Cara Kira Potongan KWSP dan SOCSO | How to Calculate EPF and SOCSO Deductions in Malaysia

If you're running a business or handling HR in Malaysia, understanding how to calculate KWSP and SOCSO deductions is a responsibility.

Whether you're managing a small team or a growing company, accurate contributions protect your employees' future and help you stay compliant with national regulations.

In this article, we’ll guide you through each step of the process.

What is KWSP (EPF)?

KWSP stands for Kumpulan Wang Simpanan Pekerja, or the Employees Provident Fund.

It is a retirement savings fund meant to help employees build financial security after they stop working.

Every month, both employers and employees contribute a percentage of the employee’s salary into the KWSP account.

The contribution rate depends on the worker’s salary and age. For employees under 60 years old, the standard breakdown is:

Employee: 11% of monthly wages
Employer: 12% or 13%, depending on salary (13% for salaries RM5,000 and below, 12% for more than RM5,000)

For employees aged 60 and above, the rates are lower to reduce the financial burden:

Employee: 0%
Employer: 4%

Employee’s Status	Monthly Salary Rate	Stage 1 (Below 60 years old)	Stage 2 (Age 60 and above)
Malaysian	No limit		Employees share: 0% Employer’s share: 4% (Ref Third Schedule – Section E)
Malaysian Permanent Residents (PR) Non-Malaysians (registered as member before 1 August 1998)	RM5,000 and below	Employees share: 11% Employer’s share: 13% (Ref Third Schedule – Section A)	Applicable for (ii) and (iii) only Employees share: 5.5% Employer’s share: 6.5% (Ref Third Schedule – Section C)
Malaysian Permanent Residents (PR) Non-Malaysians (registered as member before 1 August 1998)	More than RM5,000	Employees share: 11% Employer’s share: 12% (Ref Third Schedule – Section A)	Applicable for (ii) and (iii) only Employees share: 5.5% Employer’s share: 6% (Ref Third Schedule – Section C)
Non-Malaysians (registered as member from 1 August 1998)	No limit	Employees share: 11% Employer’s share: RM5.00 (Ref Third Schedule – Section B)	Employees share: 5.5% Employer’s share: RM5.00 (Ref Third Schedule – Section D)

Source: https://www.kwsp.gov.my/en/employer/responsibilities/mandatory-contribution

What is SOCSO (PERKESO)?

SOCSO, also known as PERKESO, is Malaysia’s social security scheme. It covers workers through two types of protection:

Employment Injury Scheme covers work-related accidents or illnesses.
Invalidity Scheme covers long-term disability or death unrelated to work.

Both employers and employees contribute, and the rates vary depending on the employee's salary and age.

Typically, younger employees (below 60) are under the First Category, which covers both schemes.

Workers above 60 are usually under the Second Category, which covers only employment injury.

