Understanding SOCSO Contribution Table: A Comprehensive Breakdown

Introduction

The SOCSO contribution table outlines the mandated contributions that employers and employees in Malaysia must make to the Social Security Organisation (SOCSO). This contribution ensures that employees have access to various social security benefits, including medical, employment injury, invalidity, and survivor benefits. Understanding the SOCSO contribution table is crucial for employers and employees alike, as it determines the amount of contributions required and the benefits that employees are entitled to.

Contribution Rates

The SOCSO contribution rates are determined by the employee's income and the type of employment. Employees are classified into three categories: self-employed, non-self-employed, and foreign workers. Self-employed individuals contribute 16.75% of their monthly income, while non-self-employed employees contribute 7.50% of their monthly income. Foreign workers contribute 1.25% of their monthly income.

Employers are responsible for matching the employee's contributions, except for foreign workers. For example, if an employee contributes RM100 per month, the employer must also contribute RM100 per month.

Contribution Ceiling

The SOCSO contribution ceiling is the maximum monthly income that is subject to SOCSO contributions. The contribution ceiling is revised annually by the government and is currently set at RM4,000 per month. This means that employees whose monthly income exceeds RM4,000 only contribute SOCSO based on the first RM4,000 of their income.

Benefits of SOCSO Contributions

SOCSO contributions provide employees with access to various social security benefits, including:

• Medical benefits: Employees can receive medical treatment and hospitalization benefits for work-related injuries or illnesses.
• Employment injury benefits: Employees who suffer a work-related injury or illness may receive compensation for lost income and medical expenses.
• Invalidity benefits: Employees who become disabled due to a work-related injury or illness may receive a monthly pension.
• Survivor benefits: The dependents of employees who die due to a work-related injury or illness may receive a monthly pension or lump sum payment.

Conclusion

The SOCSO contribution table is an essential resource for employers and employees in Malaysia. By understanding the contribution rates, contribution ceiling, and benefits of SOCSO contributions, employers and employees can ensure that they are meeting their legal obligations and that employees are receiving the social security benefits they are entitled to.