Kenapa SOCSO Ditolak dalam Gaji? | Why is SOCSO Deducted from Salary?

As an employer in Malaysia, it's normal to see SOCSO deductions appear in your employees’ monthly payslips.

However, questions often arise about why SOCSO is deducted.

Is it legal? How is it calculated? And what if employees don’t see the deduction on their payslips?

In this guide, we’ll go through each of these concerns to help employers manage SOCSO deductions correctly and transparently.

Is It Legal to Deduct SOCSO from Employee Salaries?

Yes, it is legal. In fact, it’s mandatory under the Employees’ Social Security Act 1969.

All employers in the private sector must register their employees with SOCSO and contribute on their behalf.

These contributions come from both the employer and the employee, so part of the employee’s monthly salary will be deducted and added to the employer’s share.

They are meant to protect employees from unexpected risks like workplace injuries, disabilities, or death caused by work-related incidents.

Why is SOCSO Rejected on The Employee's Salary?

Sometimes, SOCSO deductions might not show up on payslips, or employees might ask why they’re not being made. There are a few possible reasons:

Non-Malaysian workers may not qualify under the same protection schemes, so no deduction is made.
During the probation period, some employers might delay the registration and contribution depending on company policies or how quickly the probation confirmation is processed.
Temporary or daily-rated workers may not be covered, especially if their employment is irregular or seasonal.
Freelancers or self-employed individuals generally don’t receive SOCSO deductions unless they opt in through the Self-Employment Social Security Scheme.
Some employers may withhold SOCSO deductions but fail to remit payments to SOCSO, leading to non-compliance.
In some cases, employers simply fail to register the employee with SOCSO.

Each of these situations can lead to confusion. That’s why employers need to be transparent with their employees and keep accurate payroll records.

What Percentage Is SOCSO Deduction in the Payslip?

The contribution rate depends on the employee’s salary and which scheme they are under:

For employees earning RM4,000 and below (Skim Bencana Pekerjaan dan Skim Keilatan):
- Employer contributes 1.75%
- Employee contributes 0.5%

For example, if an employee earns RM3,000:

Employer pays RM52.50
Employee pays RM15.00

For employees above RM4,000 who choose not to participate in Skim Keilatan:
- Employer pays 1.25% under the Employment Injury Scheme only
- No deduction is made from the employee’s salary

As of 1 October 2024, the contribution salary ceiling has increased to RM6,000.

This means employees earning between RM5,000 to RM6,000 will now contribute based on the new ceiling.

HR teams need to refer to the latest contribution tables on SOCSO’s website for accurate calculations.

Is SOCSO Mandatory?

Yes. All private-sector employees, including contract and part-time workers, must be registered and covered under SOCSO.

Employers are responsible for handling registration and payments. If an employer fails to do so, it could lead to penalties and other legal consequences.

SOCSO Protection Benefits for Employees

SOCSO contributions provide employees with safety nets that assist them during difficult times.

What benefits do employees receive?

Medical Benefits: Treatment costs for workplace accidents or job-related illnesses are covered.
Temporary Disability Benefits: If the employee is unable to work for a period due to an accident or illness, SOCSO provides temporary cash payments.
Permanent Disability Benefits: If the employee suffers permanent disability, they’ll receive regular financial support.
Dependent’s Benefit: If an employee passes away due to a workplace incident, their next-of-kin can receive monthly payments.
Funeral Management Benefit: SOCSO helps cover funeral costs for employees who pass away due to a workplace-related incident.
Education Benefits: Children of contributors may receive financial aid to continue their education.

How to Check Your SOCSO Contributions?

Employers should guide their employees to check their SOCSO contributions to avoid confusion or mistrust.

Contributions can be verified using:

ASSIST Portal
PERKESO Mobile App
Nearest PERKESO Office

If a worker finds their SOCSO contributions missing or incorrect, they should report it directly to PERKESO.

From the employer’s end, it’s best to correct the records and make any outstanding payments promptly.

Differences Between SOCSO/KWSP and EPF

Feature	SOCSO	KWSP (EPF)
Purpose	Social security insurance for work-related risks	Long-term retirement savings
Who Contributes	Employer and Employee	Employer and Employee
Contribution Rate	Depends on salary and scheme (e.g, 1.75% employer, 0.5% employee)	Typically 12-13% employer, 11% employee (can vary)
Type of Coverage	Medical care, disability, death, dependents' benefits	Retirement, housing, education, health (withdrawal-based)
When You Use It	During or after a work-related incident or illness	After retirement or under special withdrawal conditions
Mandatory?	Yes, under the Employees’ Social Security Act	Yes, under the EPF Act

Can Employees Claim Compensation from SOCSO?

Yes. Employees can file claims if they experience:

A workplace accident or injury while commuting to work
A job-related disease, such as those caused by exposure to hazardous materials
A permanent disability or death resulting from work conditions

To make a claim, employees need to fill out the SOCSO claim form, attach medical records, and submit them to the nearest PERKESO office.

Delays in submitting claims can complicate the process, so timely action is key. As the employer, it’s helpful to assist employees with claim submission when needed.

FAQ

Is SOCSO deducted from every employee’s salary?

Yes, for all eligible private-sector workers, including part-timers and contract staff.

What is the SOCSO contribution for part-time workers?

It’s based on their monthly earnings. SOCSO is still mandatory.

Can employers be penalised for not contributing to SOCSO?

Yes. Legal action may be taken, including fines.

How long do SOCSO benefits last?

Some, like dependent or disability benefits, may continue for life, depending on the case.

What happens if the SOCSO contribution is wrongly deducted?

Employers should correct the mistake immediately and remit the correct amount.

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