No.	Amount of Wages	First Category (Employment Injury Scheme and Invalidity Scheme)			Second Category (Employment Injury Scheme)
No.	Amount of Wages	Employer	Employee	Total Contribution	Contribution by Employer Only
1	Wages up to RM30	40 sen	10 sen	50 sen	30 sen
2	When wages exceed RM30 but not RM50	70 sen	20 sen	90 sen	50 sen
3	When wages exceed RM50 but not RM70	RM1.10	30 sen	RM1.40	80 sen
4	When wages exceed RM70 but not RM100	RM1.50	40 sen	RM1.90	RM1.10
5	When wages exceed RM100 but not RM140	RM2.10	60 sen	RM2.70	RM1.50
6	When wages exceed RM140 but not RM200	RM2.95	85 sen	RM3.80	RM2.10
7	When wages exceed RM200 but not RM300	RM4.35	RM1.25	RM5.60	RM3.10
8	When wages exceed RM300 but not RM400	RM6.15	RM1.75	RM7.90	RM4.40
9	When wages exceed RM400 but not RM500	RM7.85	RM2.25	RM10.10	RM5.60
10	When wages exceed RM500 but not RM600	RM9.65	RM2.75	RM12.40	RM6.90
11	When wages exceed RM600 but not RM700	RM11.35	RM3.25	RM14.60	RM8.10
12	When wages exceed RM700 but not RM800	RM13.15	RM3.75	RM16.90	RM9.40
13	When wages exceed RM800 but not RM900	RM14.85	RM4.25	RM19.10	RM10.60
14	When wages exceed RM900 but not RM1,000	RM16.65	RM4.75	RM21.40	RM11.90
15	When wages exceed RM1,000 but not RM1,100	RM18.35	RM5.25	RM23.60	RM13.10
16	When wages exceed RM1,100 but not RM1,200	RM20.15	RM5.75	RM25.90	RM14.40
17	When wages exceed RM1,200 but not RM1,300	RM21.85	RM6.25	RM28.10	RM15.60
18	When wages exceed RM1,300 but not RM1,400	RM23.65	RM6.75	RM30.40	RM16.90
19	When wages exceed RM1,400 but not RM1,500	RM25.35	RM7.25	RM32.60	RM18.10
20	When wages exceed RM1,500 but not RM1,600	RM27.15	RM7.75	RM34.90	RM19.40
21	When wages exceed RM1,600 but not RM1,700	RM28.85	RM8.25	RM37.10	RM20.60
22	When wages exceed RM1,700 but not RM1,800	RM30.65	RM8.75	RM39.40	RM21.90
23	When wages exceed RM1,800 but not RM1,900	RM32.35	RM9.25	RM41.60	RM23.10
24	When wages exceed RM1,900 but not RM2,000	RM34.15	RM9.75	RM43.90	RM24.40
25	When wages exceed RM2,000 but not RM2,100	RM35.85	RM10.25	RM46.10	RM25.60
26	When wages exceed RM2,100 but not RM2,200	RM37.65	RM10.75	RM48.40	RM26.90
27	When wages exceed RM2,200 but not RM2,300	RM39.35	RM11.25	RM50.60	RM28.10
28	When wages exceed RM2,300 but not RM2,400	RM41.15	RM11.75	RM52.90	RM29.40
29	When wages exceed RM2,400 but not RM2,500	RM42.85	RM12.25	RM55.10	RM30.60
30	When wages exceed RM2,500 but not RM2,600	RM44.65	RM12.75	RM57.40	RM31.90
31	When wages exceed RM2,600 but not RM2,700	RM46.35	RM13.25	RM59.60	RM33.10
32	When wages exceed RM2,700 but not RM2,800	RM48.15	RM13.75	RM61.90	RM34.40
33	When wages exceed RM2,800 but not RM2,900	RM49.85	RM14.25	RM64.10	RM35.60
34	When wages exceed RM2,900 but not RM3,000	RM51.65	RM14.75	RM66.40	RM36.90
35	When wages exceed RM3,000 but not RM3,100	RM53.35	RM15.25	RM68.60	RM38.10
36	When wages exceed RM3,100 but not RM3,200	RM55.15	RM15.75	RM70.90	RM39.40
37	When wages exceed RM3,200 but not RM3,300	RM56.85	RM16.25	RM73.10	RM40.60
38	When wages exceed RM3,300 but not RM3,400	RM58.65	RM16.75	RM75.40	RM41.90
39	When wages exceed RM3,400 but not RM3,500	RM60.35	RM17.25	RM77.60	RM43.10
40	When wages exceed RM3,500 but not RM3,600	RM62.15	RM17.75	RM79.90	RM44.40
41	When wages exceed RM3,600 but not RM3,700	RM63.85	RM18.25	RM82.10	RM45.60
42	When wages exceed RM3,700 but not RM3,800	RM65.65	RM18.75	RM84.40	RM46.90
43	When wages exceed RM3,800 but not RM3,900	RM67.35	RM19.25	RM86.60	RM48.10
44	When wages exceed RM3,900 but not RM4,000	RM69.15	RM19.75	RM88.90	RM49.40
45	When wages exceed RM4,000 but not RM4,100	RM70.85	RM20.25	RM91.10	RM50.60
46	When wages exceed RM4,100 but not RM4,200	RM72.65	RM20.75	RM93.40	RM51.90
47	When wages exceed RM4,200 but not RM4,300	RM74.35	RM21.25	RM95.60	RM53.10
48	When wages exceed RM4,300 but not RM4,400	RM76.15	RM21.75	RM97.90	RM54.40
49	When wages exceed RM4,400 but not RM4,500	RM77.85	RM22.25	RM100.10	RM55.60
50	When wages exceed RM4,500 but not RM4,600	RM79.65	RM22.75	RM102.40	RM56.90
51	When wages exceed RM4,600 but not RM4,700	RM81.35	RM23.25	RM104.60	RM58.10
52	When wages exceed RM4,700 but not RM4,800	RM83.15	RM23.75	RM106.90	RM59.40
53	When wages exceed RM4,800 but not RM4,900	RM84.85	RM24.25	RM109.10	RM60.60
54	When wages exceed RM4,900 but not RM5,000	RM86.65	RM24.75	RM111.40	RM61.90
55	When wages exceed RM5,000 but not RM5,100	RM88.35	RM25.25	RM113.60	RM63.10
56	When wages exceed RM5,100 but not RM5,200	RM90.15	RM25.75	RM115.90	RM64.40
57	When wages exceed RM5,200 but not RM5,300	RM91.85	RM26.25	RM118.10	RM65.60
58	When wages exceed RM5,300 but not RM5,400	RM93.65	RM26.75	RM120.40	RM66.90
59	When wages exceed RM5,400 but not RM5,500	RM95.35	RM27.25	RM122.60	RM68.10
60	When wages exceed RM5,500 but not RM5,600	RM97.15	RM27.75	RM124.90	RM69.40
61	When wages exceed RM5,600 but not RM5,700	RM98.85	RM28.25	RM127.10	RM70.60
62	When wages exceed RM5,700 but not RM5,800	RM100.65	RM28.75	RM129.40	RM71.90
63	When wages exceed RM5,800 but not RM5,900	RM102.35	RM29.25	RM131.60	RM73.10
64	When wages exceed RM5,900 but not RM6,000	RM104.15	RM29.75	RM133.90	RM74.40
65	When wages exceed RM6,000	RM104.15	RM29.75	RM133.90	RM74.40

