Payroll Services

Employer Compliance

Hiring Employees?
Know Who You'll Be Dealing With.

Hiring comes with ongoing employer responsibilities. These are some of the key Malaysian authorities and statutory bodies involved in payroll, contributions and employer reporting.

Ensuring Compliance in Every Hire

Grow your business with confidence. Stay on top of the Employment Act 1955, statutory contributions and essential employer responsibilities, without letting payroll compliance become a burden.

```

Employees’ Provident Fund (EPF) Contribution

Mandatory contribution under the Employees Provident Fund Act 1991.

Employee’s Status	Monthly Salary Rate	Below 60 years old	Age 60 and above
Malaysian	RM5,000 and below	Employee: 11% Employer: 13%	Employee: 0% Employer: 4%
Malaysian	More than RM5,000	Employee: 11% Employer: 12%	Employee: 0% Employer: 4%
Non-Malaysian*	No Limit	Employee: 2% Employer: 2%	Employee: 2% Employer: 2%

*The 2% / 2% rate shown above applies to the relevant non-Malaysian employee category. Permanent residents and certain existing EPF members may be subject to different contribution rates.

i Please refer to the KWSP official contribution schedule ↗ for the applicable statutory contribution amount.

Potongan Cukai Bulanan (PCB)

Monthly Tax Deduction (MTD) from an employee’s remuneration for income tax purposes.

Monthly Tax Deduction

PCB is a mechanism where employers deduct income tax from employees’ remuneration on a monthly basis.

PCB Calculation

The PCB amount is determined according to the applicable Monthly Tax Deduction calculation method and relevant employee information, deductions and rebates.

Employer Submission

Employers are responsible for deducting the applicable PCB from employees’ remuneration and remitting the deduction to HASiL.

i Calculate the applicable monthly tax deduction using the HASiL PCB Calculator ↗

Social Security Organisation (SOCSO) Contribution

Social security protection administered by PERKESO under the Employees’ Social Security Act 1969 (Act 4).

First Category

Generally applicable to eligible employees below 60 years old and provides protection under the Employment Injury Scheme and Invalidity Scheme.

1.75% + 0.5%

Employer: 1.75%
Employee: 0.5%

Second Category

Applies to eligible employees who have attained age 60 and certain employees aged 55 or above without previous contributions.

1.25%

Employer: 1.25%
Employee: Nil

Contribution Wage Ceiling

Contributions are calculated according to PERKESO's statutory contribution schedule.

RM6,000

Monthly contribution wage ceiling.

i Foreign workers are covered by PERKESO under specific contribution and protection rules. The applicable employee category should be checked before calculating the contribution.

↗ View the official PERKESO Act 4 Contribution Schedule ↗

Skim Kemalangan Bukan Bencana Kerja (LINDUNG 24 JAM)

SKBBK provides 24-hour protection for eligible employees against accidents occurring outside working hours and not directly related to employment.

Local Employees

Voluntary Participation

Participation is no longer compulsory for local employees. Eligible local employees may participate voluntarily.

Voluntary

Contributions are fully borne by the employee.

Foreign Workers

Mandatory Participation

SKBBK remains mandatory for foreign workers in accordance with the applicable legal provisions.

Mandatory

The contribution is borne by the employee.

Wage Ceiling

Contribution Limit

SKBBK contributions are calculated based on monthly wages subject to the applicable PERKESO contribution schedule.

RM6,000

Current monthly contribution wage ceiling.

Employee Contribution Phases

Contribution rates are implemented progressively.

Phase 1

0.75%

June 2026 to May 2028

Phase 2

1.00%

June 2028 to May 2031

Phase 3

1.25%

From June 2031 onwards

i SKBBK contributions are fully borne by the employee. The employer makes the contribution payment on behalf of the employee while the employee remains employed.

↗ Learn more about PERKESO LINDUNG 24 JAM ↗

↗ Refer to the official PERKESO Contribution Rates ↗ for the applicable contribution amount.

Employment Insurance System (EIS)

