Editor’s Note: This post was originally written on 9 July 2020, but has been updated and republished to for the year 2022. Rates and figures mentioned below are applicable for 2022 and beyond, until there is further revision.
So, you’ve read our first article EIS PERKESO Malaysia: What is the Employment Insurance System? (Part 1), and have gotten a good understanding of what it is, who qualifies for it, and how to apply for it in the event that you lose your job.
Now, let’s find out how much you’re actually contributing to EIS and how the amount is being deducted from your salary. We’ve also created an infographic for the EIS contribution rates, so that you may download it for reference, or share it with your peers.
As a quick recap, one thing that we’d mentioned in the first article is that both employers and employees must make monthly EIS contributions. In this article, let’s take a look at how much both parties need to contribute.
What is the EIS Contribution Rate (Employer)?
Employers need to make a 0.2% contribution for each of their employees.
All employers in the private sector whose employees are covered under the Employment Act are required to pay contributions on behalf of their employees, except for those listed here (under “Who qualifies for EIS?”).
What is the EIS Contribution Rate (Employee)?
Similarly, employees need to make a 0.2% contribution of their salary to EIS.
I don’t earn much. Do I still need to contribute to EIS?
Yes, you’ll still need to contribute to EIS. Contributions start from 5 sen for both employer and employee.
The table below shows the EIS contributions for monthly wages/salary (gaji) up to RM1000.
For amounts more than RM1000, you may refer to our infographic in the next section.
|MONTHLY WAGES (GAJI)||EMPLOYEE CONTRIBUTION (CARUMAN PEKERJA)||EMPLOYER CONTRIBUTION (CARUMAN MAJIKAN)||TOTAL CONTRIBUTION (JUMLAH CARUMAN)|
|Up to RM30||5 sen||5 sen||10 sen|
|> RM30 to RM50||10 sen||10 sen||20 sen|
|> RM50 to RM70||15 sen||15 sen||30 sen|
|> RM70 to RM100||20 sen||20 sen||40 sen|
|> RM100 to RM140||25 sen||25 sen||50 sen|
|> RM140 to RM200||35 sen||35 sen||70 sen|
|> RM200 to RM300||50 sen||50 sen||RM1.00|
|> RM300 to RM400||70 sen||70 sen||RM1.40|
|> RM400 to RM500||90 sen||90 sen||RM1.80|
|> RM600 to RM700||RM1.30||RM1.30||RM2.60|
|> RM700 to RM800||RM1.50||RM1.50||RM3.00|
|> RM800 to RM900||RM1.70||RM1.70||RM3.40|
|> RM900 to RM1000||RM1.90||RM1.90||RM3.80|
An infographic: EIS contribution table
Following amendments to the Employees Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800), the ceiling limit for employees’ monthly salary has now been increased from RM4,000 to RM5,000.
For monthly salary/wages (gaji) more than RM1000 and up to RM5000, you may refer to this infographic of the EIS Contribution Table (Kadar Caruman SIP).
UPDATE: Employees who earn monthly salaries between RM4,000 and RM5,000 must now make increased EIS contributions (refer to PERKESO’s latest contribution rates here).
Looking at the table above, why is my EIS contribution not exactly 0.2% of my wages/salary (gaji)?
The actual contribution amount follows Section 18, Second Schedule of the Employment Insurance Act 2017, not the exact 0.2 percent calculation.
Therefore, the amount reflected on your payslip will not be exactly 0.2 percent of your salary/wages (gaji). Please do not simply calculate 0.2% x Your Monthly Salary. This is not the correct way to determine your EIS contribution.
Instead, you should follow the amounts stated on the EIS contribution table shown above.
Is there EIS capping?
Previously, employees earning monthly wages above RM4,000 were subject to flat contribution rates for both SOCSO (Employer: RM69.05; Employee: RM19.75) & EIS (Employer & Employee: RM7.90).
Now, EIS contributions are capped at a salary, or gaji, of RM5000 each month. This means the actual EIS contribution amount is capped at RM9.90 from employers, and RM9.90 from employees. Total cap for both is RM15.80.
Here’s an example:
Yusri earns RM7000 per month. His EIS contribution would be capped at a salary of RM5000. This means that Yusri’s EIS contribution from his employer is RM9.90, and his own contribution would also be RM9.90. In total, he would have RM19.80 contributed to SOCSO per month.
As an employer, how do I pay the EIS for my employee?
EIS contributions can be paid through the same channels as SOCSO contributions. There are various ways to do so, such as online payment or manual payment methods.
What is the easiest way to calculate EIS for my employees and make payment?
For your convenience, you may want to consider using a payroll software like Talenox to help take your mind off manually calculating and recording EIS payments for each employee.
As an employer/manager, you can simply generate your usual payroll each month. EIS contributions and other statutory payments will be automatically calculated for all eligible employees and reflected in their paychecks. An EIS file (.txt) will also be generated for you after you process your monthly payroll.
Simply select and save the file on your computer, then log in to the PERKESO Assist Portal to submit the file. From the portal, you can make an online payment via FPX.
By using payroll software with the PERKESO Assist Portal, all EIS calculations and payments (employer and employee) are securely tracked and recorded. You will no longer worry about incorrect payment amounts and missing cheques. For step-by-step guides on how easy it is to calculate and make payments via Talenox, you may refer to this guide.
How do I log in to the PERKESO Assist Portal?
You must first register for an account with PERKESO to get your username and password.
Here are the steps:
- Download and fill out this form – SOCSO Portal ID Registration Form (BORANG PENDAFTARAN ID PORTAL PERKESO).
- Once you have filled out the form, you may email it to firstname.lastname@example.org, or print and submit a hardcopy form to the nearest PERKESO/SOCSO office. Note that physical branches operate from 8am to 5pm, from Mondays to Fridays.
- When your application is approved, you will receive an email from PERKESO with your username and temporary password.
- Log in to the PERKESO Assist Portal with your given username and temporary password. Then, change your password to a new one for security purposes.
- Remember your username and new password as you will be using this for future monthly payments.
iPERKESO and PERKESO Assist Portal – what’s the difference?
Just recently, PERKESO has announced to cease iPERKESO for monthly SOCSO and EIS submission. This was effective January 1, 2020.
All monthly SOCSO and EIS submissions should now be done through the PERKESO Assist Portal.
*Skim Keselamatan Social Pekerjaan Sendiri (SKSPS) for taxi drivers and e-hailing will still be eligible for payment via the iPERKESO website.
Is there a deadline for EIS payments?
Yes. Payment of EIS contributions must not be later than 15th of the following month. Interest on late payment of contributions will be imposed at a rate of 6% per annum for each day of contributions not paid within the stipulated period.
I’m not interested in using a payroll software. Is there a free tool I can use to automatically calculate EIS contributions?
Yes! Thousands of Malaysians use our free Online Salary Calculator (Malaysia) that also calculates EIS, EPF, SOCSO, PCB (MTD). Feel free to bookmark the page as a reference when you’re calculating your employees’ wages.
I’m an employee and I got laid off. How can my previous EIS contributions help me?
Our answer to that question is in the next and final article (Part 3). Read on to find out more! 🙂