The Complete Guide to SOCSO


SOCSO (Social Security Organization), also known as PERKESO (PertubuhanKeselamatanSosial), was established in 1971 under the Ministry of Human Resources to provide social protection to all employees or workers in Malaysia.

Socso has several functions including:

·      Registration of employers and employees

·      Collection of contributions from employers and employees

·      Payment of benefits to employees and/or their dependents in the event of an accident

·      Providing physical and vocational rehabilitation benefits

·      Promoting awareness of occupational safety and health.

How to register with SOCSO

The employer and its employees must register with SOCSO no later than 30 days after the effective date of the law. To register, the employer must complete the Employer Registration Form (Form 1) and the Employee Registration Form (Form 2) and attach the appropriate documentation.

The employer or the employer's representative may enroll at the SOCSO counters. If an employer sends a representative to register, a power of attorney from the employer is required or will not be considered valid.

SOCSO has also created a foreign worker registration form.

SOCSO must be informed of any change in the name, address, type of business, status of the employer or employees.

Payments to SOCSO

Employers must remit their SOCSO payments to the SOCSO offices no later than the last day of the following month.

Employers process SOCSO payments, and there are three main ways to make their contributions and payments each month. Here are the payment options:

Banks: employers must use the pre-printed SOCSO contribution form or BorangCarumanBulanan/Borang8a form. These banks accept SOCSO payment transactions:

·      Maybank

·      CIMB Bank Berhad

·      Public Bank Berhad

·      Bank Muamalat

PejabatPos Malaysia (applicable to employers in Sabah and Sarawak only).

Internet Banking: employers can also deposit the monthly SOCSO contributions through internet banking. Employers must be registered with the banks listed here. Employers must open an account with one of the banks listed above and register this SOCSO payment service by contacting the branch where the account was opened. The employer must then submit a completed application form and provide the employee's name and required SOCSO contribution information.

SOCSO Branches - If an employer wishes to make payments directly to SOCSO branches, SOCSO will only accept payments in the form of checks or money orders.

EIS Contribution Rate

The Employment Insurance Scheme (EIS) contribution rate is 0.2% for the employer and 0.2% for the employee, based on the employee's monthly salary. The contribution rate varies depending on the monthly salary. You can refer to the EIS contribution table.

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