Employment insurance protection administered by PERKESO under the Employment Insurance System Act 2017 (Act 800).

Eligible Employees

Employee Contribution

0.2%

Employee contribution subject to the applicable statutory contribution schedule and eligibility.

Employer

Employer Contribution

0.2%

Employer contribution subject to the applicable statutory contribution schedule.

Foreign Workers

EIS Contribution

Not Applicable

Foreign workers are not covered under the Employment Insurance System (Act 800).

↗ View the official PERKESO Act 800 Contribution Schedule ↗

Human Resource Development Corporation (HRD Corp)

Employer registration and levy requirements under the Pembangunan Sumber Manusia Berhad Act 2001.

Compulsory

10 or More Malaysian Employees

Employers with 10 or more Malaysian employees are required to register with HRD Corp.

Monthly levy: 1% of relevant monthly wages.

Optional

5 to 9 Malaysian Employees

0.5%

Employers with 5 to 9 Malaysian employees may register voluntarily.

Where registered, monthly levy: 0.5% of relevant monthly wages.

i Visit the HRD Corp Registered Employers page ↗ for registration and levy requirements.

Zakat

Zakat payments may be relevant to payroll deductions, PCB calculations and individual income tax rebates for eligible Muslim employees.

Zakat Payment

Zakat obligations and calculations depend on the applicable type of zakat and relevant Islamic religious authority.

PCB Treatment

Eligible zakat payments may be taken into account when determining the employee’s PCB amount.

Income Tax Rebate

Qualifying zakat or fitrah payments may be claimed as an income tax rebate, subject to applicable tax rules and limits.

↗ For income tax treatment, refer to HASiL: Tax Rebates ↗

Payroll solutions that we offer.

Practical payroll support designed to help employers manage their ongoing responsibilities with confidence.

Employer File Registration

Setting up the required employer registrations and payroll-related accounts for your business.

Monthly Payroll

Monthly salary processing, statutory deductions, contribution calculations and payroll preparation.

Annual Submission

Preparation of relevant annual payroll information and employer reporting requirements.

Leaver Handling

Supporting final payroll calculations and applicable employee cessation requirements.

FAQs

1) When does the company needs to register employer file? (E.g. KWSP, SOCSO, EIS and PCB)

Newly hired employee must be registered with KWSP, SOCSO and EIS, meanwhile, registration of employer file is compulsory for employer wise.

Note: E file number (PCB) is automatically registered with LHDN upon incorporation , with effective from year 2020.

2) Is it compulsory to register with HRD Corp?

It is COMPULSORY to register with HRD Corp should the Company hired 10 and above Malaysian employees

It is OPTIONAL for Company should it only hired between 5 to 9 Malaysian employees.

3) When the Company has no longer has employee, can the employer file be closed?

Yes, the Company can close all the employer file except E file (LHDN: PCB).

Company needs to cease its operation in order to close E file.

Note: Form E is compulsory to be submitted in yearly basis regardless the company has staff or not.

4) When is the due date to pay salary to staff?

Section 19 of the Employment Act says, an employer shall distribute salary to the employees not later than the seventh day after the last day of any wage period.

5) When is the due date for contribution payment?

Contribution’s payment is due on on the 15th day of every month.

For example, contributions for June 2022 must pay to the relevant government department before/on 15th July 2022.

6) Any penalty of contributions late payment?

KWSP	Calculate by KWSP
SOCSO	RM5 per month
EIS	RM5 per month
LHDN: PCB	10% Arrears Payment (RM) x 10% minimum penalty is RM200.00
HRDCorp	10% Arrears Payment (RM) x 10% x Number of days late / 365 days minimum penalty is RM5

7) How to submit the form and payment for contribution?

All the form submission and payment via the following portal:

KWSP	i-Akauan Portal
SOCSO & EIS	Perkeso Assist Portal
LHDN: PCB	e-PCB or e-Data PCB Portal
HRDCorp	HRD Corp Portal