EPF, SOCSO and EIS explained for global employers
The three statutory contributions every Malaysian employer must make — what they are, how much they cost, and who pays.
If you're hiring in Malaysia, you'll see three acronyms on every payslip: EPF, SOCSO and EIS. Here's what each one is and what it costs.
EPF — Employees Provident Fund
A mandatory retirement savings scheme. The employee contributes 11% of monthly wages and the employer contributes 12% (or 13% for wages under MYR 5,000). Contributions are remitted monthly to KWSP.
SOCSO — Social Security Organisation
Covers employment injury and invalidity. Both employer and employee contribute roughly 1.75% / 0.5% of wages, capped at a wage ceiling of MYR 6,000.
EIS — Employment Insurance System
Provides temporary financial assistance for retrenched workers. Employer and employee each contribute 0.2% of wages, capped at MYR 6,000.
What this means for total cost
For a typical MYR 8,000/month hire, the employer's statutory cost on top of base salary is roughly 13–14%. EOR Malaysia handles registration, monthly remittance and reporting end-to-end so you never miss a filing.