Which payment is subjected to SOCSO

Payments Subject to SOCSO Contribution

Contribution "wage" refers to the monetary compensation paid by an employer to an employee.


This include:

- Basic Salaries
- Overtime payments
- Commissions
- Payments in respect of leave
- Service charges


Payments Exempted From SOCSO Contribution

The following payments are not considered "wage" and are not included in the monthly deduction calculation.


- Contributions payable by the employer to the pension or  fund 
- Travel allowance 
- Allowance paid at the time of employee retirement or retirement  
- Amount paid to cover costs incurred by employees in the course of their duties 
- Annual bonus 
- Gifts (eg cash payments for holidays such as Hari Raya and Christmas)