SOCSO and EIS Malaysia: Complete Guide to Your Benefits and How to Claim

Most Malaysian employees have been paying into SOCSO and EIS every month since their first payslip. Ask them what they're actually covered for, and most can't answer. Ask them how to make a claim, and almost none can.

SOCSO — the Social Security Organisation, now officially called PERKESO (Pertubuhan Keselamatan Sosial) — covers approximately 7 million private-sector workers in Malaysia. EIS (the Employment Insurance System) sits alongside it, specifically covering income replacement if you lose your job through retrenchment. Together, they form the bedrock of Malaysia's social safety net for employees.

This guide tells you exactly what you're covered for, what your contributions are, and what to do when you actually need to use these schemes.

SOCSO vs EIS — What's the Difference?#

They appear on the same payslip line, but they are separate schemes with different purposes.

SOCSO (Employment Injury Scheme + Invalidity Scheme)

SOCSO covers two categories of risk:

1. Employment Injury Scheme — Covers you if you are injured at work, during your commute to or from work, or develop an occupational disease linked to your job. Think factory floor accidents, chemical exposure, construction site falls.

2. Invalidity Scheme — Covers you if you become permanently disabled and unable to work, from any cause — not just work-related. A car accident on a weekend, a stroke, severe mental illness. If the condition prevents you from earning a living, the Invalidity Scheme applies.

EIS (Employment Insurance System)

EIS was introduced in 2018 under the Employment Insurance System Act 2017. It has one specific purpose: replacing a portion of your income if you lose your job through retrenchment, redundancy, or employer closure. It also funds retraining and job placement services through SPA (Skills & Placement Assistance).

The key difference: SOCSO protects against injury and disability while you are employed. EIS protects against the loss of employment itself.

Who Is Covered — and Who Is Not#

Covered by both SOCSO and EIS#

• Private-sector employees earning wages under a contract of service
• Domestic workers (SOCSO only — see below for EIS)
• Apprentices and trainees under a contract

Covered by SOCSO only (not EIS)#

• Domestic workers (e.g. housekeepers, gardeners employed at a private residence) — mandatory SOCSO coverage since 2021 but exempt from EIS
• Employees who have reached age 57 with no prior SOCSO contributions — employer still pays the Employment Injury Scheme portion only

NOT covered by either scheme#

• Government servants on the pensionable scheme — covered by PDRM/ATM pension or KWAP instead
• Employees aged 60 and above — exempt from EIS contributions; SOCSO Employment Injury Scheme still applies
• Employees earning above the contribution ceiling who opt out (rare — employers generally cannot opt out of covering employees)
• Foreign workers — subject to separate coverage under the Foreign Workers Compensation Scheme (FWCS), not SOCSO

Voluntary SOCSO Coverage#

If you are self-employed, you can opt into SOCSO voluntarily under the Self-Employment Social Security Scheme (SKSPS). As of 2026, this covers registered self-employed individuals in certain gazetted sectors (e-hailing, food delivery, tourism, retail, etc.) for Employment Injury only. Invalidity Scheme coverage is not available under voluntary enrolment. The contribution rate is 1.25% of declared income, paid entirely by the insured person.

Contribution Rates — What You and Your Employer Pay#

SOCSO Contribution Rates#

SOCSO has two contribution categories based on age:

First Category — Employees below age 60 who have never received an Invalidity Pension

| Contributor | Rate | What it Funds | |---|---|---| | Employee | 0.5% of monthly wages | Employment Injury + Invalidity Schemes | | Employer | 1.75% of monthly wages | Employment Injury + Invalidity Schemes |

Second Category — Employees aged 60 and above, or employees already receiving an Invalidity Pension

| Contributor | Rate | What it Funds | |---|---|---| | Employee | Nil | — | | Employer | 1.25% of monthly wages | Employment Injury Scheme only |

SOCSO contribution ceiling: RM5,000/month. On a RM5,000 salary, the employee pays RM25/month and the employer pays RM87.50/month. Employees earning RM8,000 still pay RM25/month (contributions are capped, not salary).

EIS Contribution Rates#

| Contributor | Rate | |---|---| | Employee | 0.2% of monthly wages | | Employer | 0.2% of monthly wages |

EIS contribution ceiling: RM4,000/month. On a RM4,000 salary, both employee and employer each pay RM8/month (RM16 total). On a RM10,000 salary, each still pays RM8/month.

