SOCSO Enforce New Salary Ceiling Limit for Contributions

SOCSO Enforce New Salary Ceiling Limit for Contributions

Are you Aware of the Latest Announcement by SOCSO on New Salary Ceiling Limit?

Effective from 1st September 2022, SOCSO will increase the monthly salary ceiling limit from RM4,000 to RM5,000 for contributions.

i. How would this affect the SOCSO and EIS contributions?

• Additional SOCSO and EIS contributions for employees who earn monthly salaries between RM4,000 and RM5,000.

• Flat contribution rates for both SOCSO and EIS for employees who earn RM5,000 or more per month.

For the latest contribution rate, please refer to the link below

https://www.perkeso.gov.my/en/rate-of-contribution.html

ii. What Should the Employers Do?

• Employers must make contribution payments in accordance with the new wage ceiling limit adjustment.

• Employers are requested to record the contribution deductions in the pay slip or statements of their respective employees.

iii. Transition Period for Employers

The transition period for employers to comply with the new contribution rate is six (6) months, starting from 1st September 2022 to 28th February 2023.

Source:

Employment Insurance System (Amendment) Act 2022:

- https://lom.agc.gov.my/act-detail.php?type=amendment&act=A1657&lang=BI

- Employees’ Social Security (Amendment) Act 2022:

- https://lom.agc.gov.my/act-detail.php?type=amendment&act=A1658&lang=BI

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