Effective 1 September 2022 a new salary ceiling for SOCSO Contribution will increase from RM4000 to RM5000. According to SOCSO, the contribution amount for employees earning more than RM5,000 monthly will follow the salary ceiling limit of RM5,000.
Malaysia’s Ministry of Human Resources, through the Social Security Organisation (PERKESO, also known as SOCSO) will enforce a new salary ceiling for contribution purposes, effective 1 September 2022.
In increasing this contribution salary ceiling, the Employee Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800) will be amended to increase the salary ceiling limit for contribution purposes from RM4,000 to RM5,000 per month.
Specifically, the contribution amount that will apply to employees who earn more than RM4,000 per month will follow the Third Schedule of Act 4(Annex 1) and the Second Schedule of Act 800.
For employees who earn more than RM5,000 per month, the contribution amount will follow the salary ceiling limit of RM5,000. Therefore, employers must make contribution payments in accordance with the new salary ceiling limit amendment starting September 2022. Employers are also requested to record the amount of contribution deductions in their respective employee’s statements or pay slips, for the purpose of records and inspection activities by SOCSO.
For SQL Payroll System user, it is compulsory to upgrade to version 184 before you process your September 2022 Salary, else SOCSO calculation will be incorrect for employee salary above RM4,000.
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