Required certification · Malaysia
SOCSO / PERKESO
Mandatory social security (SOCSO) and Employment Insurance (EIS) registration for employers
Market position
PERKESO (the Social Security Organisation, SOCSO) runs the Employment Injury and Invalidity schemes under the Employees' Social Security Act 1969 and the Employment Insurance System (EIS) under the Employment Insurance System Act 2017. Every employer with one or more employees must register and pay contributions, which it does online through the ASSIST portal. News reports say foreign workers were brought under SOCSO from January 2019 and under the Invalidity Scheme in 2024.
Malaysia-specific note
Employers register themselves and their workers (Borang 1 and 2, with a separate form for foreign workers) through ASSIST, pay contributions by the 15th of the following month and must report work accidents within 48 hours. Since 1 October 2024 contributions are calculated on wages up to RM6,000 a month. The newer LINDUNG 24 Jam scheme for accidents outside working hours is paid by employees, optional for Malaysians and mandatory for foreign workers, PERKESO says. The CIDB Green Card's takaful benefits are separate from SOCSO cover.
Pros
- + Employment injury, invalidity and job-loss (EIS) cover for employees
- + Registration and payment online through ASSIST, with payment also by the PRIHATIN app
- + Foreign workers are covered under the Employment Injury and Invalidity schemes, news reports say
- + Several payment channels, including FPX, direct debit and bank counters
Cons
- − Contributions due by the 15th of each month; late payment carries 6% a year interest
- − Work accidents must be reported within 48 hours
- − Non-payment can bring up to two years' imprisonment or a RM10,000 fine (2006 text of the Act)
- − Statutory scheme: covered employers cannot opt out
Typical Malaysia pricing
No registration fee is stated on PERKESO's registration page. Contributions follow the statutory rate tables under Act 4 and Act 800, on wages up to RM6,000 a month since 1 October 2024; LINDUNG 24 Jam adds an employee-paid 0.75% of wages in its first two years.
Why this matters for Malaysia trades
Under Act 520, every local and foreign contractor must register with CIDB (the Construction Industry Development Board), which grades contractors G1 to G7 with works limits from RM200,000 (G1) to no limit (G7), issues the SPKK certificate for government works and registers construction workers, site supervisors and project managers through the Green Card; working unregistered risks a fine of RM10,000 to RM100,000. LHDN/IRBM runs income tax, employers’ monthly PCB/MTD deductions and the MyInvois e-invoicing system. SSM (the Companies Commission of Malaysia) registers businesses, companies and LLPs; under Act 138 only a Professional Engineer or engineering consultancy practice registered with the Board of Engineers Malaysia (BEM) may submit engineering plans to an authority; and employers must register with and pay monthly contributions to EPF/KWSP and to SOCSO/PERKESO (including EIS), with HRD Corp registration and levy required at 10 or more employees in covered industries.
Malaysian construction and trades software selection is shaped by MyInvois, the national e-invoicing system run by LHDN/IRBM (the Inland Revenue Board), rolled out in phases by turnover from August 2024. Businesses with turnover up to RM5 million entered on 1 January 2026, but under LHDN’s e-Invoice Guideline of 30 August 2026 those below RM3 million are exempt unless a shareholder company, holding company, related company or joint venture has turnover of RM3 million or more, and an interim relaxation for the up-to-RM5 million phase runs to 31 December 2027, allowing consolidated e-invoices for taxpayers who meet its conditions. AutoCount, SQL Account, Bukku and other local accounting and ERP vendors listed here say they submit e-invoices to MyInvois. Add the Ringgit (MYR), SST, CIDB contractor grading from G1 to G7, and monthly EPF, SOCSO, EIS and PCB payroll deductions, with LHDN publishing a list of payroll software whose PCB calculation meets its specification.
Frequently asked
Is SOCSO / PERKESO a good fit for Malaysia trades?
PERKESO (the Social Security Organisation, SOCSO) runs the Employment Injury and Invalidity schemes under the Employees' Social Security Act 1969 and the Employment Insurance System (EIS) under the Employment Insurance System Act 2017. Every employer with one or more employees must register and pay contributions, which it does online through the ASSIST portal. News reports say foreign workers were brought under SOCSO from January 2019 and under the Invalidity Scheme in 2024. Employers register themselves and their workers (Borang 1 and 2, with a separate form for foreign workers) through ASSIST, pay contributions by the 15th of the following month and must report work accidents within 48 hours. Since 1 October 2024 contributions are calculated on wages up to RM6,000 a month. The newer LINDUNG 24 Jam scheme for accidents outside working hours is paid by employees, optional for Malaysians and mandatory for foreign workers, PERKESO says. The CIDB Green Card's takaful benefits are separate from SOCSO cover.
What does SOCSO / PERKESO cost in Malaysia?
No registration fee is stated on PERKESO's registration page. Contributions follow the statutory rate tables under Act 4 and Act 800, on wages up to RM6,000 a month since 1 October 2024; LINDUNG 24 Jam adds an employee-paid 0.75% of wages in its first two years. Pricing and availability can change by region; confirm current Malaysia pricing on the vendor's site before committing.