses follow the law.<\/span>\u00a0<\/span>\r\n

What Are the SOCSO Schemes?<\/strong><\/h2>\r\nSOCSO offers two main plans. Each protects\u00a0employees\u00a0in different situations covering them both at work and outside.<\/span>\r\n

1. Employment Injury Scheme<\/span><\/span> <\/strong><\/h3>\r\nThis plan covers workplace injuries, travel accidents, and job-related illnesses. If\u00a0a\u00a0employee\u00a0has an accident on the way to work gets sick from workplace conditions, or suffers an injury during work hours, SOCSO pays for medical care short-term income support, disability benefits, and help for dependents.<\/span>\u00a0<\/span>\r\n

2. Invalidity Scheme<\/span><\/span><\/span><\/span><\/strong><\/h3>\r\nThis plan safeguards\u00a0employees\u00a0who get long-term sick become disabled\u00a0forever, or\u00a0die from any cause – not just job-related accidents. It covers serious health problems like strokes, heart issues, cancer, or any lasting inability to work. The plan includes disability pensions extra help for those needing constant care, money for funerals, and school support for dependents.<\/span>\u00a0<\/span>\r\n\r\nWhen combined, these plans offer full protection throughout a\u00a0employees\u2019\u00a0career.<\/span>\u00a0<\/span>\r\n

How Much Is SOCSO Contribution Rate?<\/strong><\/h2>\r\nSOCSO payments depend on monthly wages and change based on age and job type.<\/span>\u00a0<\/span>\r\n\r\nEmployees\u00a0under 60\u00a0pay\u00a0along with their employer.\u00a0Emploees\u00a060 and older pay differently because the Disability Plan no longer applies to them.<\/span>\u00a0<\/span>\r\n\r\nHere’s\u00a0the official breakdown for contributions:<\/span>\u00a0<\/span>\r\n

SOCSO Contribution Table (2026)\u00a0<\/strong><\/h3>\r\n\r\n\r\n\r\n\r\n\r\n\r\n\r\n
Category<\/th>\r\nContribution Type<\/th>\r\nDetails<\/th>\r\n<\/tr>\r\n<\/thead>\r\n
Below 60<\/td>\r\nEmployer + Employee<\/td>\r\nBased on SOCSO Contribution Table (capped at RM5,000 wages)<\/td>\r\n<\/tr>\r\n
60 & above<\/td>\r\nEmployer only<\/td>\r\nEmployment Injury Scheme only<\/td>\r\n<\/tr>\r\n
After 55 (first-time)<\/td>\r\nEmployer only<\/td>\r\nSame as above<\/td>\r\n<\/tr>\r\n<\/tbody>\r\n<\/table>\r\nExample: An employee who earns RM3,000 pays RM15.00, while their employer pays RM52.50 \u2014 adding up to RM67.50 for SOCSO’s fund.<\/span>\u00a0<\/span>\r\n\r\nThese payments go into a shared pool to protect all eligible employees across the country.<\/span>\u00a0<\/span>\r\n

What Employees Get Through SOCSO?\u00a0<\/strong><\/h2>\r\nSOCSO\u00a0perks\u00a0cover more than just doctor bills. They include:<\/span>\u00a0<\/span>\r\n