Every Malaysian employer must deduct and remit statutory contributions each month. Getting the rates and deadlines right protects you from penalties and back-pay. Here is what applies in 2026.

EPF (KWSP)

The EPF employee contribution is 11%. Employers contribute 13% for employees earning RM5,000 or less per month, and 12% for those earning above RM5,000 — the threshold is assessed monthly. Non-Malaysian employees registered as members from 1 August 1998 contribute 2%, with a 2% employer share, mandatory since the October 2025 wage month.

SOCSO (PERKESO) and EIS

SOCSO is a 1.75% employer share and a 0.5% employee share for employees under 60, applied through a fixed contribution table, with the wage ceiling raised to RM6,000 effective 1 October 2024. EIS adds 0.2% from the employer and 0.2% from the employee (0.4% in total) up to the same RM6,000 ceiling.

PCB (MTD)

PCB (Potongan Cukai Bulanan), or Monthly Tax Deduction, is the income tax employers deduct from salaries and remit to LHDN. The amount depends on marital status, children, reliefs and zakat, calculated using current LHDN tables — which is why a generic calculator can only estimate it.

HRD Corp (HRDF)

HRD Corp registration is mandatory for employers with 10 or more Malaysian employees in covered industries, at a levy of 1% of monthly wages and fixed allowances. Employers with 5 to 9 Malaysian employees fall into the optional category and pay 0.5% if they choose to register.

The deadlines that matter

  • EPF, SOCSO and EIS contributions: by the 15th of the following month.
  • EA forms (Borang EA): to all employees by 28 February of the following year.
  • Wages: paid within 7 days of the end of the wage period (Employment Act).

Missing any of these carries real cost. Outsourcing payroll puts every calculation and submission on a fixed schedule, so the 15th stops being a monthly risk.