SOCSO salary ceiling increased to RM6,000 starting October 1
The Social Security Organisation (SOCSO) salary ceiling for contributions has been increased from RM5,000 to RM6,000 per month by the Ministry of Human Resources, effective October 1, 2024.
The increase impacts about 1.5 million of local and foreign employees (or about 15.5%) of contributors to SOCSO in Malaysia.
Employers must comply with the new rate and record the contributions in the pay statements or payslips of employees for record-keeping and inspection.
Employees under a service contract or apprenticeship are required to be registered and contribute to SOCSO, with a contribution ceiling based on a monthly salary of RM6,000.
Additional Information:
- The amendments were suggested in February and approved by Parliament in July.
- The 20.2% increase to the current interest payment rate aims to improve benefits for employees earning above RM5,000.
- The new rate is outlined in amendments made to the Employee Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).
- Under Act 4, enhanced employee benefits include the Temporary Disability Benefit, Permanent Disability Benefit, Dependent’s Benefit, and Invalidity and Survivor’s Pensions.
- Under Act 800, improved benefits include the Jobseeker’s Allowance, Reduced Income Allowance, and Early Re-employment Allowance.
- In April 2024, a RM1,000 or one year in jail was issued by the Magistrate’s Court to a beauty centre employer for failure to register the company with SOCSO.
