SOCSO + EIS Calculator Malaysia

What Are SOCSO and EIS?

SOCSO (Social Security Organisation, called PERKESO in Malay) and EIS (Employment Insurance System) are two mandatory social-insurance schemes managed by Pertubuhan Keselamatan Sosial. Together with EPF and PCB tax, they're deducted automatically from Malaysian payroll each month. SOCSO covers two protections: Employment Injury Scheme (EIS-1) for workplace accidents and occupational diseases, and Invalidity Scheme for total/permanent disability and death not connected to work. EIS (the Employment Insurance System, separate from SOCSO's Employment Injury Scheme despite the similar name) provides up to 6 months of unemployment benefit when a worker is involuntarily separated from employment.

Per perkeso.gov.my, all employees earning RM 6,000 or less per month must be registered. The wage ceiling for contribution calculation is RM 6,000 — for salaries above this, contributions are calculated on RM 6,000 only. Both employer and employee contribute, with the employer share substantially larger.

SOCSO Categories — Who Pays What

Category I (Employment Injury + Invalidity): Malaysian citizens and permanent residents under age 60. Employer pays 1.75% of monthly wages; employee pays 0.5%. Combined rate is 2.25%, with a maximum monthly contribution of RM 49.40 employer + RM 14.10 employee at the wage ceiling. Category II (Employment Injury only): Malaysians 60+ and foreign workers. Employer pays 1.25%; employee pays 0%. The maximum employer contribution is RM 28.80/month at the wage ceiling. Foreign workers were brought into Category II in January 2019 as part of expanded mandatory coverage.

For full Malaysian payroll deductions, combine SOCSO/EIS with EPF (see EPF calculator) and PCB tax (see PCB calculator). For total annual income tax, see Malaysia income tax calculator.

EIS — The Unemployment Insurance Scheme

EIS provides unemployment benefits to Malaysians and PRs aged 18-59 in covered employment. Both employer and employee contribute 0.2% of monthly wages each (combined 0.4%), capped at the RM 6,000 wage ceiling — so maximum contribution is RM 11.90 each side. EIS benefits include: Job Search Allowance (50-80% of salary for up to 6 months), Reduced Income Allowance, Training Fee, and Career Counselling. Workers must have contributed for at least 12 months in the qualifying period to claim. Workers terminated for misconduct or who voluntarily resign are NOT eligible.

EIS was launched in January 2018 to replace ad-hoc retrenchment benefits with a structured insurance system. Coverage was expanded in 2019 to include workers in industries previously outside SOCSO's scope. Self-employed individuals and gig workers can voluntarily register for SOCSO under the SKSPS scheme but EIS is currently restricted to employees only.

Reporting and Payment Deadlines

Employers must register new employees with PERKESO within 30 days of their start date and remit contributions by the 15th of the following month via the ASSIST portal. Late payment incurs interest of 6% annually plus a 1.25% per month penalty. Common compliance issues: failing to register foreign workers (Category II), forgetting to upgrade from Category II to Category I when a foreign worker becomes a PR, and not reducing contributions when an employee turns 60 (which moves them to Category II).

Last updated May 2026. Sources: perkeso.gov.my, assist.perkeso.gov.my.