Required certification ยท Malaysia

SOCSO / PERKESO

Mandatory employer registration for injury, invalidity & EIS protection

Tier A ยท Workable

Market position

The statutory body under the Employees' Social Security Act 1969 and the EIS Act 2017 โ€” employers register and contribute via the ASSIST portal. Especially load-bearing in construction given on-site injury risk.

Malaysia-specific note

An employer must register within 30 days of hiring (Form 1 / ASSIST) and contribute monthly for Employment Injury & Invalidity plus EIS by the 15th โ€” and because the mandatory CIDB Green Card bundles only a basic personal-accident Takaful, SOCSO is the real injury backbone on site.

Pros

  • + Employment-injury, invalidity and EIS coverage (critical for construction risk)
  • + A single ASSIST portal for combined SOCSO + EIS
  • + Demonstrates statutory compliance for tenders/audits
  • + Covers foreign workers (Employment Injury since 2019, Invalidity since 2024)

Cons

  • โˆ’ 30-day registration after the first hire
  • โˆ’ Monthly contribution due by the 15th
  • โˆ’ Non-compliance risks fines up to RM10,000 and/or 2 years' imprisonment
  • โˆ’ Statutory scope/rates โ€” you cannot opt out

Typical Malaysia pricing

No registration fee; statutory rates apply.

Why this matters for Malaysia trades

CIDB (the Construction Industry Development Board) registers and grades contractors G1โ€“G7 by project value and issues the mandatory Green Card for site workers under Act 520 โ€” registration is required to undertake or bid construction work; LHDN/IRBM runs income tax, SST and the MyInvois e-invoicing system (XML/JSON with a validated UIN and QR code); SSM (the Companies Commission of Malaysia) handles company incorporation; the Board of Engineers Malaysia (BEM) registers engineers; and employers must register every worker with EPF/KWSP (provident fund), SOCSO/PERKESO (social security) and EIS.

Malaysian construction & trades software selection is shaped above all by MyInvois โ€” the national e-invoicing system run by LHDN/IRBM (the Inland Revenue Board), phasing in by turnover (largest firms since August 2024, mid-market through 2025, businesses above RM1m from January 2026, and the smallest firms following). Construction is treated as a special case: many progress claims and certain transactions must be e-invoiced individually rather than batched into a monthly consolidated e-invoice โ€” so "MyInvois-ready / LHDN-compliant" is the lead selling point for local accounting and construction-ERP vendors. Add the Ringgit (MYR), SST (Sales & Service Tax, not VAT), CIDB G1โ€“G7 contractor grading across ~130,000 registered contractors, and a government digitalisation grant nudging SMEs onto the software. Business runs in English.

Frequently asked

Is SOCSO / PERKESO a good fit for Malaysia trades?

The statutory body under the Employees' Social Security Act 1969 and the EIS Act 2017 โ€” employers register and contribute via the ASSIST portal. Especially load-bearing in construction given on-site injury risk. An employer must register within 30 days of hiring (Form 1 / ASSIST) and contribute monthly for Employment Injury & Invalidity plus EIS by the 15th โ€” and because the mandatory CIDB Green Card bundles only a basic personal-accident Takaful, SOCSO is the real injury backbone on site.

What does SOCSO / PERKESO cost in Malaysia?

No registration fee; statutory rates apply.. Pricing and availability can change by region โ€” confirm current Malaysia pricing on the vendor's site before committing.

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