{"id":110,"date":"2026-10-19T02:05:00","date_gmt":"2026-10-19T02:05:00","guid":{"rendered":"https:\/\/vivosgroup.com\/my\/?p=110"},"modified":"2026-10-12T00:25:45","modified_gmt":"2026-10-12T00:25:45","slug":"malaysia-employer-obligations-epf-socso-eis","status":"publish","type":"post","link":"https:\/\/vivosgroup.com\/my\/insights\/malaysia-employer-obligations-epf-socso-eis\/","title":{"rendered":"Hiring in Malaysia: EPF, SOCSO, EIS, HRD Corp and PCB Obligations in 2026"},"content":{"rendered":"\n
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Insights \u00b7 Malaysia Employment<\/p>\n\n\n\n

Hiring in Malaysia: EPF, SOCSO, EIS, HRD Corp and PCB Obligations in 2026<\/h1>\n\n\n\n

A Malaysian employer must register with the Employees Provident Fund (EPF) within 7 days of its first hire and pay contributions monthly by the 15th. EPF is 13% from the employer and 11% from the employee on wages up to RM5,000 (12% employer above that), and 2% each for non-citizen staff from October 2025 wages. SOCSO adds 1.75% employer and 0.5% employee, and EIS 0.2% each, on wages capped at RM6,000. HRD Corp levies 1% at 10 or more Malaysian employees, and PCB tax is remitted by the 15th.<\/p>\n\n\n\n

This guide is for founders and finance teams taking on their first Malaysian employees, including foreign staff. It sets out the registrations, contribution rates and wage ceilings, the HRD Corp levy, monthly tax deductions and reporting forms, and a payroll checklist.<\/p>\n<\/div>\n\n\n\n

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Obligation<\/th>Position at 2 October 2026<\/th><\/tr>
EPF registration<\/td>Within 7 days of becoming liable, which is as soon as the first employee is hired<\/td><\/tr>
EPF, Malaysians under 60<\/td>Employer 13% on wages of RM5,000 or less, 12% above; employee 11%; no wage ceiling<\/td><\/tr>
EPF, non-citizen employees<\/td>Employer 2% and employee 2% from October 2025 wages; domestic workers excluded<\/td><\/tr>
SOCSO, employees under 60<\/td>Employer 1.75% and employee 0.5% of wages up to RM6,000 a month<\/td><\/tr>
EIS<\/td>Employer 0.2% and employee 0.2% of wages up to RM6,000; not for foreign employees<\/td><\/tr>
HRD Corp levy<\/td>1% of wages at 10 or more Malaysian employees in covered sectors; 0.5% optional at 5 to 9<\/td><\/tr>
Tax (LHDN)<\/td>e-CP22 within 30 days of a hire; PCB remitted by the 15th of the following month<\/td><\/tr>
Monthly payment date<\/td>EPF, SOCSO, EIS, HRD levy and PCB all by the 15th of the following month<\/td><\/tr><\/tbody><\/table><\/figure>\n<\/div>\n\n\n\n
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Registering as an Employer<\/h2>\n\n\n\n

The first hire triggers several registrations. Under section 41(1) of the EPF Act 1991, an employer registers with the EPF within 7 days of becoming liable, which is as soon as an employee is employed. Any private employer with one or more employees also registers with the Social Security Organisation (PERKESO) for SOCSO and the Employment Insurance System (EIS), and with the Inland Revenue Board (LHDN) for an employer\u2019s number, submitting form e-CP22 through MyTax within 30 days of each new hire.<\/p>\n\n\n\n

Foreign hires add a labour step. Under section 60K of the Employment Act 1955, an employer needs prior approval from the Director General of Labour before employing a foreign employee, on top of the immigration pass. Since the 2022 amendments the Act covers employees at every salary level, although some protections, such as overtime pay, apply only to employees earning RM4,000 a month or less or working in specified occupations. Check every role against the Minimum Wages Order as well: the 2024 Order sets RM1,700 a month, and Budget 2027 proposes RM2,000 from June 2027 except for MSMEs with annual sales below RM50 million.<\/p>\n<\/div>\n\n\n\n

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EPF Rates, Including Foreign Staff<\/h2>\n\n\n\n

For Malaysian citizens and permanent residents under 60, the EPF\u2019s Third Schedule sets the employer share at 13% on monthly wages of RM5,000 or less and 12% above that, with 11% deducted from the employee. For Malaysian citizens aged 60 and over, the employer pays 4% and the employee nothing. EPF has no wage ceiling, so the percentages apply to the full wage. Payment is due by the 15th of the following month.<\/p>\n\n\n\n

The main change for international employers took effect with October 2025 wages, paid by 15 November 2025. EPF contributions became mandatory for non-citizen employees who hold a valid passport and work pass, including Employment Pass holders, at 2% from the employer and 2% from the employee. Domestic workers are excluded, and permanent residents stay on the citizen rates. Budget proposals, including those in Budget 2027 tabled on 9 October 2026, take effect only once legislated.<\/p>\n<\/div>\n\n\n\n

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SOCSO, EIS and the LINDUNG 24 Jam Scheme<\/h2>\n\n\n\n

PERKESO runs two SOCSO categories. Employees under 60 are covered for employment injury and invalidity, with 1.75% of wages from the employer and 0.5% from the employee. Employees aged 60 and over are covered for employment injury only, at 1.25% paid by the employer. The wage ceiling rose from RM5,000 to RM6,000 on 1 October 2024. Foreign workers, including Employment Pass holders, have been covered for employment injury since 1 January 2019 and for invalidity since 1 July 2024, so they now pay the same rates.<\/p>\n\n\n\n

EIS applies to private-sector employees aged 18 to 60, at 0.2% from each side on wages up to RM6,000. Domestic workers are exempt, as are employees who reach 57 without having contributed before, and EIS does not apply to foreign employees. PERKESO requires each month\u2019s contributions by the 15th of the following month and charges interest on late payments.<\/p>\n\n\n\n

From 1 June 2026, PERKESO\u2019s LINDUNG 24 Jam non-employment injury scheme covers accidents outside working hours. The contribution is 0.75% of wages, capped at RM44.65 a month, borne by the employee and remitted by the employer, rising to 1% and then 1.25% in later phases. PERKESO now lists it as mandatory for foreign workers and voluntary for local employees, so confirm each employee\u2019s status before running payroll.<\/p>\n<\/div>\n\n\n\n

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HRD Corp Levy, PCB and Year-End Forms<\/h2>\n\n\n\n

Under the Pembangunan Sumber Manusia Berhad Act 2001, employers in the sectors listed in its First Schedule must register with HRD Corp once they have 10 or more Malaysian employees and pay a levy of 1% of monthly wages, which HRD Corp defines as basic salary plus fixed allowances. Employers with 5 to 9 Malaysian employees may register voluntarily at 0.5%. The levy is due by the 15th of each month and cannot be deducted from employees\u2019 pay.<\/p>\n\n\n\n

LHDN requires monthly tax deductions (PCB, also called MTD) to be remitted by the 15th of the following month. File form CP22A at least 30 days before an employee\u2019s employment ends, and form CP21 at least 30 days before an employee leaves Malaysia for more than three months, which matters when expatriates go home. Form EA goes to every employee by the end of February and Form E to LHDN by 31 March, as our compliance calendar explains.<\/p>\n<\/div>\n\n\n\n

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Payroll Checklist for Malaysian Employers<\/h2>\n\n\n\n