How this is calculated
Contributory wage = the lower of your monthly wage and RM6,000. SOCSO employee = contributory wage × 0.5%; SOCSO employer = contributory wage × 1.75%. EIS = contributory wage × 0.2% on each side.
Worked example on RM5,000, which is below the ceiling: SOCSO employee 5,000 × 0.005 = RM25.00; SOCSO employer 5,000 × 0.0175 = RM87.50; EIS RM10.00 each side. Your side of the payslip is RM35.00 a month.
Above the ceiling the figures stop moving. At RM6,000 and at RM20,000 the employee pays the same RM30.00 SOCSO and RM12.00 EIS, because both are computed on RM6,000 either way. PERKESO publishes an exact contribution table in wage bands rather than a formula; the percentages above reproduce it closely but not to the sen.
What SOCSO actually pays for
SOCSO runs two schemes. The Employment Injury Scheme covers accidents at work, accidents commuting to and from work, and occupational disease — it pays medical costs, temporary and permanent disablement benefits, and dependants' benefit on death. The Invalidity Scheme covers non-work-related invalidity or death before age 60, and pays a pension where the contribution conditions are met.
EIS is separate and newer. It pays a job search allowance to workers who lose employment involuntarily — retrenchment, employer closure, constructive dismissal — for a limited period, along with early re-employment and training allowances. It does not cover voluntary resignation, retirement, or dismissal for misconduct.
Category 1 and Category 2 — which applies to you
Category 1 covers employees under 60 and includes both the Employment Injury and Invalidity Schemes, which is why both employee and employer contribute. This calculator uses Category 1.
Category 2 applies to employees aged 60 and above, and to those who first registered after 55. It covers Employment Injury only, the employee pays nothing, and the employer contributes at a lower rate. If you are over 60, your employee SOCSO line should read zero — if it does not, ask your payroll department.
Why the RM6,000 ceiling matters
The ceiling caps the contribution and it also caps the benefit. SOCSO benefits are calculated from your assumed monthly wage, which is itself capped, so a worker earning RM15,000 who is permanently disabled receives benefits computed on RM6,000 — not on what they actually earned.
That is the practical argument for treating SOCSO as a floor rather than as cover. For higher earners the gap between the capped benefit and actual income is what private disability or income-protection insurance is for.
How to use the socso & eis calculator (malaysia)
- Enter your monthly wage. Enter gross monthly wages. Anything above RM6,000 is treated as RM6,000 — the contribution stops rising there.
- Read your side and your employer's. The employee rows are deducted from your pay. The employer rows are paid on top and never appear as a deduction on your payslip.
- Check against your payslip. Your payslip may show SOCSO and EIS as one combined line. Add the two employee rows here to compare against it.