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DEF Advisory

Employer Compliance

EPF, SOCSO & EIS Guide

A Practical Guide for Malaysian Employers

Employers in Malaysia may have registration, contribution, payroll and employee-related compliance responsibilities involving EPF, SOCSO and EIS.

Contribution rates, eligibility, employee categories, deadlines and other statutory requirements can change. Current official information must be verified before production publication.

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Section 01

EPF — Employees Provident Fund

Helping Employees Build Retirement Savings

The Employees Provident Fund (EPF / KWSP) is a mandatory savings scheme for eligible employees.

The approved design states that employers generally have responsibilities to:

  • Register as an EPF employer
  • Register eligible employees
  • Calculate the applicable contributions
  • Deduct the employee's share where applicable
  • Contribute the employer's share
  • Submit contributions within the required timeframe
  • Maintain appropriate payroll and contribution records
Section 02

EPF Monthly Contributions

Employers are responsible for remitting the applicable employee and employer contributions to EPF.

The approved design states that contributions for a particular month's wages should generally be paid on or before the 15th day of the following month.

Example shown in the design: January salary → EPF contribution generally due by 15 February.

  • Ensure employee information is accurate
  • Maintain payroll records
  • Provide salary statements or payslips
  • Check that contributions are correctly calculated
  • Keep contribution records
  • Update EPF when relevant employer information changes
Section 03

EPF for Non-Malaysian Employees

The approved design highlights that mandatory EPF contributions for eligible non-Malaysian citizen employees started from October 2025 wages, subject to applicable requirements and exemptions.

It states a contribution rate of 2% from the employer and 2% from the employee for the applicable category, generally payable by the 15th of the following month.

Section 04

SOCSO — Social Security Protection

Protecting Employees Against Employment-Related Risks

SOCSO, administered by PERKESO, provides social security protection to eligible employees.

Depending on the applicable scheme, protection can include areas such as:

  • Employment injury
  • Invalidity
  • Related social security benefits
  • Protection for eligible foreign workers under applicable arrangements
Section 05

SOCSO Employer Responsibilities

Employers generally need to:

Employee Records

The approved design states that employers should maintain monthly employee records containing information such as:

  • Employee name
  • Identification number
  • Occupation
  • Contribution details
  • Monthly wages
  • Allowances
  • Register as an employer with PERKESO
  • Register eligible employees
  • Calculate applicable contributions
  • Make monthly contribution payments
  • Maintain employee and contribution records
  • Report relevant workplace accidents
  • Keep information updated
Section 06

SOCSO Contribution Payments

The approved design states that contributions payable for a month must generally be paid no later than the 15th day of the following month.

Example: January contribution → generally due by 15 February.

Late payment may result in interest being imposed according to applicable requirements.

Section 07

EIS — Employment Insurance System

Supporting Employees Who Lose Their Employment

The Employment Insurance System (EIS), administered by PERKESO, provides support to eligible insured persons who experience loss of employment.

The system is intended to provide employment-related support, including assistance in returning to employment.

The approved design states that employers in the private sector generally have responsibilities to register eligible employees and make the required monthly contributions.

Section 08

EIS Employer Responsibilities

Employers generally:

  • Register with EIS where applicable
  • Register eligible employees
  • Calculate applicable contributions
  • Deduct the employee's share where applicable
  • Pay the required employer and employee contributions
  • Maintain employee and payroll records
  • Update employee information when required
Section 09

EPF vs SOCSO vs EIS — What Is the Difference?

All three are important statutory schemes that employers need to understand and comply with.

Overview of the three statutory schemes
SchemeMain PurposeAdministered By
EPFRetirement savings for employeesEmployees Provident Fund (EPF / KWSP)
SOCSOSocial security protection against employment-related risksPERKESO (Social Security Organisation)
EISEmployment support for those who lose their jobsPERKESO (Employment Insurance System)
Section 10

Frequently Asked Questions

What is the difference between EPF, SOCSO and EIS?

EPF supports retirement savings, SOCSO provides social security protection against employment-related risks, and EIS supports eligible insured persons who lose employment.

When should an employer register employees?

Registration timing and eligibility depend on the scheme. The approved guide includes time-sensitive requirements that must be verified with EPF and PERKESO before publication.

When are monthly contributions due?

The approved design generally refers to the 15th day of the following month for the described EPF and SOCSO contributions. Verify current scheme-specific deadlines before relying on them.

Do these schemes apply to non-Malaysian employees?

Different requirements and arrangements may apply. Verify current eligibility, rates and exemptions with the relevant authority.

What records should employers keep?

Employers should maintain accurate employee, payroll and contribution records and verify each scheme’s current record-keeping requirements.