How to calculate EPF, SOCSO and EIS contributions in 2026

Every month a Malaysian employer has to work out three statutory contributions for each employee: EPF, SOCSO and EIS. Each one has its own rates, its own table and its own rules for age and nationality. This guide explains how they work in 2026 and walks through three salaries.

If you only need the figures, use our free contribution calculator at /contribution-calculator. Type the salary once and see every contribution.

Who pays what

• EPF (KWSP): the employee pays 11% of wages. The employer pays 13% on wages of RM5,000 or less and 12% on wages above RM5,000.
• SOCSO (PERKESO, Act 4): the employer pays about 1.75% (1.25% for employment injury and 0.5% for invalidity). The employee pays about 0.5% for invalidity.
• EIS (PERKESO, Act 800): the employer and the employee each pay about 0.2%.
• LINDUNG 24 Jam: about 0.75%, paid only by the employee. The employer deducts it from salary and pays it to PERKESO with SOCSO.

The employee's share comes out of their salary. The employer's share is paid on top.

Use the tables, not the percentages

The percentages above are a guide. The amount you pay comes from the official contribution tables. For EPF that is the Third Schedule of the EPF Act 1991. For SOCSO and EIS it is PERKESO's contribution schedules.

Each table splits wages into bands. You find the band the wage falls in and read off the fixed amounts. For EPF the band amount is worked out on the top of the band. A salary of RM2,990 is in the RM2,980.01 to RM3,000 band, so it pays the same as RM3,000. EPF uses the table for wages up to RM20,000. Above that, the percentage applies to the actual wage, rounded up to the next ringgit.

The EPF employer rate: RM5,000 and below, or above

The employer's EPF rate depends on the wage. At RM5,000 or less it is 13%. Above RM5,000 it drops to 12%. The employee's 11% does not change.

The SOCSO and EIS wage ceiling

SOCSO and EIS stop at a wage of RM6,000 a month. This ceiling rose from RM5,000 on 1 October 2024. Anyone earning more than RM6,000 pays the same SOCSO and EIS as someone earning exactly RM6,000. EPF has no such ceiling.

Worked examples

These examples are for a Malaysian employee under 60 whose salary is their only pay for the month. Amounts are from the official tables.

Example 1: salary RM3,000

• EPF, band RM2,980.01 to RM3,000: employee RM330, employer RM390.
• SOCSO, band RM2,900.01 to RM3,000: employee RM14.75, employer RM51.65.
• EIS, band RM2,900.01 to RM3,000: employee RM5.90, employer RM5.90.
• Total deducted from the employee: RM350.65.
• Total paid by the employer on top: RM447.55.
• If the employee is in LINDUNG 24 Jam, deduct a further RM22.15.

Example 2: salary RM5,500

• EPF, band RM5,400.01 to RM5,500: employee RM605, employer RM660. The employer rate is 12% because the wage is above RM5,000.
• SOCSO, band RM5,400.01 to RM5,500: employee RM27.25, employer RM95.35.
• EIS, band RM5,400.01 to RM5,500: employee RM10.90, employer RM10.90.
• Total deducted from the employee: RM643.15.
• Total paid by the employer on top: RM766.25.
• If the employee is in LINDUNG 24 Jam, deduct a further RM40.85.

Example 3: salary RM7,000

• EPF, band RM6,900.01 to RM7,000: employee RM770, employer RM840.
• SOCSO, wages above RM6,000: employee RM29.75, employer RM104.15.
• EIS, wages above RM6,000: employee RM11.90, employer RM11.90.
• Total deducted from the employee: RM811.65.
• Total paid by the employer on top: RM956.05.
• If the employee is in LINDUNG 24 Jam, deduct a further RM44.65.

In example 3 the SOCSO and EIS amounts are capped at the RM6,000 level. The EPF amount is not.

Employees aged 60 and over

Once an employee turns 60, all three contributions change.

• EPF: a Malaysian citizen aged 60 or over pays nothing. The employer pays 4%. On RM3,000 that is RM120 from the employer. Permanent residents use different rates, so check the Third Schedule for them.
• SOCSO: the employee moves to the second category, which covers employment injury only. The employer pays about 1.25% and the employee pays no SOCSO. On RM3,000 the employer pays RM36.90. The second category also applies to anyone who first starts contributing at 55 or over.
• EIS: stops at 60. Employees who are 57 or over and never contributed before 57 are not covered either.
• LINDUNG 24 Jam has no age limit, so an employee over 60 who has not opted out still pays it.

Foreign workers

• EPF: compulsory from October 2025 wages. The employer pays 2% and the worker pays 2%. Domestic helpers are excluded.
• SOCSO: foreign workers are covered for employment injury and, since 1 July 2024, for invalidity. The employer pays 1.25% plus 0.5%, and the worker pays 0.5%.
• EIS: does not apply. The Act covers Malaysian citizens and permanent residents only.
• LINDUNG 24 Jam: compulsory for foreign workers. They cannot opt out.

LINDUNG 24 Jam

LINDUNG 24 Jam started on 1 June 2026. It covers employees for accidents outside working hours. The employee pays the whole contribution. The rate is 0.75% until 31 May 2028, then 1% and later 1.25%, on wages up to RM6,000. The employer pays nothing but makes the deduction.

Since 8 July 2026 it has been voluntary for Malaysian employees. Local employees are in the scheme unless they opt out. The opt-out window ran from 13 July to 31 August 2026. Anyone who did not opt out stays in, and anyone who opted out can rejoin later. You can check each employee's status on PERKESO's ASSIST portal.

When to pay

Contributions for a month must reach EPF and PERKESO by the 15th of the following month. October wages, for example, are due by 15 November. PERKESO charges interest of 6% a year on late SOCSO and EIS payments. EPF also charges for late payment.

A quick checklist

• Look up each wage in the official tables. Do not just apply a percentage.
• Use 12% for the employer's EPF once the wage is above RM5,000.
• Cap SOCSO and EIS at RM6,000.
• Switch employees to the 60-and-over rates from the month they turn 60.
• Deduct EPF at 2% each side for foreign workers, and leave out EIS.
• Check who is in LINDUNG 24 Jam before you run payroll.
• Pay by the 15th of the following month.

This article is general information, not legal or tax advice. Check the official schedules from KWSP and PERKESO before you change your payroll.

emsy works out EPF, SOCSO, EIS and PCB every payroll run, free for up to 5 staff.