Johor is one of the major states in Malaysia and it is known most commonly for bordering and providing a link to Singapore as well as Indonesia. This makes it an ideal location for business or company registration as it provides an invaluable location for transport. Moreover, as expected of its strategic placement, Johor sees much traffic in terms of consumers from all over the world.
As an employer or employee in Malaysia, you are probably familiar with the term PERKESO, or, in its full form, Pertubuhan Keselamatan Sosial, is a social security program run by the Malaysian government’s Ministry of Finance that acts as a means of protection for all workers in Malaysia. This program creates a guarantee that all workers for employees in Malaysia are granted social security protection. As a business owner or a company owner in Malaysia, you are lawfully required, to register for PERKESO and make monthly contributions towards the fund.
As an employer, you will be required to pay the PERKESO fund based on the culmination of the wages listed below:
- The employee’s base salary
- Overtime bonuses
- All paid leave
- All allowances
- Any service charges they are entitled to
It is also best to note that PERKESO only applies to your employees who are still under the age of 60. In which case the rate of contribution is 1.75% of the employee’s total salary.
Moreover, the employees themselves are also liable to contributing 0.5% of their salary towards the fund.
Below is a small table as an example to illustrate how PERKESO is calculated in Johor:
|Total Monthly Wages||Employer Contribution (RM)||Employee Contribution (RM)||Total Contribution (RM)|
|Wage below RM 30||0.40||0.10||0.50|
|Wages between RM 30 and RM 50||0.70||0.20||0.90|
|Wages between RM 50 and RM 70||1.10||0.30||1.40|
|Wages between RM 70 and RM 100||1.50||0.40||1.90|
|Wages between RM 100 and RM 140||2.10||0.60||2.70|
|Wages between RM 140 and RM 200||2.95||0.85||3.80|
|Wages between RM 200 and RM 300||4.35||1.25||5.60|
|Wages between RM 300 and RM 400||6.15||1.75||7.90|
|Wages between RM 400 and RM 500||7.85||2.25||10.10|
|Wages between RM 500 and RM 600||9.65||2.75||12.40|
Note: Look at SOCSO Contribution chart with rates
To formally make an application, you will be required to fill in the following forms
- Employer’s registration form (Form 1)
- Employee’s registration form (Form 2)
Along with the submission of form 1, you will also need to submit two copies of the following, as applicable:
- Forms 9 & 49 (Limited Liability company)
- Forms A & D (Sole proprietor/partnership company)
Then you may proceed to make the payments needed and the successful applicant will be issued an Employer’s Code Number.
As you are based in Johor, or are interesting in starting your work in Johor bahru, it is advisable to submit all applications to the PERKESO head office in Johor.
The address for which is provided below:
SOCSO Johor State
Wisma PERKESO, No. 26, Jalan Susur 5
Jalan Tun Abdul Razak, Larkin
80200 Johor Bahru, Johor
|Tel Fax:||07 – 225 6600 / 6601 : 07 – 223 3180 / 07 – 223 3190 (Benefit)|
To conclude, PERKESO is a program run under the Ministry of Human Rights that ensures that social security protection is provided to all employees. This program is funded by the employer and is a mandatory contribution. If you’re having any difficulties with the application or registration process, don’t worry! Simply contact PERKESO Johor Bahru registration office.
Frequently Asked Questions
Is it compulsory to register for PERKESO?
Yes, it is required by the law.
What will happen if I don’t register for PERKESO?
Employers who fail to register for PERKESO are subject to the following punishment:
- A fine of RM 10000 OR
- Imprisonment of up to two years
What happens if an employee no longer works for me?
If you have dismissed an employee or your employee has resigned, the employer has to clarify with the PERKESO office, in order to remove the employee from the fund list.