Dear friends,
Please be informed that from 1 October 2024, the contribution rates for SOCSO and EIS will have to be updated accordingly.
Through the passing of the Employees' Social Security (Amendment) Bill 2024 and the Employment Insurance System (Amendment) Bill 2024, employers are advised to take note of the following:
The maximum ceiling to determine contribution rates has been raised from RM5000 to RM6000 for both SOCSO and EIS;
Please take note of the rate of payment based on the new Schedules (enclosed here for you to download)
This change needs to be reflected in the administration of October's payroll (likely late October or early November, depending on your payroll period)
*As a reminder - EIS and SOCSO are 2 different schemes, EIS is a financial scheme aimed to assist employees who lost their jobs through no fault of their own, i.e. retrenchment, whereas SOCSO is a social security and it aims to offer enhanced protection to employees in Malaysia.
The effect of this amendment is pretty straightforward - there will be an immediate increase in cost for all employers from this month onwards, more so for companies with a larger workforce. We would also recommend updating your internal payroll system or notifying your payroll vendors in ensuring that changes are reflected accordingly.
If you're working on a budget for the New Year, please factor in this current increase and a potential minimum wage increase. A new minimum wage order is projected to be tabled in Parliament in mid-October 2024. (read our recent post here)
Relevant documents, including the Schedule of Payment and Ministerial Order can be downloaded here
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