What the employer pays
Three contributions go on top of every salary. None of them comes out of the employee’s pay.
- EPF: 13% on wages up to RM5,000 a month and 12% above, for employees under 60. Like the employee’s 11%, it’s taken from KWSP’s Third Schedule bands up to RM20,000 and rounded up to the ringgit. It goes into the employee’s own EPF account.
- SOCSO: the employer’s share of PERKESO’s employment injury and invalidity schemes, read from its table up to RM6,000 a month. On RM5,000 it’s RM86.65. LINDUNG 24 Jam costs the employer nothing.
- EIS: 0.2% up to RM6,000, the same as the employee pays: RM9.90 on RM5,000.
The cost at each salary
| Salary | EPF | SOCSO | EIS | Total cost | On top |
|---|---|---|---|---|---|
| RM1,700 | RM221 | RM28.85 | RM3.30 | RM1,953.15 | 14.89% |
| RM3,000 | RM390 | RM51.65 | RM5.90 | RM3,447.55 | 14.92% |
| RM5,000 | RM650 | RM86.65 | RM9.90 | RM5,746.55 | 14.93% |
| RM5,100 | RM612 | RM88.35 | RM10.10 | RM5,810.45 | 13.93% |
| RM6,000 | RM720 | RM104.15 | RM11.90 | RM6,836.05 | 13.93% |
| RM8,000 | RM960 | RM104.15 | RM11.90 | RM9,076.05 | 13.45% |
| RM12,000 | RM1,440 | RM104.15 | RM11.90 | RM13,556.05 | 12.97% |
| RM20,000 | RM2,400 | RM104.15 | RM11.90 | RM22,516.05 | 12.58% |
The share on top falls as pay rises. Above RM5,000 the EPF rate drops a point, so the employer pays RM38 less EPF on RM5,100 than on RM5,000; and SOCSO and EIS stop rising at RM6,000. From there on it’s 12% EPF and a fixed RM116.05 of SOCSO and EIS.
The salary pages in the net salary table, from the minimum wage to RM30,000, show the employer’s cost too.
Older and foreign workers
| EPF | SOCSO | EIS | Total cost | |
|---|---|---|---|---|
| Malaysian under 60 | RM390 | RM51.65 | RM5.90 | RM3,447.55 |
| Malaysian aged 60 or over | RM120 | RM36.90 | RM0 | RM3,156.90 |
| Foreign worker | RM60 | RM51.65 | RM0 | RM3,111.65 |
- From 60, a Malaysian employee pays no EPF and the employer pays 4%. SOCSO moves to the second category, employment injury only, which the employer pays, and there’s no EIS.
- Foreign workers have had EPF at 2% each since the October 2025 wages. Their SOCSO is the same table as a Malaysian’s, in the first category since July 2024, and the EIS Act leaves them out. The foreign worker calculator works out their pay.
What these figures leave out
These are the contributions the law sets on a monthly salary. EPF is also due on a bonus, since KWSP counts it as wages, but not on overtime; SOCSO and EIS are due on overtime. Costs that depend on the employer, such as training levies, insurance, leave and benefits, aren’t included. EPF contributions are due by the 15th of the following month.