Payroll compliance in Malaysia requires employers to accurately calculate and remit contributions to multiple statutory bodies every month. Among the most important are contributions to SOCSO (Social Security Organisation) and EIS (Employment Insurance System). With updated contribution rates taking effect in 2026, HR and payroll teams need a reliable reference to avoid underpayment penalties, audit issues, and employee disputes.
This guide serves as your complete cheat sheet for 2026 SOCSO and EIS contribution brackets, explaining who must contribute, how rates are calculated, and what changes to be aware of.
What Is SOCSO?
SOCSO, or Pertubuhan Keselamatan Sosial, is Malaysia’s social security scheme administered under the Employees’ Social Security Act 1969. It provides financial protection to employees and their dependants in cases of work-related injuries, occupational diseases, invalidity, and death.
Two Schemes Under SOCSO
- Employment Injury Scheme (EIS-SOCSO) — Covers accidents at work, commuting accidents, and occupational diseases
- Invalidity Scheme — Covers invalidity and death from causes not related to employment
Note: The Invalidity Scheme applies to employees below 60 years of age. Employees aged 60 and above are only covered under the Employment Injury Scheme.
What Is EIS (Employment Insurance System)?
EIS is a separate scheme introduced in 2018 under the Employment Insurance System Act 2017, administered by SOCSO. It provides short-term financial assistance to employees who have lost their jobs and supports their return to employment through job search allowances, training, and career placement services.
2026 SOCSO Contribution Brackets
SOCSO contributions are based on the employee’s actual monthly wage. Both employer and employee contribute, with the employer’s share being higher. Below is a summary of the SOCSO contribution structure:
| Monthly Wage (RM) | Employer Contribution (RM) | Employee Contribution (RM) | Total (RM) |
|---|---|---|---|
| Up to RM30 | 0.40 | 0.10 | 0.50 |
| RM30.01 – RM50 | 0.70 | 0.20 | 0.90 |
| RM50.01 – RM70 | 1.10 | 0.30 | 1.40 |
| RM100.01 – RM200 | 2.20 | 0.60 | 2.80 |
| RM200.01 – RM300 | 3.90 | 1.05 | 4.95 |
| RM300.01 – RM400 | 5.45 | 1.50 | 6.95 |
| RM400.01 – RM500 | 7.00 | 1.90 | 8.90 |
| RM500.01 – RM600 | 8.55 | 2.35 | 10.90 |
| RM600.01 – RM700 | 10.10 | 2.75 | 12.85 |
| RM700.01 – RM800 | 11.60 | 3.20 | 14.80 |
| RM800.01 – RM900 | 13.15 | 3.60 | 16.75 |
| RM900.01 – RM1,000 | 14.75 | 4.00 | 18.75 |
| RM1,000.01 – RM1,100 | 16.25 | 4.45 | 20.70 |
| RM1,100.01 – RM1,200 | 17.80 | 4.85 | 22.65 |
| RM1,200.01 – RM1,300 | 19.35 | 5.30 | 24.65 |
| RM1,500.01 – RM1,600 | 23.50 | 6.45 | 29.95 |
| RM2,000.01 – RM2,100 | 30.95 | 8.50 | 39.45 |
| RM3,000.01 – RM3,100 | 46.40 | 12.75 | 59.15 |
| RM4,000.01 – RM4,100 | 61.80 | 17.00 | 78.80 |
| Above RM5,000 | Capped at RM5,000 wage ceiling | Capped at RM5,000 | – |
Note: The SOCSO wage ceiling is RM5,000 per month. Contributions are capped at this level regardless of actual salary.
2026 EIS Contribution Brackets
EIS contributions are shared equally between employer and employee, each contributing 0.2% of the employee’s monthly wage, for a combined total of 0.4%.
| Monthly Wage (RM) | Employer Contribution (RM) | Employee Contribution (RM) | Total (RM) |
|---|---|---|---|
| Up to RM30 | 0.05 | 0.05 | 0.10 |
| RM30.01 – RM50 | 0.10 | 0.10 | 0.20 |
| RM100.01 – RM200 | 0.30 | 0.30 | 0.60 |
| RM500.01 – RM600 | 1.10 | 1.10 | 2.20 |
| RM1,000.01 – RM1,100 | 2.10 | 2.10 | 4.20 |
| RM2,000.01 – RM2,100 | 4.10 | 4.10 | 8.20 |
| RM3,000.01 – RM3,100 | 6.10 | 6.10 | 12.20 |
| RM4,000.01 – RM4,100 | 8.10 | 8.10 | 16.20 |
| Above RM5,000 | Capped at RM5,000 | Capped at RM5,000 | – |
Note: EIS wage ceiling is also RM5,000 per month.
Who Is Eligible to Contribute?
SOCSO
- All Malaysian citizens and permanent residents employed in the private sector
- Foreign workers are covered only under the Employment Injury Scheme
- Employees earning RM5,000 and below contribute based on the actual wage bracket
- Employees earning above RM5,000 contribute at the RM5,000 ceiling rate
EIS
- All Malaysian citizens and permanent residents
- Does NOT apply to foreign workers, domestic servants, self-employed persons, or civil servants covered under government pension
- Applies to employees aged 18 to 60
Submission Deadlines and Penalties
Employers must submit SOCSO and EIS contributions by the 15th of the following month. Late submissions are subject to penalties under the respective acts, including late payment interest and potential prosecution.
Frequently Asked Questions
What is the wage ceiling for SOCSO contributions in 2026?
The wage ceiling remains at RM5,000 per month. Employees earning more than RM5,000 are still covered, but contributions are calculated based on the RM5,000 ceiling.
Are contract workers covered under SOCSO?
Yes, as long as they are employed under a contract of service and meet the eligibility criteria.
Can payroll software automate SOCSO and EIS calculations?
Yes. Modern payroll systems automatically calculate contributions based on the employee’s wage and the current contribution table, reducing manual errors significantly.
Conclusion
Staying compliant with SOCSO and EIS contribution requirements is a non-negotiable responsibility for Malaysian employers. With updated 2026 brackets in place, it is essential that your payroll system reflects the current contribution tables accurately. Using a modern, automated payroll solution ensures that calculations are always correct, submissions are made on time, and your business remains fully compliant with Malaysian employment law.
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