BlackRevo blog · Employee rights
EPF, SOCSO and EIS contribution rates 2026: what comes off your first pay slip in Malaysia
Yap Pat Yih, Co-founder and General Manager · 2026-10-15 · 8 min read
EPF 11%, SOCSO, EIS and the new LINDUNG 24 Jam: what comes off your first pay slip in Malaysia, worked out at RM2,000, RM2,500 and RM4,000, what your employer pays on top, and what Budget 2027 changes.
The EPF, SOCSO and EIS contribution rates for 2026 take four amounts from your salary before it reaches your account in Malaysia: EPF at 11%, SOCSO at about 0.5%, EIS at about 0.2%, and, since June 2026, LINDUNG 24 Jam at about 0.75%, which a Malaysian employee may opt out of. PCB, the monthly tax deduction, appears only once your pay is high enough. Your employer pays its own EPF, SOCSO and EIS on top, so none of that comes out of your salary. On RM2,500 a month, a local employee under 60 takes home RM2,189.50. Below, the four lines one by one, a worked pay slip at three salaries, and what Budget 2027 changes, all from the official tables.
Key points
- EPF: 11% of your wage from you; 13% from your employer up to RM5,000 a month, 12% above it.
- SOCSO (Act 4): about 0.5% from you and 1.75% from your employer, on wages up to RM6,000 a month.
- EIS (Act 800): about 0.2% each, on wages up to RM6,000.
- LINDUNG 24 Jam: about 0.75% from you only, from the June 2026 wages; a Malaysian employee may opt out since 8 July 2026.
- Take-home for a local employee under 60, single, with no other income: RM1,751.70 on RM2,000, RM2,189.50 on RM2,500, RM3,486.00 on RM4,000.
What are the EPF, SOCSO and EIS contribution rates in 2026?
EPF (KWSP). The Employees Provident Fund is your retirement savings. For a Malaysian or permanent resident under 60, you pay 11% of your monthly wage and your employer pays 13% if the wage is RM5,000 or less, or 12% above that, as set out on KWSP's contribution rate page under the Third Schedule of the EPF Act 1991. The schedule works in wage bands rather than exact percentages, so a wage between two band limits is charged as if it were the higher limit, and each share is rounded up to the next ringgit. Both shares go into your EPF account; your employer must pay them in by the 15th of the following month.
SOCSO (PERKESO). The Employees' Social Security Act 1969 (Act 4) covers injury at work and invalidity. Under 60, you pay about 0.5% and your employer about 1.75%, from PERKESO's Act 4 contribution table, which also works in bands and stops at a wage of RM6,000. On RM2,500, your share is RM12.25.
EIS. The Employment Insurance System (Act 800) pays you for a time if you lose your job. You and your employer each pay about 0.2%, from PERKESO's Act 800 table, up to the same RM6,000 ceiling. On RM2,500, that is RM4.90 each.
LINDUNG 24 Jam. This is the newest line. It covers accidents outside working hours, on the way home or at the weekend, which the employment injury scheme does not. According to PERKESO's LINDUNG 24 Jam FAQ, it started on 1 June 2026 under the Employees' Social Security (Amendment) Act 2026, the employee pays all of it and the employer nothing, and the rate is 0.75% until 31 May 2028, 1.00% to 31 May 2031, then 1.25%. Since a Cabinet decision on 8 July 2026, it is compulsory for foreign workers and voluntary for Malaysian employees: you are in by default, and you opt out through PERKESO's Portal LINDUNG Faedah. June 2026 contributions were compulsory for everyone and are not refunded. On RM2,500, it is RM18.35 a month.
PCB (MTD). The monthly tax deduction is an advance on your income tax, worked out by LHDN's formula from your pay, your EPF and the reliefs you declare. At RM2,000 and RM2,500 it is zero for a single person with no other income, because the personal relief, the EPF relief and the RM400 rebate cover the year's tax. At RM4,000 it is about RM16.70 a month. If your pay slip shows more than you expect, the reliefs you declare to your employer on Form TP1 can bring it down.
How much comes off RM2,000, RM2,500 and RM4,000?
For a local employee under 60, single, with no other income and no allowances, in a month after June 2026:
- RM2,000: EPF RM220.00, SOCSO RM9.75, LINDUNG 24 Jam RM14.65, EIS RM3.90, PCB RM0.00. Take-home RM1,751.70, or RM1,766.35 if you opted out of LINDUNG 24 Jam.
- RM2,500: EPF RM275.00, SOCSO RM12.25, LINDUNG 24 Jam RM18.35, EIS RM4.90, PCB RM0.00. Take-home RM2,189.50, or RM2,207.85 if you opted out.
- RM4,000: EPF RM440.00, SOCSO RM19.75, LINDUNG 24 Jam RM29.65, EIS RM7.90, PCB about RM16.70. Take-home RM3,486.00, or RM3,515.65 if you opted out.
Two things make a real pay slip differ from these figures. Overtime and pay for leave and rest days count as wages for SOCSO and LINDUNG 24 Jam, while travelling allowances and annual bonuses do not, as PERKESO's FAQ lists them. And PCB changes with your reliefs, any bonus, and the month you join. Our overtime calculation guide shows how overtime pay is worked out.