How to Calculate KWSP Contributions / Cara Kira Potongan KWSP

Calculating KWSP deductions may look complicated at first, but once you understand the structure, it becomes easier to manage across different salary levels.

The total contribution is made up of two parts: the employee’s share (deducted from their salary) and the employer’s share (paid by the company).

Let’s look at three real-world scenarios based on current 2024/2025 rates:

1. Example: Employee under 60 years old with RM3,000 salary

Employee contribution: 11% × RM3,000 = RM330
Employer contribution: 13% × RM3,000 = RM390
Total monthly contribution: RM720

2. Example: Employee under 60 years old with RM6,000 salary

Employee contribution: 11% × RM6,000 = RM660
Employer contribution: 12% × RM6,000 = RM720
Total monthly contribution: RM1,380

3. Example: Employee aged 60 and above with RM3,000 salary

Employee contribution: 0%
Employer contribution: 4% × RM3,000 = RM120
Total monthly contribution: RM120

For workers above 60, only the employer needs to contribute. The employee is no longer deducted.

KWSP Contributions for Malaysians vs Permanent Residents

Both Malaysian citizens and permanent residents are required to contribute to KWSP. The rates are the same, based on the employee’s salary and age group.

However, for foreign workers who are not permanent residents, contributions are voluntary or follow special rates depending on registration dates (e.g., RM5 monthly flat rate for non-citizens registered after 1 August 1998).

Employer's Role in KWSP Submission and Payment

As the employer, you are responsible for:

Calculate monthly KWSP contributions accurately.
Submit payments via e-Caruman by the 15th of every month.
Keeping records for audit purposes and resolving any errors immediately.

Failure to submit on time can result in late charges, penalties, or legal action from KWSP.

It’s best to maintain a payroll schedule and double-check each month’s submission to stay compliant.

How to Calculate SOCSO Contributions / Cara Kira Potongan SOCSO

To calculate SOCSO, you need to know two things:

The employee’s monthly salary.
Whether the employee is below or above 60 years old.

