Rawang is a town in Malaysia that lies in the state of Selangor. Known for its quiet culture and historic roots, Rawang may seem like a small town with no opportunities, but it is in fact the opposite. With its up and coming state of economics, Rawang is the perfect place for you to establish a long-lasting legacy for your business.
As an employer in Rawang, Malaysia you are probably familiar with the term “PERKESO”. PERKESO, which is short for Pertubuhan Keselamatan Sosial, or SOSCO (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 Rawang 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|
Another article for SOCSO contributor in Malaysia: Table for SOCSO Contribution 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 located in Rawang, the closest PERKESO office to you is the following:
Jalan Setia Rawang 1,
Taman Setia Rawang,
48000 Rawang, Selangor, Malaysia
In conclusion, PERKESO in Rawang 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 a good business consultant in Rawang, where, as official agents 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 recommended authority of this area who will be more than happy to provide you with answers and advice.
Frequently Asked Questions
Is it compulsory to register for SOSCO?
Yes, it is required by the law.
What will happen if I don’t register for SOSCO in Rawang?
Employers who fail to register for SOSCO 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 SOSCO office, in order to remove the employee from the fund list.