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

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.

Create a Free Account

Privacy policy

More for Workers & Employers in Malaysia

• Understanding Tax Residency in Malaysia
• Work permit guides
• Sending money home

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

Tired of Doing Payroll in Excel? There's a Better Way - Nomads Payroll

Made for Malaysian Businesses

Tired of Doing Payroll in Excel?
There's a Better Way.

Meet the HR & Payroll system built specifically for Malaysian companies — EPF, SOCSO, EIS, and PCB handled automatically, every month, without spreadsheets.

Start Free Today

If you're still running payroll manually — copying salary figures into Excel, calculating EPF contributions by hand, then emailing payslips one by one — you already know how painful it is.

Every month it's the same story: hours of work, easy to make mistakes, and a constant worry about getting the statutory submissions right. We built our HR & Payroll system to solve exactly this — for startups, SMEs, retail operations, and manufacturing companies across Malaysia.

Sound familiar?

You spend half a day every month manually calculating EPF, SOCSO, EIS, and PCB for each employee

A new employee joins mid-month and you're not sure how to prorate their salary correctly under the Employment Act

Your employees keep asking for their payslips and you have to dig through old files to find them

You're never 100% sure your PCB calculation is right, and the LHDN penalty risk keeps you up at night

Tracking leave, attendance, loans, and overtime across multiple spreadsheets is a mess

Need the latest rates? See EPF, SOCSO, EIS & PCB Rates 2026, with a salary example for local and foreign workers.

If any of those hit close to home, you're in the right place. Let us show you how we fix each one.

---

Everything you need, in one place

Automatic Payroll Calculation

Run payroll in minutes. The system calculates basic salary, allowances, overtime, deductions, and all statutory contributions automatically for every employee.

Professional Payslips

Generate and email payslips as PDF to every employee in one click. Employees can also download their own payslips from the self-service portal anytime.

Leave Management

Employees apply for leave online. Managers approve or reject from the dashboard. Annual leave, sick leave, emergency leave — all tracked automatically.

Attendance Tracking

Track daily attendance with QR code check-in. Employees scan a QR code on their phone — no hardware needed. OT hours feed directly into payroll.

Employee Loans

Manage staff salary advances and loans with automatic monthly deduction scheduling. Full loan history, balance tracking, and approval workflow included.

Payroll Reports

Generate payroll summary, bank payment listings, cost analysis, and statutory contribution reports — all exportable to Excel or PDF.

---

100% Malaysian Statutory Compliance

This is where most payroll systems fall short. Ours is built from the ground up for Malaysian law.

EPF (KWSP) — correct rates for all age groups including 60+ SOCSO (PERKESO) — Borang 8A auto-generated EIS (SIP) — calculated and reported automatically PCB / MTD — full LHDN formula with TP1 reliefs and children Form EA — generated per employee for annual tax filing Form E — company annual return, ready to submit CP39 — PCB text file for LHDN e-filing upload EPF TXT file — bulk upload format for i-Akaun

When statutory rates change — like the EPF rate update for employees aged 60 and above — we update the system so you don't have to worry about it.

---

How it works

Getting started takes less than 10 minutes. Here's the flow:

1

Register your company

Sign up with your company name and email. Your account is reviewed and approved within one business day.

2

Set up your payroll policy and work schedules

Choose your salary proration method (EA 1955 standard: ÷26), define your work schedules (5-day, 5.5-day, 6-day), and configure public holidays for your state.

3

Add your employees

Enter each employee's details — salary, EPF number, IC number, bank account, PCB reliefs, work schedule. Or invite them to fill in their own profile.

4

Run payroll every month

Click Run Payroll, select the month, review the auto-calculated figures, and finalise. Payslips are ready to email or download in seconds.

5

Download statutory reports

Generate your EPF, SOCSO, EIS, and PCB contribution files. Download the bulk upload TXT files and submit directly to the respective portals.

---

How we compare to doing it manually

Task	Excel / Manual	Our System
EPF / SOCSO / EIS calculation	Manual lookup + formula	Automatic
PCB / MTD tax deduction	Error-prone manual calc	Full LHDN formula
Mid-month joiner proration	Calculated manually each time	Automatic by joining date
Payslip generation	Design + print individually	PDF in one click
EPF / SOCSO submission file	Type manually into portal	Download ready-to-upload TXT
Leave tracking	Separate spreadsheet or paper	Built-in with approval workflow
Employee self-service	Not available	Portal for payslips + leave + attendance
Attendance + OT tracking	Manual timesheet	QR check-in → auto OT calculation
Form EA / Form E	Hours of manual data entry	Generated from payroll data

"Before this, I was spending almost a full day every month just on payroll — calculating EPF, checking SOCSO tables, printing payslips. Now it takes me maybe 20 minutes. I run payroll, review the numbers, click finalise, and send. Done."

— HR Manager, manufacturing company, Selangor

---

Who is this for?

Small Businesses

5–50 employees. You need payroll done right but can't afford a full HR department. This is built for you.

Startups

Growing fast and hiring quickly. Get a proper payroll system in place before the spreadsheet chaos starts.

Growing SMEs

50–200 employees across multiple departments. Multi-department management, roles, locations, and shift schedules all supported.

Whether you're in retail, F&B, manufacturing, services, or tech — if you have employees in Malaysia and you pay them a salary, this system works for you.

---

A few things worth mentioning

• Cloud-based. Nothing to install. Access from any browser, on any device, from anywhere. Your data is always backed up.
• Multi-user access. Invite your HR team, finance staff, and managers with different permission levels. Everyone sees only what they should.
• Employee self-service portal. Employees log in to view their own payslips, apply for leave, and check their attendance. Fewer questions to HR every month.
• QR attendance. No clocking machine needed. Print a QR code, stick it on the wall, and employees check in with their phone. OT is calculated automatically.
• Always up to date with Malaysian law. EPF rate changes, SOCSO updates, LHDN PCB formula revisions — we update the system so you don't have to.
• Your data, your company. Every company's data is completely isolated. Your employee and payroll data is never shared or visible to other companies on the platform.

Ready to stop doing payroll the hard way?

Join Malaysian businesses that have already switched to smarter, faster payroll. Sign up takes less than 2 minutes.

Create Your Free Account

No credit card required  ·  Setup in under 10 minutes  ·  Malaysian statutory compliant

Ishtiaq Ahmad on August 01, 2026