How to Check Your Contributions#

1. Go to assist.perkeso.gov.my
2. Log in with your MyKad number and register if it's your first visit
3. Under "Contribution History", you can see every month your employer has paid in
4. If there are gaps — months where your employer should have contributed but didn't — this is a compliance issue. You can report it to PERKESO directly.

If your employer has not registered you or has been deducting contributions without remitting them, you can lodge a complaint via the PERKESO Assist portal or visit your nearest PERKESO office.

What SOCSO Covers — Benefits Summary#

| Benefit | Trigger | Amount / Formula | |---|---|---| | Temporary Disablement Benefit | Work injury causing inability to work for > 4 days | 80% of daily wage (based on contribution record), paid for duration of certified medical leave | | Permanent Disablement Benefit | Work injury causing permanent disability | Lump sum or monthly pension — calculated as percentage of full disablement pension based on assessed disability percentage (0–100%) | | Invalidity Pension | Permanent invalidity from any cause preventing gainful employment | Monthly pension — formula based on contribution period and assumed wages. Minimum RM475/month (as of 2026) | | Invalidity Grant | Invalidity with insufficient contribution period for full pension | Lump sum payment | | Dependants' Benefit | Death from work injury | Monthly pension to eligible dependants (spouse, children, parents) | | Survivors' Pension | Death from invalidity-related cause | Monthly pension to eligible dependants | | Constant Attendance Allowance | 100% permanent disablement requiring full-time care | Additional 40% of pension | | Medical Benefit | Work injury or occupational disease treatment | Free treatment at PERKESO panel clinics and hospitals | | Rehabilitation Benefit | Physical rehabilitation post-injury | Treatment and appliances (prosthetics, wheelchairs) covered | | Funeral Benefit | Death from work injury or invalidity | RM2,000 lump sum to next-of-kin | | Education Benefit | For children of workers receiving Invalidity Pension | Scholarship for up to 4 children, from primary through tertiary | | Return to Work Programme | Reintegration post-injury | Vocational training and employer incentive grants |

A note on Temporary Disablement Benefit: The 80% wage replacement sounds generous — but the "daily wage" is calculated using your contribution record and a fixed wage schedule, not necessarily your actual salary. If you have been underpaid into SOCSO (common in smaller companies), your benefit may be lower than expected.

EIS — How to Claim If You've Been Retrenched#

EIS pays a sliding-scale income replacement benefit for up to 6 months after qualifying retrenchment. The payment rates are:

| Month | Replacement Rate | |---|---| | Month 1 | 80% of last insured wage | | Month 2 | 50% of last insured wage | | Month 3 | 45% of last insured wage | | Month 4 | 40% of last insured wage | | Month 5 | 35% of last insured wage | | Month 6 | 30% of last insured wage |

"Last insured wage" means the wage used for your most recent SOCSO/EIS contribution. If your contribution was capped (at RM4,000 ceiling), that is the figure used — not your actual RM8,000 salary.

Minimum eligibility: You must have at least 12 months of EIS contributions within the 24 months before the loss of employment.

Step-by-Step EIS Claim Process#

Step 1 — Gather your documents before anything else

You need:

• A copy of your retrenchment letter from your employer (this is mandatory — verbal retrenchment alone is not enough)
• Your latest payslip or offer letter showing your last salary
• Your MyKad (both sides)
• Your bank account details (savings account in your name for direct payment)

Step 2 — Submit within 60 days of retrenchment

EIS claims must be submitted within 60 days of your last employment date. Missing this window means you lose your entitlement. Do not delay.

Step 3 — Apply online via the PERKESO Assist Portal

1. Go to assist.perkeso.gov.my
2. Log in with your MyKad number
3. Click "EIS" → "Job Loss Benefits" → "New Application"
4. Fill in employment details, upload your retrenchment letter and supporting documents
5. Submit and note your application reference number

You can also apply in person at any PERKESO office — bring all original documents and photocopies.

Step 4 — Attend Career Services if required

PERKESO may require you to register with the SPA (Skills and Placement Assistance) programme. This involves a career assessment session and access to PERKESO's job placement portal. It is free and provides access to training subsidies under the SPA programmes.

Step 5 — Receive payments

Approved EIS benefits are paid monthly, directly into your registered bank account. Processing takes approximately 5–10 working days from approval. Your portal dashboard shows approval status and payment dates.

Step 6 — Continue receiving monthly until eligibility ends

You do not need to re-apply monthly — payments continue automatically while you are eligible. However, if you return to employment before the 6-month period ends, you must notify PERKESO immediately and stop claiming. Overclaiming is a criminal offence under the EIS Act.

