EPF, SOCSO, EIS and PCB in 2026: what a small employer pays each month

Every month, a Malaysian employer pays four things on top of, or out of, each employee's salary: EPF for retirement, SOCSO for injury and invalidity, EIS for job loss, and PCB, the monthly income tax deduction. Here is what each one is, who pays it, when it is due, and what it adds up to for a small team.

The four contributions at a glance

What it is forEmployer paysEmployee paysPaid to
EPF (KWSP)Retirement savings13% of wages up to RM5,000; 12% above RM5,00011%KWSP
SOCSO (PERKESO)Injury and invalidity cover1.75% (first category)0.5% (first category)PERKESO
EISIncome support if a job is lost0.2%0.2%PERKESO
PCB (MTD)Monthly income taxDeducts and pays it overThe tax itself, from salaryLHDN

Rates for employees under 60. EPF and SOCSO use the official tables by wage band, so exact amounts can differ by a few sen from a straight percentage.

EPF (KWSP)

  • Malaysians, permanent residents and non-Malaysians who registered before 1 August 1998, below 60: the employer pays 13% of monthly wages up to RM5,000 and 12% above RM5,000. The employee pays 11%.
  • Malaysians aged 60 and above: the employer pays 4%; the employee pays nothing.
  • Non-Malaysian employees registered from 1 August 1998: 2% from the employer and 2% from the employee, for wages from October 2025.
  • Use KWSP's Third Schedule table, not a straight percentage, except for wages above RM20,000. The total is rounded up to the next ringgit.
  • Pay by the 15th of the following month: January's salary by 15 February.

SOCSO (PERKESO)

  • First category, employees under 60: the employer pays 1.75% and the employee 0.5% of monthly wages, by PERKESO's contribution schedule. It covers the Employment Injury Scheme and the Invalidity Scheme.
  • Second category, employees aged 60 and above: 1.25%, paid by the employer only, for the Employment Injury Scheme.
  • New employees who are 55 or older with no earlier contributions go into the second category.

EIS (Employment Insurance System)

  • 0.4% of the employee's assumed monthly salary: 0.2% from the employer and 0.2% from the employee.
  • Applies to private-sector employees aged 18 to 60. Those aged 57 and above with no contributions before 57 are exempt.
  • Contributions are capped at an assumed monthly salary of RM6,000.

PCB (Monthly Tax Deduction)

  • Each month the employer deducts the employee's income tax from salary, using LHDN's MTD schedule or the computerised method, and pays it to LHDN by the 15th of the following month.
  • The amount depends on each employee's income, reliefs and family situation, so there is no single rate. LHDN's e-PCB Plus works it out and takes the payment.

A worked example: five employees, one month

Monthly wages: RM2,500, RM3,000, RM3,500, RM4,000 and RM5,000 (RM18,000 in total), all under 60.

Employer paysDeducted from employees
EPF (13% / 11%)RM2,340RM1,980
SOCSO (1.75% / 0.5%)about RM315about RM90
EIS (0.2% / 0.2%)about RM36about RM36
Totalabout RM2,691about RM2,106, plus each person's PCB

So on RM18,000 of salaries, the business pays about RM2,691 more, and the team takes home about RM2,106 less before tax. The official tables round each person's amount by wage band, so the real figures differ slightly.

When it is all due

EPF and PCB are due by the 15th of the month after the salary month. SOCSO and EIS are paid monthly to PERKESO through its ASSIST portal.

How Officaid will help

We are building payroll for Malaysia that works out EPF, SOCSO, EIS and PCB for every employee each month, with the files you need to pay them. Join the early access list to try it first.

Sources (read 30 Oct 2026)