Hiring Your First Employee: EPF, SOCSO & EIS Explained
Hiring your first employee in Malaysia means more than a salary — you take on three statutory contributions. Here's what each costs and how to set it up.
1. EPF (KWSP) — retirement savings
The big one. For a typical employee under 60:
Register as an employer with KWSP and remit by the 15th of the following month.
2. SOCSO (PERKESO) — injury & invalidity
Covers work injuries and invalidity:
The contribution wage ceiling is RM6,000 per month (raised from RM4,000 in late 2024).
3. EIS — Employment Insurance System
Helps workers who lose their job:
Same RM6,000 wage ceiling. SOCSO and EIS are filed together via the ASSIST portal.
What you must do as a new employer
Quick cost example
On a RM3,000 salary, expect roughly RM390 EPF + about RM53 SOCSO + RM6 EIS in *employer* contributions on top of the wage — budget for it.
Looking for funding?
Browse verified Malaysian SME grants and check what you may qualify for.
Sources:KWSP (EPF)PERKESO (SOCSO)
General information only — schemes, rules and requirements change. Always follow the official source(s) and confirm the latest details before acting.
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