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⚡ Quick Answer
SOCSO (also known as PERKESO) provides Malaysian employees with injury, disability, and death coverage, while EIS (Employment Insurance System) pays you a monthly benefit if you lose your job. Both are compulsory contributions deducted from your salary — here’s exactly what you’re entitled to and how to claim.
What Is SOCSO (PERKESO)?
SOCSO stands for Social Security Organisation, known in Malay as PERKESO (Pertubuhan Keselamatan Sosial). It’s Malaysia’s social insurance institution, established under the Employees’ Social Security Act 1969.
Every employed Malaysian earning below RM5,000/month (and many above that threshold too) has SOCSO contributions deducted from their salary — 0.5% from the employee and 1.75% from the employer, up to a salary ceiling of RM5,000/month.
SOCSO provides two key schemes:
- Employment Injury Scheme — covers accidents at work or while commuting to/from work
- Invalidity Scheme — covers permanent disability or death not related to work
What Does SOCSO Cover?
Employment Injury Scheme
This covers you if you’re injured at work or during your commute. Benefits include:
- Medical treatment — SOCSO panel clinics and hospitals cover treatment costs
- Temporary Disablement Benefit — 80% of your daily wage if you’re unable to work for more than 4 days due to a work injury
- Permanent Disablement Benefit — monthly pension if the injury results in permanent partial or total disability
- Dependant’s Benefit — paid to your spouse/children if you die due to a work-related accident
- Funeral Benefit — RM2,000 paid to cover funeral expenses
- Physical Rehabilitation — physiotherapy and prosthetics if needed
Invalidity Scheme
This covers you if you become permanently disabled or die from non-work-related causes (e.g., a serious illness). Benefits include:
- Invalidity Pension — monthly pension if you’ve lost at least 2/3 of your earning capacity
- Invalidity Grant — lump sum if you don’t qualify for a full pension
- Survivors’ Pension — paid to your dependants if you die while covered
- Constant Attendance Allowance — additional allowance if you need full-time care
What Is EIS (Employment Insurance System)?
The Employment Insurance System (EIS), introduced in 2018, is a separate scheme also managed by PERKESO. It’s specifically designed to support you if you lose your job through retrenchment or company closure.
Contribution rate: 0.2% employee + 0.2% employer (up to the salary ceiling of RM5,000/month). This is a relatively small deduction but can be invaluable when you need it.
EIS does NOT cover: resignation, retirement, expiry of fixed-term contract (though some amendments may apply — check with PERKESO for the latest).
What EIS Benefits Can You Claim?
Job Search Allowance (JSA)
The core EIS benefit. If you’re retrenched, you can receive a monthly allowance for up to 6 months while you look for a new job. The amount is based on your last drawn salary and contribution history:
| Monthly Salary | JSA Amount (per month) | Duration |
|---|---|---|
| RM1,000 | ~RM400–RM600 | Up to 6 months |
| RM2,000 | ~RM800–RM1,000 | Up to 6 months |
| RM3,000 | ~RM1,000–RM1,200 | Up to 6 months |
| RM5,000 | ~RM1,300–RM1,500 | Up to 6 months |
Note: Exact amounts are calculated based on the EIS benefit table and your insured salary. Use the PERKESO EIS calculator at perkeso.gov.my for your specific figure.
Training Allowance
If you enrol in approved training programmes through SWiTC (formerly HRDF/HRD Corp), EIS can subsidise your training costs and provide a training allowance.
Career Counselling
PERKESO’s Employment Facilitation Programme offers free career counselling, job placement assistance, and interview preparation through its network of offices and the EIS Portal (eismy.perkeso.gov.my).
Early Re-Employment Allowance
If you find a new job before your 6-month JSA period ends, you can claim a bonus — 1/4 of your remaining JSA entitlement as a lump sum reward for getting back to work quickly.
How to Check Your SOCSO and EIS Contributions
Your employer is responsible for deducting and remitting your contributions each month. To verify your contributions are being made correctly:
- Visit perkeso.gov.my and log in to MySOCSO (myinfo.socso.com.my)
- Check your contribution history under “My Contributions”
- Download your statement to confirm all months are accounted for
If contributions are missing, your employer may be violating the law. Report it to PERKESO — they take enforcement seriously.
How to Make a SOCSO Claim (Step by Step)
For Work Injury Claims
- Report the accident to your employer immediately (or as soon as possible)
- Your employer must submit Form 34 (Employer’s Accident Report) to PERKESO within 48 hours of the accident
- Seek treatment at a SOCSO panel clinic or hospital — treatment costs are covered directly
- For Temporary Disablement Benefit, ensure your employer submits the completed form; PERKESO will calculate and pay the benefit
- Track your claim status at mySOCSO portal or via the PERKESO app
For EIS Job Loss Claims
- Log in to eismy.perkeso.gov.my
- Submit your retrenchment notice or termination letter as supporting document
- Apply for JSA within 60 days of your last day of employment
- Complete your fortnightly job search report online to continue receiving payments
- EIS allowance is paid directly to your bank account
Important: You must actively apply for jobs (minimum 5 per month) and report your job search activities to continue receiving EIS payments. Failing to do so can result in benefits being suspended.
SOCSO for Gig Workers and Self-Employed
Since 2017, PERKESO has allowed self-employed individuals and gig workers to voluntarily contribute to SOCSO under the Self-Employment Social Security Scheme (SESSS). Contributions are RM10.50 per month (based on the minimum insured income of RM300) up to a maximum rate.
This is particularly valuable for Grab drivers, freelancers, and small business owners who have no employer to cover them. The Employment Injury Scheme coverage applies — so if you’re injured during work, you’re protected.
Our Recommendation
SOCSO and EIS are one of the best deals in Malaysian personal finance — your employer co-funds your protection, and the benefits can be substantial if you ever need them. The critical action item: verify your contributions are being made correctly every few months via the mySOCSO portal. Errors happen, and catching them early is far easier than chasing down months of missing contributions later.
For those in gig work or self-employment, the voluntary SESSS contribution is worth the RM10.50/month — work injury coverage for the cost of a bubble tea.
Frequently Asked Questions
Does SOCSO cover COVID-19 or illness?
If you contracted COVID-19 or another illness in a work-related context (e.g., a healthcare worker), it may qualify under the Employment Injury Scheme. Non-work illnesses are covered under the Invalidity Scheme if they result in permanent disability.
Can I claim EIS if I resign?
No. EIS covers involuntary job loss — retrenchment, company closure, or constructive dismissal. Voluntary resignation does not qualify for JSA.
What if my employer doesn’t register me with SOCSO?
This is illegal. Report it to PERKESO — they have enforcement powers to penalise non-compliant employers and can backdate your contributions. You can file a complaint at perkeso.gov.my or call the PERKESO hotline at 1-300-22-8000.
Is there a salary limit for SOCSO contributions?
The contribution ceiling is RM5,000/month of insured wages. If you earn more than RM5,000/month, contributions are still calculated on RM5,000. However, employees who were already contributing before the ceiling was adjusted can opt to contribute on actual wages.
How long do I have to contribute before I can claim EIS?
You need at least 12 months of EIS contributions (not necessarily consecutive) within the 24 months before your retrenchment to qualify for Job Search Allowance. The longer you’ve contributed, the more months of benefits you’re entitled to (up to 6 months).