Let’s break it down by category:

First Category: Employees Below 60 Years Old

Example 1: Employee with RM2,000 salary

Employer contributes RM24.75 (SOCSO) + RM3.10 (EIS) = RM27.85
Employee contributes RM7.10 (SOCSO) + RM0.95 (EIS) = RM8.05
Total contribution: RM35.90

Example 2: Employee with RM5,000 salary

Employer contributes RM69.05 (SOCSO) + RM7.90 (EIS) = RM76.95
Employee contributes RM19.75 (SOCSO) + RM2.65 (EIS) = RM22.40
Total contribution: RM99.35

Second Category: Employees Aged 60 and Above

For employees aged 60 and above, only the Employment Injury Scheme applies. They do not contribute to the Invalidity Scheme or EIS.

Example 3: Employee aged 62 earning RM3,000

Employer contributes RM17.65 (SOCSO only)
Employee contributes 0
Total contribution: RM17.65

Employer's Role in SOCSO Submission & Payment

Each month, employers must:

Use iPERKESO to submit SOCSO and EIS payments.
Follow the official contribution schedule from PERKESO to calculate the correct amount.
Submit payments by the 15th of each month to avoid penalties.

SOCSO contributions are an important part of compliance. Mistakes or delays can result in legal fines and delay your workers' claims processing.

Having a proper payroll system or HR software can help simplify this step.

KWSP & SOCSO Tools to Help You Calculate

Instead of calculating manually every time, you can use these tools:

KWSP Calculator
SOCSO Calculator
Payroll Software: Platforms like Kakitangan, HReasily, or PayrollPanda simplify all calculations and submissions for you.

These tools help reduce human error and save time.

Employer's Responsibilities

When it comes to monthly deductions like KWSP and SOCSO, the responsibility doesn’t stop at calculating the right amount.

As the employer, you have legal duties to handle the deductions correctly and on time.

1. Submit Contributions Monthly

KWSP and SOCSO contributions must be submitted every month. For KWSP, you submit via e-Caruman, and for SOCSO and EIS, submissions are done through iPERKESO.

These platforms are designed to streamline the process, but you need to keep track of deadlines.

2. Know the Payment Deadlines

KWSP: Payment must be made by the 15th of the following month. If this falls on a weekend or public holiday, the payment should be made earlier.
SOCSO: Contributions should also be paid by the 15th of the following month.

Missing the deadline, even by one day, may result in late payment penalties.

3. Keep Accurate Records

You must keep clear documentation of all payment slips, payroll reports, and employee details. These records are important in case of audit or dispute.

4. Avoid Late or Wrong Submission

If you submit the wrong amount or miss the deadline, you may be subject to:

Interest or penalty fees
Legal action by the respective agencies
Delays in processing employee benefits

Common Mistakes to Avoid

Even experienced HR teams and employers sometimes get deductions wrong.

These small mistakes can lead to penalties or missed benefits for your workers. Here are a few key things to watch out for:

Misclassifying Employees

Not every person working for you is a full-time staff.

But if someone is working under a contract of service, whether part-time or full-time, they are generally eligible for KWSP and SOCSO contributions.

Treating them as freelancers when they are not can lead to legal issues.

Not Updating Employee Status

As your employees grow older or leave the company, their contribution category may change.

For example, employees who turn 60 will move to a lower contribution rate for SOCSO and KWSP.

If you keep deducting based on their previous category, that’s a mistake, and you may be held accountable.

Ignoring Rate Changes or Updated Schedules

Every year or so, KWSP and SOCSO may update their contribution tables.

If you keep using outdated rates, you may underpay or overpay, which can disrupt your company’s cash flow or result in fines.

Relying on Manual Calculations Without Cross-Checking

Manual calculations are prone to human error, especially if you handle many employees.

Use official calculators from KWSP or PERKESO, or invest in payroll software that automatically applies the latest contribution rates based on salary and age.

FAQ

Do interns or part-time workers contribute to KWSP and SOCSO?

Yes, if there is a valid employment contract and working hours meet the required percentage of a full-timer’s schedule (usually 30% to 70%), they must contribute.

What if the employee is above 60 years old?

They no longer contribute to KWSP, but the employer still contributes a reduced percentage. For SOCSO, they fall under the second category and still get employment injury protection.

Can foreign workers contribute to KWSP and SOCSO?

Yes. But for SOCSO, only workers with a valid contract and proper documentation are eligible. Some foreign workers may not be eligible for EIS.

What happens if contributions are missed?

You risk being fined or blacklisted. It also affects your employees' benefits and may damage your credibility with authorities.

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