SOCSO and EIS rate changes (Effective from 1 September 2022)

The Malaysia statutory board Social Security Organization (SOCSO) has announced that they will enforce a new monthly salary ceiling for contributors from 1st Sept 2022 onwards with the purpose to increase the social security coverage for contributors.

With this change, salary ceiling for contributions from RM4,000 will be increase to RM5,000 per month for both SOCSO and EIS contributions. It will only impact contributor with salary RM4,000 and above. The new contribution rate has been published on SOCSO website on 1 Sept, click here to view the details.

We have notified SOCSO that payroll software will needs time to update and release. User might also take times to upgrade their system. Prior to the product update, in order to process the pay run with new rate, user is recommended to manually edit the payroll archive after process the pay run, see below.

Step 1: Go to Main menu and select Edit Payroll Archive.

Note: To view Edit Payroll Archive function from Main menu, you need to set the password for Administrator.

Step 2: Select the Month that you want to update, for example ‘September’.

Step 3: Select the Staff No from the look up list to adjust the contribution amounts.

Step 4: Update the SOCSO and EIS for Employer’s Contribution amounts on the left side.

Step 5: Update the SOCSO and EIS for Employee’s Contribution amounts on the right side.

Step 6: Ensure the Net Income is calculated correctly, click Next to adjust for the next employee or click Close when you finish updates for all employees.

For employee with fortnightly pay period, it is recommended to adjust the difference on 2^ndHalf pay run.

User can click Next to find the 2^ndHalf pay run and make the necessary adjustment.

Also please note that SOCSO has also mentioned that they allow 6 months flexibility for employer to make the necessary update for the contribution.

Click here for Frequently Asked Questions.