SOCSO Injury Claims — Step-by-Step#

If you are injured at work or during a work commute, this is the process. Speed matters.

Step 1 — Seek medical treatment at a PERKESO panel facility

Go to a PERKESO panel clinic or hospital. Treatment at panel facilities is covered at no cost to you. If the injury is severe, go to the nearest hospital emergency — PERKESO will cover emergency treatment even at non-panel hospitals. Keep all medical receipts.

Step 2 — Employer files Form 34 (Accident Report)

Your employer is required to file Form 34 (Notification of Accident) with PERKESO within 48 hours of being notified. Ask your HR department to confirm this has been done. If your employer refuses or delays, call PERKESO directly at 1-300-22-8800.

Step 3 — Submit your own claim documentation

You will need to file a personal claim. Documents required:

• Completed Form 10 (Claim for Benefit) — available at any PERKESO office or downloadable from perkeso.gov.my
• Your Medical Certificates (MC) covering the period of disablement
• Your MyKad copy
• Your bank account details

Submit to the PERKESO office where you are registered, or online via the Assist Portal.

Step 4 — Medical Assessment for Permanent Disablement

If your injury results in permanent disability, PERKESO will arrange a medical assessment by a PERKESO-appointed Medical Board. This board determines your percentage of permanent disablement, which directly calculates your benefit amount.

Step 5 — Receive Temporary Disablement Benefit

Temporary Disablement Benefit kicks in from the fifth day of certified medical leave onwards (the first four days are not covered unless you are hospitalised). Payments are made monthly. Your PERKESO panel doctor issues the medical certificates that authorise continued benefit payments.

Common Mistakes and Traps#

Mistake 1 — Assuming your medical bills are covered by SOCSO

SOCSO covers treatment at PERKESO panel facilities at no charge. But if you go to a private hospital for a work injury without PERKESO pre-authorisation, you may be billed directly. For non-emergency treatment, always go to a panel facility first.

Mistake 2 — Not checking your employer's contribution record

Some employers deduct SOCSO from your salary but do not remit it to PERKESO. This is fraud — and it means you have no coverage despite the deductions. Check the PERKESO Assist portal at least once a year to verify contributions are appearing.

Mistake 3 — Missing the EIS 60-day claim window

Retrenchment is stressful. Many workers delay sorting out paperwork. The 60-day window runs from your last working day — not from when you feel ready to deal with it. Set a reminder the same day you receive your retrenchment letter.

Mistake 4 — Thinking EIS covers resignations

Voluntary resignation does not qualify for EIS. If you are being pushed out through intolerable working conditions (constructive dismissal), you may still qualify — but you need to simultaneously lodge a claim with the Industrial Relations Department. Do not resign without getting advice first.

Mistake 5 — Confusing SOCSO's EIS commute coverage with general travel coverage

SOCSO covers accidents during your direct commute between your home and workplace. If you take a detour — even a short one for personal reasons — you may lose coverage for that leg. PERKESO will investigate the route taken when processing claims.

Mistake 6 — Ignoring the Return to Work Programme after a serious injury

PERKESO's Return to Work Programme offers employer incentives and vocational retraining for workers recovering from serious injuries. Many workers are never informed of this programme by their employers or treating doctors. Ask PERKESO about it proactively if you have a severe work injury.

The Gaps SOCSO and EIS Do Not Cover#

Be clear about what these schemes cannot do:

• SOCSO does not cover hospitalisation costs for non-work illnesses. A dengue admission, a cardiac event, a cancer diagnosis — none of these are covered unless you qualify for the Invalidity Pension (total, permanent inability to earn). For medical expenses, you need a medical card.
• EIS does not cover contract workers whose contracts expire. Fixed-term contract non-renewal is not treated as retrenchment under EIS — you need to have been dismissed under a permanent contract.
• Neither scheme pays enough to replace your full salary long-term. SOCSO Invalidity Pension has a current minimum of RM475/month. EIS pays only 30% of your insured wage in month six. Both are safety nets, not retirement income.
• Self-employed workers have no EIS equivalent. If your freelance pipeline dries up, no government scheme compensates you. Build your own emergency fund.

Every guide on money.com.my is fact-checked against primary sources (Bank Negara Malaysia, PERKESO, Department of Statistics Malaysia, LHDN) before publication. If you find an error, email us — corrections are published with a dated amendment note.