SOCSO (Social Security Organisation), also known as PERKESO (Pertubuhan Keselamatan Sosial), was established in 1971 under the Ministry of Human Resources (formerly known as the Ministry of Labour) to provide social security protections to all employees in Malaysia.
To put it simply, the objective of SOCSO is to provide financial and other forms of social security protection to employees employed in the private sector if they sustain injuries on the job, experience medical emergencies, develop occupational illnesses, or pass away.
The Benefits of SOCSO
Social insurance provides Employment Injury Insurance and Invalidity Pension Scheme to all members.
Employment Injury Insurance
Medical Benefit
Temporary Disablement Benefit
Permanent Disablement Benefit
Constant Attendance Allowance
Dependent's Benefit
Funeral Benefit
Rehabilitation Benefit
Education Benefit
Invalidity Pension Scheme
Invalidity Grant
Invalidity Pension
Constant Attendance Allowance
Survivors Pension
Funeral Benefit
Rehabilitation Benefit
Education Benefit
Benefits to Employer
To reduce the disability duration of Insured Persons with injuries or diseases and enable a safe and fast return to work, and increase productivity thereafter
To be able to retain experienced and highly skilled workers at the workplace
To reduce training and hiring costs of temporary workers
To optimize the employees’ rehabilitation period so they can return to work faster and increase their productivity
To provide work modification recommendations to accommodate employees with injuries or diseases
Employees’ Social Security Act,1969 and Employees’ Social Security (General) Regulations, 1971, apply to all industries having one or more employees. Hence, within the first 30 days of hiring a new employee, the act requires both the new employer and the new employee must register with SOCSO.
Type of Employers
Principal Employer
An employer who employs an employee directly under a contract of service or apprenticeship. The employer is responsible for all matters relating to services and payment of wages.
Immediate Employer
An employer who employs employees to perform work under the supervision of the principal employer. This includes a person who has a contract of service with an employee and temporarily lends or leases that employee's service to a principal employer.
Employer’s Responsibility
The principal and immediate employers who employ one or more employees are responsible for registering and contributing to Social Security Organisation (SOCSO) based on the rates specified under the Employees’ Social Security Act, 1969, administered by SOCSO. The principal employers are also responsible for ensuring that all workers employed by immediate employers are registered with SOCSO and that the contributions are paid accordingly. Employers are responsible for reporting all work-related accidents to their workers within 48 hours of notification.
The Employees' Social Security Act of 1969 does not cover the following employees
Federal and State Government permanent employees
Domestic servants
Self-employed
It is compulsory for an employer, who is a wife or a husband who employs their spouse to work in her or his business enterprise under the Employees’ Social Security Act 1969 (Act 4) and Employment Insurance System Act (Act 800), to register and contribute to SOCSO with effect from 1 July 2018, based on the procedure and rate of contribution stipulated by both Acts.
Failure of an employer to do so is an offence under the Act, and if convicted, an employer shall be liable to imprisonment for up to two years or a fine not exceeding RM10,000.00, or both.
Coverage of the Workers Social Security Act 1969
Employers must pay monthly contributions for each eligible employee according to the rate specified under the Employees’ Social Security Act 1969.
SOCSO payments should include contributions from both employees and their employers.
These contributions are divided into two (2) types, namely:
Both contribution rates are based on the total monthly wages paid to the employee.
The rate of contribution is capped at a monthly wage ceiling of RM5,000.00.
Payments Subject to SOCSO Contribution
Any remuneration payable in money to an employee is taken as wages/salaries for purposes of SOCSO contributions. This includes the following payments:
Salary
Overtime payments
Commission and service charge
Payments for leave; such as annual, sick, maternity, rest day, public holidays, etc.
Allowances include incentives, shifts, food/meal, cost of living, housing, etc.
Contribution Payment Period
Contributions payable for any month must be paid no later than the 15th day of each succeeding month (e.g., contributions for July 2022 must be paid by 15 August 2022).
Interest on late payment of contributions will be imposed at a rate of 6% per annum for each day of contributions not paid within the stipulated period.
Update Notice on Contribution Amount for Act 4 and Act 800 under the Increment of the Wage Ceiling Limit
Effective 1st September 2022, PERKESO will enforce a new wage ceiling for contributions from RM4,000 to RM5,000 per month.
The contribution amount that applies to employees with salaries exceeding RM4,000 per month is stated in the Third Schedule, Act 4 and the Second Schedule, Act 800.
For employees with salaries exceeding RM5,000 per month, the contribution amount is subject to the wage ceiling of RM5,000.
Accordingly, the employer shall make the contribution payment for the month of September 2022 and the subsequent months according to the new wage ceiling.
Registration
An employer must complete the Employer's Registration Form (Form 1), the Employee's Registration Form (Form 2), and the other online documents that may be found on the ASSIST Portal to complete the registration process.
Using the ASSIST Portal, any changes regarding the name/address/type/status of ownership of the company or employee can be made.
The SOCSO will no longer utilise the Social Security Number for any purposes and will instead use the Identity Card Number provided by the National Registration Department.
Registration Process
Step 1 (Download)
Step 2 (Complete Forms)
Complete the forms listed in Step 1. Scan the filled forms separately. Prepare a copy of the following documents:
Company supporting documents,
Copy of Certification of Company/Business Registration from SSM; or
Section 14 – Superform
Section 15 – Notice of registration
Section 17 – Certificate of Incorporation
Refer to Senarai Semak Dokumen Sokongan.
Step 3 (Get ID)
Get ID to upload the documents into the system (ASSIST system) - email the Borang Permohonan Enrolment Penggunaan Portal ASSIST to: idportal@perkeso.gov.my Your ID and a temporary password will be emailed to you.
Step 4 (Upload Forms)
Login to the ASSIST using the ID emailed to you and upload the registration forms along with the supportive documents (refer to Step 1 and Step 2).
For reference, please refer to our Panduan Pendaftaran Portal ASSIST.
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