Selangor is a state in West Malaysia and is the state that surrounds the country’s capital, Kuala Lumpur. Known for having several cities within its state boundaries, Selangor is considered Malaysia’s busiest state. As such, Selangor is currently the state that receives the most traffic in terms of visitors and tourists. Thus, ensuring that no matter what time or day it is, your business will always be booming.
Currently, the cities and townships that fall under the State Jurisdiction in Selangor are the following:
- Bandar Baru Bangi
- Bandar Puncak Alam
- Batang Kali
- Batu Arang
- Batu Caves
- Bestari Jaya
- Bukit Rotan
- Hulu Langat
- Kuala Kubu Baru
- Kuala Selangor
- Pelabuhan Klang
- Petaling Jaya
- Pulau Carey
- Pulau Indah
- Pulau Ketam
- Sabak Bernam
- Seri Kembangan
- Shah Alam
- Shah Alam
- Subang Jaya
- Sungai Ayer Tawar
- Sungai Besar
- Sungai Buloh
- Sungai Pelek
- Tanjong Karang
- Tanjong Sepat
- Tanjung Sepat
- Telok Panglima Garang
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 Organization) 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 your place of business is in Selangor, you may submit all your documents to any PERKESO office in the state, however, we have provided the address for the PERKESO Head Office in Selangor, below:
Wisma Perkeso Petaling Jaya
141, Jalan Selangor,
46990 Petaling Jaya,
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.
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