EPF, SOCSO and EIS deductions from your salary in Malaysia, 2026
Three deductions come out of a Malaysian salary before tax: the employee's share of EPF (the Employees Provident Fund, KWSP), SOCSO (PERKESO's social security) and EIS (the employment insurance system). This guide works through each with the EPF Third Schedule that applies from October 2025 salary and the PERKESO tables, using the figures for 2026.
EPF
A Malaysian citizen or permanent resident under 60 pays 11% of wages. The employer pays 13% on wages up to RM5,000 and 12% above it. A non-citizen registered from 1 August 1998 pays 2% and so does the employer, from October 2025 salary.
The amount is not the exact percentage. Up to RM20,000 the Third Schedule works on wage bands: RM20 wide up to RM5,000, then RM100 wide up to RM20,000. The contribution is the percentage of the top of the band, rounded up to the next ringgit. Above RM20,000 it is the percentage of the actual wage, again rounded up to the next ringgit. A wage of RM4,000.01 falls in the band that ends at RM4,020, so the employee pays RM443.00, while RM4,000.00 pays RM440.00.
Five monthly salaries
| Monthly salary | EPF (11%) | SOCSO with SKBBK | EIS | Total taken from pay | Share of salary |
|---|---|---|---|---|---|
| RM3,000 | RM330.00 | RM36.90 | RM5.90 | RM372.80 | 12.43% |
| RM5,000 | RM550.00 | RM61.90 | RM9.90 | RM621.80 | 12.44% |
| RM6,000 | RM660.00 | RM74.40 | RM11.90 | RM746.30 | 12.44% |
| RM8,000 | RM880.00 | RM74.40 | RM11.90 | RM966.30 | 12.08% |
| RM15,000 | RM1,650.00 | RM74.40 | RM11.90 | RM1,736.30 | 11.58% |
At RM3,000 a month the three deductions are RM372.80, 12.43% of pay. At RM15,000 they are RM1,736.30, 11.58%: EPF keeps rising with pay, but SOCSO and EIS stopped rising at RM6,000.
The employer's side is paid on top of the salary and does not lower the money you receive.
| Monthly salary | EPF employer | SOCSO employer | EIS employer | Employer total on top |
|---|---|---|---|---|
| RM3,000 | RM390.00 | RM51.65 | RM5.90 | RM447.55 |
| RM5,000 | RM650.00 | RM86.65 | RM9.90 | RM746.55 |
| RM6,000 | RM720.00 | RM104.15 | RM11.90 | RM836.05 |
| RM8,000 | RM960.00 | RM104.15 | RM11.90 | RM1,076.05 |
| RM15,000 | RM1,800.00 | RM104.15 | RM11.90 | RM1,916.05 |
SOCSO and EIS: the RM6,000 ceiling
Since 1 October 2024 PERKESO counts wages up to RM6,000 a month for both SOCSO and EIS. Each is a table, with one row for every RM100 of wages above RM500, not a flat percentage. For wages from RM5,900.01 to RM6,000 the employee pays RM29.75 for SOCSO invalidity, RM44.65 for the SKBBK share and RM11.90 for EIS. Wages above RM6,000 pay the same: a monthly salary of RM9,000 has SOCSO of RM74.40 and EIS of RM11.90, the same as RM6,000 (RM74.40 and RM11.90).
Because the rows are RM100 bands, a one-ringgit rise can move you to the next row: SOCSO is RM49.40 at RM4,000 and RM50.60 at RM4,001.
SKBBK, the newer part of SOCSO
The PERKESO Act 4 table now has a column for SKBBK (the non-work accident scheme, branded Lindung 24 Jam), paid by the employee only at 0.75% of the band midpoint, from 1 June 2026. At RM5,000 a month it is RM37.15 of the RM61.90 SOCSO. Reports say Malaysian employees were later given the choice to stay in or leave, with the default being to stay in. The calculators on this site include SKBBK by default and let you switch it off: without it SOCSO at RM5,000 is RM24.75. This point is listed on the Sources page as not confirmed on a PERKESO page we could open.
Foreign workers
A foreign worker pays EPF at 2%, is not covered by EIS (the PERKESO FAQ says foreign workers are outside the Employment Insurance System Act), and for SOCSO the employee side is taken here as the SKBBK share only, with the employer paying the employment injury part.
| Monthly salary | Citizen: EPF | Foreign worker: EPF | Citizen: SOCSO and EIS | Foreign worker: SOCSO and EIS |
|---|---|---|---|---|
| RM3,000 | RM330.00 | RM60.00 | RM42.80 | RM22.15 |
| RM5,000 | RM550.00 | RM100.00 | RM71.80 | RM37.15 |
| RM6,000 | RM660.00 | RM120.00 | RM86.30 | RM44.65 |
| RM8,000 | RM880.00 | RM160.00 | RM86.30 | RM44.65 |
| RM15,000 | RM1,650.00 | RM300.00 | RM86.30 | RM44.65 |
EPF and your tax
EPF contributions lower your taxable income, but only up to RM4,000 a year. At RM4,000 a month the yearly EPF is RM5,280, so RM4,000 counts. At RM3,000 a month it is RM3,960, which is under the limit, so all of it counts. SOCSO and EIS have their own relief of RM350 a year in the yearly assessment. How these reliefs enter the monthly tax deduction is in the PCB guide.
Work out your own deductionsSources
- EPF (KWSP): mandatory contribution rates, effective October 2025 salary
- EPF (KWSP): Third Schedule from 1 October 2025 (wage bands, rounding)
- PERKESO: contribution rates (wage ceiling RM6,000 from 1 October 2024)
- PERKESO: Act 4 contribution table including SKBBK
- LHDN: tax reliefs (EPF relief up to RM4,000)
- Every rate used, with its source and check date: Sources and rates
This calculator is general information only. It uses the LHDN, EPF and PERKESO pages listed on the Sources page, and your payslip, tax bill and personal situation may differ. Rates as at 2 November 2026.