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Home / Resources / Blog /Deadlines & Penalties for SOCSO, EPF, PCB/Form E, and HRD Levy in Malaysia
Deadlines & Penalties for SOCSO, EPF, PCB/Form E, and HRD Levy in Malaysia

Deadlines & Penalties for SOCSO, EPF, PCB/Form E, and HRD Levy in Malaysia

Ivana
by Ivana
Sep 23, 2025 at 03:06 PM

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If we are talking about payroll, employers' responsibility is not only to pay the salary on time, but also to ensure that statutory contributions and tax deductions are submitted correctly every month. Missing these deadlines can lead to fines, interest charges, and in some cases, prosecution.

To help you comply with the government and avoid costly mistakes, here we share the key deadlines and penalties for SOCSO + EIS, EPF, PCB/Form E, and the HRD Levy.

SOCSO + EIS Deadlines & Penalties

Deadline

Employers must submit SOCSO (Social Security Organisation) and EIS (Employment Insurance System) contributions by the 15th of the following month. If the 15th falls on a public holiday, payment must be made on the last working day before it.

Penalties for Late Submission

Late contributions are charged 6% per annum, calculated daily. The minimum fine is RM5 per month, even if the calculated amount is lower.

Under the Employees’ Social Security Act 1969, employers can also face compounding or prosecution for late registration, failure to maintain records, or late reporting of accidents. Penalties include fines of up to RM10,000 or imprisonment of up to two years.

Employer’s Responsibility

  • Keep accurate employee registers and contribution schedules.

  • Report workplace or commuting accidents promptly; failing to do so can lead to penalties and delays in employees receiving benefits.

  • Ensure compliance with both the social security scheme and the invalidity scheme, which also cover foreign workers under certain conditions.

EPF Deadlines & Penalties

Deadline

EPF (Employees Provident Fund) contributions must be paid by the 15th of the following month. If the date falls on a public holiday, the deadline is extended to the next working day.

Penalties for Late Submission

Interest charges are based on the EPF dividend rate for the year, plus 1%. A minimum interest charge of RM10 applies, rounded up to the nearest ringgit.

If contributions are paid later than the last day of the following month, employers must also pay a dividend charge, credited to employees’ EPF savings. Persistent non-compliance can result in legal action under the EPF Act 1991.

Employer’s Obligation

  • Deduct and remit employee and employer contributions each month.

  • Submit correct records, including wages, allowances, and other relevant details.

  • Ensure coverage of all employees, including permanent, contract, and part-time staff.

PCB (Monthly Tax Deduction) & Form E Deadlines

Deadline for PCB (Potongan Cukai Bulanan / Monthly Tax Deduction)

PCB must be remitted to the Inland Revenue Board (LHDN) by the 15th of the following month.

Penalties for Late Submission

Employers who fail to remit PCB can be fined between RM200 and RM20,000, face up to 6 months’ imprisonment, or both. If PCB is not deducted at all, the unpaid amount becomes a debt to the Government.

An additional 10% penalty applies to unpaid tax balances after 30 April following the year of assessment. If unpaid after 60 more days, another 5% penalty is imposed.

Form E Annual Filing Deadline & Penalties

Employers must submit Form E (employer’s annual return of employees’ remuneration) by 30 April of the following year. Late filing or non-submission can result in fines and prosecution under the Income Tax Act 1967.

Resident vs Non-Resident Employees Consideration

Resident employees (≥182 days in Malaysia) are taxed progressively with eligibility for reliefs. Non-resident employees are generally taxed at a flat rate, but employers are still responsible for PCB deductions.

HRD Levy Deadlines & Penalties

The HRD Levy is payable by registered employers under the Pembangunan Sumber Manusia Berhad Act 2001. Employers with 10 or more employees in covered sectors must contribute 1% of employees’ monthly wages (basic salaries fixed) to HRD Corp.

Deadline

Payment must be made by the 15th of the following month.

Penalties for Non-Compliance

Employers who fail to pay can be fined up to RM20,000, imprisoned for up to two years, or both. HRD Corp also imposes 10% yearly interest on late payments, calculated daily.

Payments, including penalties, must be made via e-SLIP on the HRD Corp portal.

Checklist for Employers

To avoid missing deadlines and facing penalties, employers should:

  1. Maintain a Compliance Calendar

Mark the 15th of every month as the statutory submission deadline for SOCSO, EIS, EPF, PCB, and HRD Levy.

  1. Keep Accurate Records

Employee registers, payslips, contribution schedules, and tax filings must be properly stored.

  1. Use Automation Tools

Payroll software can automatically calculate contributions and generate files for submission to EPF, SOCSO, LHDN, and HRD Corp.

  1. Stay Updated

Regulatory changes happen regularly. Employers should check with SOCSO, EPF, LHDN, and HRD Corp for circulars and updates.

FAQs

What happens if I miss the SOCSO or EIS deadline?

Interest of 6% per annum is imposed, with a minimum charge of RM5 per month. Employers may also face fines or prosecution under the Employees’ Social Security Act 1969.

Can late EPF payments be backdated?

Yes, but employers must pay additional interest and dividend charges. The payment will be credited to employees’ EPF accounts, along with the late fees.

What are the penalties for not filing Form E?

Non-submission or late submission can result in fines or prosecution under the Income Tax Act 1967, in addition to penalties on outstanding PCB.

Do small businesses need to pay the HRD Levy?

Only employers with 10 or more employees in covered sectors are required to register and contribute. However, employers with 5-9 employees may register voluntarily.

How can employers ensure compliance with all deadlines?

By setting up reminders, maintaining proper records, and using integrated payroll software to handle contributions and submissions automatically.

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