Socso Salary Ceiling Raised To RM6,000

The Social Security Organisation, Socso (Perkeso) has just announced that it will now be enforcing a new salary ceiling for contribution purposes. It has been raised from RM5,000 to RM6,000 and takes effect immediately.

The organisation said that this enforcement follows amendments to the Workers’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).

Maximum Socso contribution salary ceiling is now RM6,000

This move to increase the salary ceiling will offer better benefits to employees earning more than RM5,000.

Starting from Oct 1, the contribution amounts for employees earning more than RM5,000 and RM6,000 per month will apply as stated in the Third Schedule of Act 4 and the Second Schedule of Act 800, said Perkeso in a recently released statement.

According to said statement, around 1.5 million workers, which is equivalent to about 15.5 percent of all Perkeso contributors throughout the nation, will be affected by the salary ceiling change. This includes both local and foreign workers.

For workers whose salaries are above RM5,000, this means an increase of RM0.50 in monthly deduction with another RM1.80 increase in contribution from the employer’s portion.

Increased benefits under Employment Insurance Scheme (EIS)

The statement also announced a list of other benefits that will see higher benefits payout under their insurance schemes. This include Temporary Disablement Benefit (FHUS), Permanent Disablement Benefit (FHUK), Dependants’ Benefit (FOT), Invalidity Pension and Survivors’ Pension under Act 4, as well as the Employment Search Allowance (EMP), Reduced Income Allowance (EPB), and Early Re-employment Allowance (EBSA) under Act 800.

Employers will also have to adhere to the new salary ceiling limit with regards to contribution payments starting from 1 October 2024.

“Employers are required to record the contribution deduction amounts in their employees’ payroll statements or slips for record-keeping purposes and for inspection activities by Perkeso,” the organisation said.

Read More: Things You May Not Know About Your SOCSO Benefits