What HR Needs to Do When an Employee Passes Away

Handling the death of an employee is never easy. It is a sensitive situation that affects the employee’s family, colleagues, and the organisation as a whole.

At the same time, employers in Malaysia still have legal, payroll, and administrative responsibilities that must be handled properly.

Many HR teams are unsure what to do next. Who should receive the unpaid salary, whether EPF and SOCSO must be informed, and what documents are required. This guide explains the steps clearly and calmly, so employers can act with care while staying compliant.

What Employers Must Do Immediately

The first steps should focus on confirmation, communication, and basic administration, handled respectfully.

Confirm the Death Formally

HR should request an official confirmation, such as a death certificate or notice from the family. This ensures records are accurate before any payroll or statutory action is taken.

Inform Internal Stakeholders

Relevant parties should be notified discreetly, including:

Company management
Payroll or finance team
IT and security teams (to prevent misuse of systems)

Secure Company Property Respectfully

Company items such as laptops, access cards, uniforms, or documents should be collected later through the family or estate representative, without urgency or pressure.

Final Salary & Leave Payment

Even after an employee passes away, employers are still required to settle outstanding payments.

What Must Be Paid

Salary up to the day of death
Unused annual leave (paid in cash)
Outstanding claims such as overtime, mileage, commissions, or allowances
Who receives the payment

The payment must be made to the legal next-of-kin or authorised estate representative, not directly to just any family member.

Documents HR May Request

Death certificate
Identification documents (IC)
Marriage or birth certificate to confirm the relationship
Letter of Administration or Grant of Probate (if required)

This helps protect both the employer and the family from future disputes.

EPF (KWSP): What Employers Need to Know

EPF savings are not paid by the employer to the family.

Employer Responsibilities

Submit the employee’s final EPF contribution
Inform the family that EPF claims are handled directly by KWSP

How the Family Claims EPF

Through Pengeluaran Kematian (Death Withdrawal)
Claims are faster if the employee has Penamaan KWSP (nominee)

Common Documents Needed

MyKad
Death certificate
Marriage or birth certificate
EPF (KWSP) number

Not sure about an employee’s EPF contribution? Check and estimate employee EPF easily with → EPF Calculator.

SOCSO: Funeral & Survivor Benefits

SOCSO provides financial support to eligible dependants.

Common Benefits

Funeral Benefit (Faedah Pengurusan Mayat)
Survivor Pension (Pencen Penakat)

Employer’s Role

Confirm that SOCSO contributions were up to date
Provide employment letters or sign the required forms
Assist if the family requests clarification

If Death Occurred at Work

The employer must report the incident to SOCSO immediately
Additional workplace safety reporting may apply

EIS (SIP)

EIS does not provide payouts for death. It only applies to job loss, such as retrenchment. This clarification helps avoid confusion for families during a difficult time.

Legal & Admin Updates for Employer

HR should complete several follow-up tasks to close records properly.

Issue the final EA Form for tax purposes
Remove the employee from payroll systems
Update HRDF, insurance, and medical plan records
If the death happened at the workplace:
- Prepare an incident report
- Follow Occupational Safety & Health reporting requirements
- Submit relevant reports to SOCSO

Best HR Support Practices

Beyond compliance, HR plays an important human role.

Send an official condolence message or letter to the family
Share details of any company insurance coverage (such as group life insurance)
Assign one HR contact person to assist the family with claims and documents
Be mindful of colleagues who may be affected and offer emotional support where appropriate

A calm, compassionate approach helps both the family and the organisation navigate the situation.

FAQs

What happens to unpaid salary?

It must be paid to the legal next-of-kin or estate representative.

Does EPF automatically go to the spouse?

Only if the spouse is named as a nominee. Otherwise, the claim follows legal procedures.

Do employers need to inform SOCSO?

Yes, especially if the employee was an active contributor or if the death happened during work.

How long does the family have to claim EPF or SOCSO?

There is no strict expiry, but earlier claims are encouraged to avoid delays.

Who decides which family member receives the final salary?

The employer follows legal documentation, not verbal instructions.

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