What does Pertubuhan Keselamatan Sosial (PERKESO) mean?
Pertubuhan Keselamatan Sosial, usually shortened to PERKESO, is Malaysia’s Social Security Organisation. In English, it is commonly referred to as SOCSO. Employers may see both names used in payroll, HR documents, government portals, and employee communications.
PERKESO administers social security protection for eligible employees in Malaysia. This may include the Employment Injury Scheme, Invalidity Scheme, and Employment Insurance System, depending on employee eligibility and applicable contribution rules.
For employers, PERKESO is a core Malaysia payroll item. It is not the same as EPF/KWSP or Monthly Tax Deduction. EPF is linked to retirement savings, MTD/PCB is linked to employee income tax, while PERKESO/SOCSO and EIS relate to employment social security and employment insurance protection.
Why PERKESO matters for employers
PERKESO matters because employers need to calculate, deduct, contribute, and remit the correct statutory amounts through payroll. These contributions affect both employee protection and total employment cost.
The official PERKESO contribution rate page provides contribution references for SOCSO and EIS. PERKESO also notes that the contribution wage ceiling was increased from RM5,000 to RM6,000 per month effective 1 October 2024, which is important for payroll teams using contribution tables or payroll software.
For international businesses hiring employees in Malaysia, PERKESO should be reviewed together with EPF, EIS, MTD/PCB, HRD Corp Levy where applicable, payslips, employment contracts, and final pay. A gross salary offer is not the full employment cost unless employer statutory contributions are included.
Weshine’s payroll service can support employers that need help managing salary payments, statutory deductions, payslips, and payroll records across Southeast Asia.
PERKESO in Malaysia payroll
A practical Malaysia payroll setup should distinguish between employee deductions and employer contributions.
Note: This table is a general guide. Employers should verify the latest PERKESO contribution schedules, wage ceiling, eligibility rules, and payroll treatment before processing Malaysia payroll.
PERKESO and overseas employers hiring in Malaysia
Overseas employers hiring employees in Malaysia should not assume that salary payment alone is enough. If the employee is locally employed in Malaysia, payroll should account for PERKESO, EPF, EIS, MTD/PCB, payslips, payroll records, and other local requirements.
If the business does not have a Malaysian entity, it may need a compliant local employment structure before hiring. Weshine’s Employer of Record service can support businesses that want to hire employees in Malaysia without setting up a local entity.
Common mistakes employers should avoid
A common mistake is confusing PERKESO with EPF. Both are statutory payroll items in Malaysia, but they serve different purposes and have different contribution rules.
Another mistake is using outdated contribution tables. PERKESO contribution ceilings and schedules may change, so employers should verify the latest official contribution guidance before payroll is processed.
Employers should also avoid combining all statutory deductions into one unclear payslip line. Employees should be able to understand what is deducted from salary and what is contributed by the employer.
