NEW SOCSO & EIS UPDATE
Hello, did you know? 🤔
Effective October 1, 2024, the wage limit for SOCSO and EIS contributions has been increased from RM5,000 to RM6,000 under the Employees’ Social Security Act 1969 and the Employment Insurance System Act 2017.
What Has Changed?
This means employees earning above RM5,000 will see adjustments in their contributions, as outlined in the Third Schedule of Act 4 and the Second Schedule of Act 800. For those earning more than RM6,000, contributions will now be capped at the new salary ceiling of RM6,000. These changes will be reflected in the October 2024 payroll.
New SOCSO Contribution Table:
| Wages (RM) | Employee Contribution (RM) | Employer Contribution (RM) | Total Contribution (RM) |
| 5,100 | 25.25 | 88.35 | 113.60 |
| 5,200 | 25.75 | 90.15 | 115.90 |
| 5,300 | 26.25 | 91.85 | 118.10 |
| 5,400 | 26.75 | 93.65 | 120.40 |
| 5,500 | 27.25 | 95.35 | 122.60 |
| 5,600 | 27.75 | 97.15 | 124.90 |
| 5,700 | 28.25 | 98.85 | 127.10 |
| 5,800 | 28.75 | 100.65 | 129.40 |
| 5,900 | 29.25 | 102.35 | 131.60 |
| 6,000 | 29.75 | 104.15 | 133.90 |
| Exceeds 6,000 | 29.75 | 104.15 | 133.90 |
New EIS Contribution Table:
| Wages (RM) | Employee Contribution (RM) | Employer Contribution (RM) | Total Contribution (RM) |
| 5,100 | 10.10 | 10.10 | 20.20 |
| 5,200 | 10.30 | 10.30 | 20.60 |
| 5,300 | 10.50 | 10.50 | 21.00 |
| 5,400 | 10.70 | 10.70 | 21.40 |
| 5,500 | 10.90 | 10.90 | 21.80 |
| 5,600 | 11.10 | 11.10 | 22.20 |
| 5,700 | 11.30 | 11.30 | 22.60 |
| 5,800 | 11.50 | 11.50 | 23.00 |
| 5,900 | 11.70 | 11.70 | 23.40 |
| 6,000 | 11.90 | 11.90 | 23.80 |
| Exceeds 6,000 | 11.90 | 11.90 | 23.80 |
What Is the Impact?
For Employers
Increased Contributions: Employers will see a slight increase in their contribution amounts for employees earning over RM5,000.
For Employees
Decreased Take-Home Pay: The increase in employee contributions will lead to a slight reduction in take-home pay for those earning over RM5,000.
Sample: SOCSO contributions for employee earning above RM6,000
| Items | Employee Contribution (RM) | Employer Contribution (RM) |
| Previous Table | 24.75 | 86.65 |
| New Table | 29.75 | 104.15 |
- Employee Contribution: Increased from RM 24.75 to RM 29.75
- Employer Contribution: Increased from RM 86.65 to RM 104.15
Conclusion
The new SOCSO and EIS contribution rates are part of an ongoing effort by the Malaysian government to improve the social security system for workers. While the updates will lead to slightly higher contributions for employees earning more than RM5,000, they also offer enhanced protection and benefits. Please refer to the attachment below for infographics shared by SOCSO.
📣 For more information, please visit:
https://www.perkeso.gov.my/en/our-services/employer-employee/kadar-caruman.html