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Can wages be not subject to SOCSO?

SOCSO (Social Security Organisation), otherwise known as PERKESO (Pertubuhan Keselamatan Sosial), provides social security protections to all employees or workers in Malaysia. Employers must make their SOCSO payments to the SOCSO offices no later than the last day of the following month. 

All renumeration or wages stated below and payable to staff/workers are subject to SOCSO contributions:

1. Salary / Wages (full/part time, monthly/hourly)
2. Overtime payments
3. Commission and service charge
4. Payments for leave (annual, sick and maternity leave, rest day, public holidays)
5. Allowances (incentives, shift, food, cost of living, housing etc)

Wages NOT subject to SOCSO contribution:

The following wages or remuneration payable to staff/workers are NOT subject to SOCSO contribution:

1. Payments by employer to any pension or provident fund for employees
2. Mileage claims
3. Gratuity payment(s) for dismissal or retrenchments
4. Annual bonus

On WhyzeHR, you can select which Pay Items are NOT subject to SOCSO contribution at Pay Item Setup. 

More information on SOCSO can also be found on https://www.perkeso.gov.my/en/24-social-security-protection/employer-and-employee-eligibility.html.