EPF, SOCSO & EIS: What Malaysian Employers Actually Need to Pay

EPF, SOCSO and EIS are normal parts of employing staff in Malaysia, but the rates and eligibility rules can change. Do not rely on an old spreadsheet from three years ago.

EPF has employer and employee portions

Employers deduct the employee share and add the employer share according to the current EPF schedule. The rate can depend on salary, age and employee status.

What to check

• Current Third Schedule
• Employee age
• Monthly wages
• Citizenship or status

SOCSO and EIS are separate

PERKESO manages social security contributions and the Employment Insurance System. These follow their own schedules and eligibility rules.

Do not mix them together

• SOCSO protects against covered employment related risks
• EIS supports eligible workers who lose employment
• Both have their own contribution rules

Use official calculators or payroll software

Payroll is not the place to guess.

Before paying

• Confirm wage components
• Check current contribution tables
• Keep payroll records
• Pay by the required deadlines

My view

I keep this simple on purpose. For actual payroll, check the latest information directly with KWSP and PERKESO, or ask your payroll professional, before making deductions.

Checked 4 Oct 2026 against official sources: kwsp.gov.my, perkeso.gov.my. Rules and rates can change, so always confirm the latest before acting.