SOCSO contributions in Malaysia are calculated based on the employee’s wages and are subject to certain contribution rates set by the government. These rates can vary depending on factors like the employee’s salary bracket and the classification of the industry under the Employment Injury Scheme.
Example Calculation:
Let’s consider an example where an employee earns a monthly salary of RM 5,000.
- Employee’s Contribution: The employee’s contribution rate is typically a percentage of their monthly salary. Let’s assume a contribution rate of 0.5% for this example.
Employee’s Contribution = RM 5,000 * 0.005 = RM 25 per month (0.5% of RM 5,000)
- Employer’s Contribution: The employer also contributes to SOCSO based on the employee’s wages. Employer contribution rates can vary; let’s assume a rate of 1.25%.
Employer’s Contribution = RM 5,000 * 0.0125 = RM 62.50 per month (1.25% of RM 5,000)
Total Monthly Contribution to SOCSO:
Total Contribution = Employee’s Contribution + Employer’s Contribution Total Contribution = RM 25 (Employee) + RM 62.50 (Employer) = RM 87.50 per month
So, based on this example with a monthly salary of RM 5,000 and assumed contribution rates, the total monthly SOCSO contribution for this employee would be approximately RM 87.50.
It’s important to note that the actual contribution rates can vary based on factors like changes in government regulations or updates in contribution percentages. Always refer to the latest rates provided by SOCSO or Malaysian government authorities for accurate calculations.