Malaysia: Perkeso Enforces New Salary Ceiling for Contributions Effective October 1, 2024

The Social Security Organisation (Perkeso) will enforce a new salary ceiling for contribution purposes, raising it from RM5,000 to RM6,000, effective October 1, 2024.

This enforcement follows amendments to the Workers’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800).

The increase in the salary ceiling will provide enhanced benefits to employees earning more than RM5,000, with benefit payment rates rising by up to 20.2%.

Starting from October 1, 2024, the revised contribution amounts for employees earning more than RM5,000 and RM6,000 per month will be applied as outlined in the Third Schedule of Act 4 and the Second Schedule of Act 800.

For more information on the contribution rates, please refer to the table at https://www.perkeso.gov.my/en/rate-of-contribution.html.