Business
Malaysia — Business: Payroll
For Malaysian citizens/PRs under 60, employer EPF contribution is 13% for monthly wages up to RM5,000, 12% above that (no wage ceiling — EPF applies to total monthly wages). Since October 2025, EPF became mandatory for foreign workers at 2% each (employer + employee). SOCSO (employment injury + invalidity): employer ~1.75%, employee 0.5%, capped at the RM6,000/month wage ceiling (raised from RM4,000 in October 2024). EIS (Employment Insurance System): both employer and employee contribute 0.2% each (0.4% total) of monthly wages, applying to employees under 60 earning at least RM30/month, also capped at RM6,000. All contributions are due by the 15th of the following month; late EPF payments incur a charge of the EPF dividend rate + 1% per annum (minimum RM10).
Key facts
- EPF employer rate: 13% (wages ≤RM5,000) or 12% (above), no wage ceiling; foreign workers now mandatory at 2% each since Oct 2025.
- SOCSO: employer ~1.75%, employee 0.5%, capped at RM6,000/month wage ceiling (since Oct 2024).
- EIS: 0.2% each (0.4% total), for employees under 60 earning RM30+/month, capped at RM6,000.
- All contributions due by the 15th of the following month; late EPF payment penalty = dividend rate + 1%/annum, min RM10.
Costs
- EPF employer rate (wages ≤RM5,000): 13%
- EPF employer rate (wages >RM5,000): 12%
- SOCSO employer rate: ~1.75%
- EIS rate (each party): 0.2%
Timelines
- Monthly contribution deadline: 15th of the following month
Common mistakes
- Overlooking the new mandatory 2% EPF contribution for foreign workers, in effect since October 2025.
- Miscalculating SOCSO/EIS against wages above the RM6,000 ceiling — contributions cap out at that wage level.