Spicy Blogging

Updated November 2026

EPF, SOCSO, EIS & PCB Deductions in Malaysia 2026

The 2026 contribution rates, a worked salary example for local and foreign workers, payment deadlines, and a free payroll app that calculates everything for employers.

Try the Free Payroll App

2026 Contribution Rates at a Glance

Contribution	Employee pays	Employer pays	Notes
EPF (KWSP) Malaysian, under 60	11%	13% (wages up to RM5,000) 12% (above RM5,000)	Lower rates from age 60
EPF (KWSP) Foreign worker	2%	2%	Mandatory for wages from October 2025
SOCSO (PERKESO) Malaysian & PR, under 60	0.5%	1.75%	Wage ceiling RM6,000
SOCSO (PERKESO) Foreign worker	None	1.25%	Employment injury cover only
EIS (SIP)	0.2%	0.2%	Malaysians & PR aged 18–60, ceiling RM6,000. Not for foreign workers
PCB / MTD	Depends on salary & reliefs	None	Monthly income tax deducted for LHDN

EPF, SOCSO and EIS are worked out from official wage-band tables, so the exact ringgit amount can differ slightly from a plain percentage.

Example: Deductions on a RM3,000 Salary

Malaysian employee (under 60)

Basic salary	RM3,000.00
EPF 11%	− RM330.00
SOCSO	− RM14.75
EIS	− RM5.90
Take-home (before PCB)	RM2,649.35

The employer also pays EPF RM390, SOCSO RM51.65 and EIS RM5.90.

Foreign worker

Basic salary	RM3,000.00
EPF 2%	− RM60.00
SOCSO	RM0.00
EIS	Not covered
Take-home (before PCB)	RM2,940.00

The employer also pays EPF RM60 and SOCSO employment injury of about RM36.90.

Foreign Workers: What Comes Out of Your Salary?

EPF is now deducted. Since wages for October 2025, foreign workers pay 2% and the employer adds 2%. You can check your balance in the KWSP i-Akaun app.
SOCSO is paid by your employer only. It covers accidents at work and occupational diseases. Nothing should be deducted from your pay for it.
No EIS. The Employment Insurance System covers Malaysians and permanent residents only.
PCB (tax) depends on your tax residency. If you stay in Malaysia less than 182 days in a year, you may be taxed as a non-resident at a flat rate. Read Understanding Tax Residency in Malaysia.

Payment & Filing Deadlines for Employers

What	Form	Deadline
EPF	Borang A	By the 15th of the following month
SOCSO & EIS	Borang 8A	By the 15th of the following month (paid together)
PCB / MTD	CP39 (e-PCB)	By the 15th of the following month
Yearly income statement	Form EA	Given to every employee by the end of February
Employer annual return	Form E	By 31 March

Digital Nomads Payroll: Let the System Do It

We built Digital Nomads Payroll for Malaysian employers who are tired of working out EPF, SOCSO, EIS and PCB in Excel every month. It is a web app, so it works on any computer or phone with no installation, and it is free to start with no card required.

Automatic payroll

Salary, overtime, allowances, claims and all statutory contributions calculated for every employee, including staff aged 60 and above.

Statutory forms

Borang A, Borang 8A, CP39, Form EA and Form E generated for you, plus bulk upload files for the EPF and LHDN portals.

Leave & attendance

Online leave requests and approvals, automatic leave balances, and QR code attendance with overtime feeding straight into payroll.

Payslips, loans & claims

PDF payslips emailed in one click, a self-service portal for staff, and staff loans with automatic monthly deductions.

How to Get Started

Step 1: Create your company account

Go to payroll.digitalnomadspk.com and sign up with your company details and statutory registration numbers.

Step 2: Add your employees

Enter each employee's salary, EPF and SOCSO numbers, bank details and PCB reliefs, or invite staff to fill in their own profile.

Step 3: Run payroll

Review the calculated figures, approve, and download payslips and statutory files ready to submit.

For a full tour of the features, read Tired of Doing Payroll in Excel? There's a Better Way.

Frequently Asked Questions

Yes. EPF is mandatory for foreign workers for wages from October 2025, at 2% from the worker and 2% from the employer.

No. For foreign workers, only the employer pays SOCSO, at 1.25% for the Employment Injury Scheme. Nothing should be deducted from the worker's pay for SOCSO.

Since October 2024, SOCSO and EIS are calculated on wages up to RM6,000 a month. Earnings above that are not counted.

All four are due by the 15th of the following month. For example, contributions for November salaries must be paid by 15 December. Late payment can lead to penalties.

You can sign up and start running payroll free, with no credit card required. Visit payroll.digitalnomadspk.com for current details.

Data is encrypted in transit and backed up daily. Access is role-based, so only users such as HR managers or finance staff can see salary details, and logins and key changes are logged.

Stop calculating payroll by hand

EPF, SOCSO, EIS and PCB done automatically. Made by Digital Nomads PK, the team behind Spicy Blogging.

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More for Workers & Employers in Malaysia

Official Sources

KWSP / EPF (contribution rates and Third Schedule)
PERKESO / SOCSO (SOCSO and EIS contribution tables)
LHDN / Inland Revenue Board (PCB, Form EA and Form E)

Ishtiaq Ahmad on November 09, 2026

EPF, SOCSO, EIS & PCB Rates 2026: Salary Deductions in Malaysia (Local & Foreign Workers)