Apa Beza SOCSO dan PERKESO? Differences & Explanation for Employers

When employers in Malaysia handle payroll and statutory deductions, one question often arises: What is the difference between SOCSO and PERKESO?

You might see both names used in government portals, official forms, or even on employee payslips.

So here we are, to clear up the confusion and help employers understand how SOCSO and PERKESO work, what their responsibilities are, and how to manage contributions correctly.

What is SOCSO?

SOCSO stands for Social Security Organisation. It is the English name of the government agency under the Ministry of Human Resources responsible for Malaysia’s social security protection system, Pertubuhan Keselamatan Sosial (PERKESO).

Established in 1971, SOCSO is responsible for managing contributions and delivering benefits related to employee safety and well-being.

SOCSO covers various social security benefits, including:

Injury benefits: Coverage for accidents that occur at the workplace or while commuting.
Disability benefits: Temporary or permanent income support due to injury or illness.
Invalidity pension: Financial assistance for employees who suffer from chronic illnesses or health conditions unrelated to work that prevent them from continuing employment.
Dependants’ benefits: Payouts to the family if an employee passes away.
Employment Insurance System (EIS): Income support and job placement services for retrenched workers.

What is PERKESO?

PERKESO stands for Pertubuhan Keselamatan Sosial, which is simply the Bahasa Malaysia name for SOCSO.

In other words, SOCSO and PERKESO refer to the same organisation.

The confusion often comes from the fact that the English and Malay names are used interchangeably.

For example, government forms and official websites may use either term. Some employers use “SOCSO” in English documents, while others refer to “PERKESO” in Bahasa Malaysia communication. But both names refer to one agency with the same role and responsibilities.

Why Is There Confusion Between SOCSO and PERKESO?

Many employers get confused because of language differences. Some documents use SOCSO, while others use PERKESO.

Over time, this mix of terminology has led to misunderstandings, especially for new HR personnel or employers.

Another source of confusion is the appearance of both names in online systems (websites) or in older payroll forms, giving the impression that they are two separate entities or involve different deductions.

They are not. SOCSO is PERKESO. PERKESO is SOCSO.

What Do Employers Need to Know?

You must register all eligible employees with SOCSO/PERKESO and make monthly contributions according to their salary level and age group.

Contribution Categories

Based on the latest update (as of 1 July 2024), SOCSO/PERKESO contributions fall under two categories:

Skim Bencana Pekerjaan dan Skim Keilatan
- Applies to all employees under 60 years old.
- Foreign workers under 60 also contribute to this scheme starting from 1 July 2024.
- Maximum contribution by employer: RM86.65
- Maximum contribution by employee: RM24.75
Skim Bencana Pekerjaan
- Applies to employees over 60 years old.
- Also applies to employees who started contributing after age 55, and those receiving invalidity pension but still working.
- Only the employer contributes: 1.25% of the employee’s monthly salary (maximum RM61.90).

Coverage Types

Employment Injury Scheme: Protects employees from workplace-related accidents and commuting injuries.
Invalidity Scheme: Covers chronic illnesses or long-term health problems that prevent work.
EIS (Employment Insurance System): Provides temporary financial assistance and job-seeking support for employees who are retrenched or laid off.

Compliance and Penalties

Employers must calculate contributions accurately and remit payments on time.

Late contributions or underreporting wages can result in penalties and legal issues.

It is also crucial to keep employee records updated to reflect their age, salary level, and contribution status.

How to Register and Contribute

Employers must register their company and employees through SOCSO’s ASSIST portal or at a PERKESO office.

Monthly contributions must be calculated correctly based on the official rate tables and submitted by the due date.

Any late or incomplete contributions may result in penalties.

SOCSO vs PERKESO

Term Used	Meaning
SOCSO	English name: Social Security Organisation
PERKESO	Bahasa Malaysia name: Pertubuhan Keselamatan Sosial
Contribution Type	Both refer to the same contribution system managed by the same agency
Schemes Involved	Employment Injury Scheme, Invalidity Scheme, and Employment Insurance
Who Must Contribute	All employers in the private sector

Common Mistakes by Employers

Some employers mistakenly treat SOCSO and PERKESO as two different payments, leading to confusion or duplicate records. Others may use outdated forms that separate both names.

Another common mistake is underreporting wages or assigning employees to the wrong scheme, especially when they turn 60.

To avoid these problems, HR teams should:

Refer to the latest contribution tables.
Update employee age and salary records regularly.
Use updated forms and online systems provided by SOCSO/PERKESO.

FAQs

Is there a difference between SOCSO and PERKESO?

No. They are the same organisation. SOCSO is the English name; PERKESO is the Bahasa Malaysia name.

Are SOCSO and EIS both under PERKESO?

Yes. PERKESO (SOCSO) manages both social security contributions and the Employment Insurance System (EIS).

Do foreign workers contribute to SOCSO?

Yes, as of 1 July 2024, foreign workers aged 60 and below contribute under Skim Bencana Pekerjaan dan Skim Keilatan.

How do I register for PERKESO/SOCSO?

Employers can register online via the ASSIST portal or visit the nearest SOCSO office.

Can employers be penalised for late payment?

Yes. Late or missed contributions can result in fines or legal action.

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