SOCSO CONTRIBUTION

SOCSO CONTRIBUTION/ PERKESO CONTRIBUTION


Definition Of Wages

All renumeration payable in money to an employee is taken into account as wages for the purposes of SOCSO contributions. These include the following payments:

• Salary
• Overtime payments
• Commission
• Payments for leave such as annual, sick and maternity leave, rest day, public holidays
• Allowances such as incentive, good behavior, cost of living (COLA)
• Service Charge

Example:

Salary = RM1000.00
Overtime Payments = RM 250.00
COLA = RM 100.00
Total Salary = RM1350.00

Contribution to be paid to SOCSO is RM30.40 (Refer the Attachment A-Contribution Table) However, the following payments are not considered as wages:

• Payments by employer to any pension or provident fund for employees
• Mileage claims
• Gratuity payment(s) for dismissal or retrenchments
• Annual bonus

(Note - The payments listed above are a few examples and are not comprehensive.If an employer needs further clarification pertaining to the definition of 'wages', please contact the nearest SOCSO office).

(Source: PERKESO website

http://www.perkeso.gov.my/en/contribution.html )