Complete Guide to SOCSO (PERKESO) in Malaysia 2025

✅ Updated for 2025: This article reflects the latest SOCSO contribution rates and benefits for the 2025 year.

SOCSO (Social Security Organisation), also known as PERKESO, provides social security protection for Malaysian employees. This comprehensive guide explains how SOCSO works, contribution rates, coverage, and the benefits you're entitled to.

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What is SOCSO (PERKESO)?

The Social Security Organisation (SOCSO), or Pertubuhan Keselamatan Sosial (PERKESO), is a Malaysian government agency that administers social security protection schemes for employees. Established under the Employees' Social Security Act 1969, SOCSO provides financial protection and medical coverage for employees who suffer from work-related injuries, occupational diseases, or invalidity.

SOCSO operates two main schemes:

Employment Injury Scheme: Covers work-related accidents and occupational diseases
Invalidity Pension Scheme: Provides protection for employees who become permanently disabled (not work-related)

Who Must Contribute to SOCSO?

SOCSO contributions are mandatory for:

All Malaysian employees earning RM4,000 or less per month (when first employed)
Employees who were already contributing before their salary exceeded RM4,000
Employees working in the private sector
Foreign workers (Employment Injury Scheme only, since June 2019)

⚠️ Important: Once You're In, You're In

If you start contributing to SOCSO when your salary is RM4,000 or below, you must continue contributing even if your salary increases beyond RM4,000. SOCSO coverage is for life once you're registered.

SOCSO Contribution Rates 2025

SOCSO contributions are based on your monthly salary and are shared between you and your employer. Effective October 1, 2024, the wage ceiling has been increased from RM5,000 to RM6,000 per month.

📌 Important Update (October 2024): The SOCSO wage ceiling has been raised to RM6,000. Employees earning above RM6,000 will have their contributions capped at the RM6,000 level, providing better protection and enhanced benefits.

Monthly Salary (RM)	Employee Contribution	Employer Contribution	Total Monthly
Up to 1,000	RM4.95	RM17.25	RM22.20
1,001 - 2,000	RM9.90	RM34.50	RM44.40
2,001 - 3,000	RM14.85	RM51.75	RM66.60
3,001 - 4,000	RM19.80	RM69.00	RM88.80
4,001 - 5,000	RM24.75	RM86.25	RM111.00
5,001 - 5,500	RM27.25	RM95.35	RM122.60
5,501 - 6,000	RM29.75	RM104.15	RM133.90
6,001 and above	RM29.75	RM104.15	RM133.90

Note: Employee contribution is approximately 0.5% of salary, while employer contributes approximately 1.75% of salary. The exact amounts are based on SOCSO's contribution table. For salaries exceeding RM6,000, contributions are capped at the RM6,000 level (RM29.75 for employee, RM104.15 for employer).

SOCSO Benefits and Coverage

1. Employment Injury Scheme Benefits

If you suffer a work-related injury or occupational disease, you're entitled to:

Medical Benefits: Free medical treatment at SOCSO panel clinics and hospitals
Temporary Disablement Benefit: 80% of your salary during recovery (up to 24 months)
Permanent Disablement Benefit: Monthly pension if permanently disabled
Dependents' Benefit: Monthly pension for dependents if employee dies
Funeral Benefit: RM2,000 for funeral expenses
Rehabilitation: Physical and vocational rehabilitation services
Education Benefit: Financial assistance for children's education

2. Invalidity Pension Scheme Benefits

If you become permanently disabled (not work-related) and can no longer work:

Invalidity Pension: Monthly pension based on your average monthly wages
Constant Attendance Allowance: Additional RM200/month if you need constant care
Survivors' Pension: Monthly pension for dependents if you pass away
Funeral Benefit: RM2,000 for funeral expenses

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SOCSO vs EIS: What's the Difference?

Feature	SOCSO	EIS
Purpose	Work injury & invalidity protection	Unemployment insurance
Coverage	Accidents, occupational diseases, permanent disability	Job loss (retrenchment, company closure)
Employee Rate	~0.5% (fixed amounts)	0.2% of salary
Employer Rate	~1.75% (fixed amounts)	0.2% of salary
Salary Threshold	RM4,000 (first employment)	No threshold

Frequently Asked Questions

Is SOCSO mandatory in Malaysia?

Yes, SOCSO is mandatory for all Malaysian employees earning RM4,000 or less when first employed. Once you're registered, you must continue contributing even if your salary increases. Foreign workers must also contribute to the Employment Injury Scheme since June 2019.

Can I withdraw my SOCSO contributions?

No, SOCSO is not a savings scheme like EPF. You cannot withdraw your contributions. SOCSO is an insurance scheme that provides benefits only when you suffer work-related injuries, occupational diseases, or permanent invalidity. The contributions pay for your insurance coverage.

What happens if I get injured at work?

Report the injury to your employer immediately and seek treatment at a SOCSO panel clinic or hospital. Your employer will file a claim with SOCSO. You'll receive free medical treatment and 80% of your salary during recovery. If permanently disabled, you'll receive a monthly pension for life.

Do I still contribute to SOCSO if my salary exceeds RM4,000?

Yes! If you were already contributing to SOCSO when your salary was RM4,000 or below, you must continue contributing for life, regardless of salary increases. However, if you were never registered with SOCSO and your first salary is above RM4,000, you don't need to contribute.

Can foreigners contribute to SOCSO?

Yes, since June 1, 2019, foreign workers must contribute to SOCSO's Employment Injury Scheme. However, they are not covered under the Invalidity Pension Scheme. Both employee and employer contribute based on the same rate table as Malaysian employees.

How much is SOCSO deduction from my salary?

SOCSO deduction is approximately 0.5% of your salary, based on fixed amounts in SOCSO's contribution table. For example, if you earn RM3,000/month, your SOCSO deduction is RM14.85/month. Your employer contributes an additional RM51.75, making the total RM66.60/month.

What is covered under work-related injury?

Work-related injuries include accidents that occur while performing work duties, during work hours, or while commuting to/from work. This includes occupational diseases caused by work conditions. Coverage extends to accidents during official work travel and company events.

How do I claim SOCSO benefits?

Your employer must report the injury/accident to SOCSO within 7 days using Form 21. Seek treatment at SOCSO panel facilities. For invalidity claims, submit Form 10 with medical reports. SOCSO will assess your claim and notify you of the decision. Benefits are typically paid within 30-60 days of approval.

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Conclusion

SOCSO provides essential protection for Malaysian employees against work-related injuries and permanent invalidity. While the monthly deduction is small (around 0.5% of salary), the benefits can be life-changing if you ever need them.

Key takeaways:

SOCSO is mandatory for employees earning RM4,000 or less when first employed
Once registered, you contribute for life regardless of salary increases
Covers work-related injuries, occupational diseases, and permanent invalidity
Provides free medical treatment, income replacement, and rehabilitation
Cannot be withdrawn—it's insurance, not savings

Use our calculator to see exactly how SOCSO affects your take-home salary along with EPF, EIS, and income tax!