Employees' Social Security (SAP Library - Payroll Malaysia (PY-MY))

Employees' Social Security

Purpose

Employees' Social Security (SOCSO) is the social security contributions for the employee. All employees who earn a salary of less than MYR 2,000 must contribute to this scheme. Contributions are based on the employee’s salary and are derived from the table supplied by the government.

To facilitate this, SOCSO supplies the following categories:

When an employee has started contributing to SOCSO, the employee must continue to contribute until retirement. This includes the employer’s contribution.

If an employee has never contributed to SOCSO before but would like to start, the employee can do so:

If the employee is 50 years of age or more, only the employer is required to contribute to the fund, and not the employee.