Is the employer's EPF 13% or 12%, and what else does the employer pay?
13% on wages up to RM5,000 and 12% above, for an employee under 60. None of the employer's share comes out of your salary. On the same three wages, the employer pays:
- RM2,000: EPF RM260.00, SOCSO RM34.15, EIS RM3.90, so the job costs RM2,298.05 a month.
- RM2,500: EPF RM325.00, SOCSO RM42.85, EIS RM4.90, so RM2,872.75 a month.
- RM4,000: EPF RM520.00, SOCSO RM69.15, EIS RM7.90, so RM4,597.05 a month.
That gap between what you are paid and what the job costs is worth knowing when you compare offers. It is also why the minimum wage rise to RM2,000 from June 2027 costs an employer RM344.90 a month per worker, not RM300, as our minimum wage 2027 post works out.
How do I check my EPF and SOCSO contributions?
- Find your wage band in each table and compare the amounts line by line. A difference of a few sen usually means a different band; a difference of ringgit means something to ask about.
- Check that the deductions reached the right place. EPF contributions show in your EPF account, through the KWSP app or i-Akaun, once your employer has paid them, which is due by the 15th of the next month.
- Look for LINDUNG 24 Jam. It may sit inside the SOCSO line or on a line of its own. If you opted out, it should stop from the month your opt-out applies.
- Check what counts as basic salary and what counts as allowance. The minimum wage is measured on basic salary, and increments and bonuses are usually calculated on basic too. Our fresh graduate salary guide explains how to read an offer.
Did Budget 2027 change the contribution rates?
We read the Budget 2027 speech for EPF, SOCSO and EIS. No change to the employee or employer contribution rates was announced. Three measures touch these lines:
- An additional tax relief of up to RM150 for voluntary contributions to LINDUNG 24 Jam and Lindung Kendiri (paragraph 34).
- Every Malaysian citizen will be registered as an EPF member automatically at 18, so retirement savings start earlier (paragraph 35).
- The minimum wage rises from RM1,700 to RM2,000 from June 2027, with micro, small and medium businesses with sales under RM50 million exempted (paragraph 32). Every percentage above then applies to a higher wage.
What we do at BlackRevo
We hire fresh graduates and SPM leavers into real roles, and pay is decided with you, on what you can do and deliver. Whatever the figure, the four lines above are how to check your first pay slip with us, or anywhere else. The open roles are on our careers page.
Sources: KWSP, EPF contribution rates (Third Schedule, EPF Act 1991, effective for October 2025 wages); PERKESO, Act 4 contribution rates including LINDUNG 24 Jam, Act 800 contribution rates and the LINDUNG 24 Jam FAQ; LHDN, MTD computerised calculation specification for 2026, reliefs and rebates; Budget 2027 speech, paragraphs 32, 34 and 35 (Ministry of Finance, 9 October 2026).
Last checked: 13 October 2026. Figures are for a local employee under 60; foreign workers, employees aged 60 and over and part-time staff follow other parts of the tables.
FAQ
Is the employer contribution to EPF 12% or 13%?
13% if the employee's monthly wage is RM5,000 or less, and 12% above that, for a Malaysian or permanent resident under 60. The employee pays 11% either way, worked out on the wage band and rounded up to the next ringgit: on RM2,500, RM325.00 from the employer and RM275.00 from you.
What is the new SOCSO rate for 2026?
The SOCSO rates themselves did not change: about 0.5% from you and 1.75% from your employer under 60, on wages up to RM6,000 (RM12.25 and RM42.85 on RM2,500). What is new is LINDUNG 24 Jam, about 0.75% from the employee only, deducted with SOCSO since the June 2026 wages.
What is the EIS contribution rate?
About 0.2% from you and 0.2% from your employer, from PERKESO's Act 800 table, on wages up to RM6,000. On RM2,500 that is RM4.90 each.
What is LINDUNG 24 Jam on my pay slip?
A PERKESO scheme that covers accidents outside working hours, deducted since the June 2026 wages at about 0.75% of your wage, paid by you alone. Since 8 July 2026 it is voluntary for Malaysian employees, who are in by default and may opt out through the Portal LINDUNG Faedah, and compulsory for foreign workers.
Why is there no PCB on my pay slip?
Because the year's tax on your pay is covered by the personal relief, the EPF relief and the RM400 rebate. For a single person with no other income, that holds at RM2,000 and RM2,500 a month; at RM4,000 PCB is about RM16.70 a month.
How much is take-home pay on RM2,500 in Malaysia?
RM2,189.50 for a local employee under 60, single, with no other income, after EPF RM275.00, SOCSO RM12.25, LINDUNG 24 Jam RM18.35 and EIS RM4.90. If you opted out of LINDUNG 24 Jam, RM2,207.85.
Yap Pat Yih: Yap Pat Yih is Co-founder and General Manager of BlackRevo and looks after the team, the hiring and the HR system they run on.
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