5. How to calculate SOCSO contributions?

5. How to calculate SOCSO contributions?

Note: The information below shall only be used for reference purposes. iWoWSoft has been trying its best to keep the information up to date and align with the PERKESO website(www.perkeso.gov.my). However, iWoWSoft is not liable for any misleading and inaccurate information provided. Users shall always confirm with PERKESO to ensure they are in compliance with statutory requirements. 

Definition Of Wages (Defined by PERKESO)
All remuneration 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
 
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
 
Kindly refer to SOCSO Contribution Table to view on the contributions.
 
Examples of SOCSO Contribution Scenario:
 
Scenario A
 
Salary = RM 1,800
Allowances = RM 150
Annual Bonus = RM 3,600
Total = RM 5,550
Total for SOSCO Contribution = RM 1,950 (Annual Bonus is excluded as it is not considered as SOCSO Wages)
 
Amount payable by Employer = RM 34.15
Amount payable by Employee = RM 9.75
Total payable amount for SOCSO Contributions = RM 43.90
 
Scenario B
 
Salary = RM 2,450
Allowances = RM 150
Total = RM 2,600
Total for SOSCO Contribution = RM 2,600
 
Amount payable by Employer = RM 44.65
Amount payable by Employee = RM 12.75
Total payable amount for SOCSO Contributions = RM 55.10
 
Note: The information below shall only be used for reference purpose. iWoWSoft has been trying its best to keep the information up to date and align with PERKESO website(www.perkeso.gov.my). However, iWoWSoft is not liable for any misleading and inaccurate information provided. Users shall always confirm with PERKESO to ensure they are compliance to statutory requirement

Below is the explanation on the different SOCSO Groups in iWoWHRMS.

Kindly refer below for the details:

SOCSO Groups List:

1. Socso Group 1 -  This Socso contribution only caters staff that are below age 60 

2. Socso Group 2 (Age => 60 & Foreign Worker) - This Socso contribution only caters Malaysian that are above 60 and foreign workers

3. Socso Group 1 (Paid By Employer) - Similar to Socso Group 1, however this Socso contribution will only be paid by the Employer.

4. Default (Malaysian) - This Socso contribution will determined by the system based on the employees' age on whether they the contribution rate will based on Group 1 or Group 2.

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