Kemaman is a district in the state of Terengganu in Malaysia. With the town of Chukai serving as the administrative seat of the district. Know for its large surface area, the Kemaman District is perfect for new and returning business owners to set up their companies.
As an employer in Malaysia, you are probably familiar with the term “PERKESO”. PERKESO, which is short for Pertubuhan Keselamatan Sosial, or SOCSO (Social Security Organisation) as it is in English, is a social security program put forward by the Ministry of Labour in 1971 as a measure to ensure that all employees in Malaysia are provided social security for their welfare. This program is operated as a fund and is contributed towards by both the employer as well as the employee and it is mandated by law for the employer to register all employees towards it. Contributions towards the fund are calculated on a monthly basis and are based on the following:
- The employee’s base salary
- Overtime bonuses
- All paid leave
- All allowances
- Any service charges they are entitled to
It is to be noted that PERKESO only applies to your employees who are below the age of 60. In which case the rate of contribution is 1.75% of the employee’s total salary.
In addition, 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:
|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|
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 the location of your business is mainly conducted in Kemaman, the official address of the Kemaman PERKESO office is given below:
Jalan CU 12,
Kampung Pengkalan Pandan,
In conclusion, 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 panic. Instead, simply contact us at S & F Consulting, where, as official agents in Malaysia, we can register for this fund on your behalf. So, you may sit back and enjoy a stress-free journey. In the meantime, if you have any doubts or queries, do feel free to direct them to our friendly customer service support staff who will be more than happy to provide you with answers and advice.
Frequently Asked Questions
Is it compulsory to register for SOCSO?
Yes, it is required by the law.
What will happen if I don’t register for SOCSO?
Employers who fail to register for SOCSO 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 SOCSO office, in order to remove the employee from the fund list.
Read Also: PERKESO Registration in Kuching