2026 Edition
Everything Malaysian HR and payroll professionals need — EPF, SOCSO,
EIS, PCB/MTD, leave entitlements, compliance deadlines and practical
guidance. All in one comprehensive guide.
WHY THIS GUIDE MATTERS
Every payroll run in Malaysia carries legal weight. Get it right, and your people are paid accurately, your contributions land on time,
and your business stays on the right side of four separate statutory frameworks. Get it wrong, and the consequences range from financial
penalties to prosecution.
For HR and payroll teams, the challenge is real. Malaysian payroll is not complicated in principle — but it is detailed, and the details
matter. Here is a plain-language overview of what employers need to manage in 2026.
This guide explains:
THE FOUR STATUTORY FRAMEWORKS
Employees Provident Fund
Mandatory retirement savings. Employers contribute 12–13% of wages (depending on whether the employee earns above or below RM5,000 per month); employees contribute 11%. Submissions are due by the 15th of the following month.
Social Security Organisation
Provides employment injury and invalidity protection. Employer contributions are about 1.75% of wages, while employees contribute around 0.5%, with a RM6,000 monthly wage ceiling for the Invalidity Scheme. From June 2026, SOCSO also administers Skim Lindung 24 Jam, adding employee-borne premiums of 0.75%, rising to 1.25% from 2031. No additional employer contribution applies. Payments are due by the last day of the following month.
Employment Insurance System
funds financial support for retrenched employees. Employers contribute 0.2% and employees 0.2% of monthly wages, capped at RM6,000. Also due by month end, submitted alongside SOCSO via the PERKESO ASSIST portal.
Potongan Cukai Bulanan/Monthly Tax Deduction
progressive income tax deducted at source and remitted to LHDN. The correct deduction depends on each employee’s salary, declared reliefs, tax category and number of dependants. Due by the 15th of the following month.
These are the mistakes that happen when payroll is managed manually, systems aren't configured correctly,
or teams are stretched across too many obligations at once. The penalties — fines, dividend charges
and director liability — are real.
Applying the wrong EPF employer rate at the RM5,000 wage threshold
Missing the EA Form deadline for employees who left mid-year
Misapplying the RM6,000 wage ceiling for SOCSO and EIS
Multi-state public holiday mismanagement across Peninsular and East Malaysia
Processing a bonus without triggering a PCB recalculation
Failing to register a new joiner with SOCSO before month close
Incorrect pay component classification across EPF, SOCSO and PCB
Applying the wrong EPF employer rate at the RM5,000 wage threshold
Processing a bonus without triggering a PCB recalculation
Missing the EA Form deadline for employees who left mid-year
Failing to register a new joiner with SOCSO before month close
Misapplying the RM6,000 wage ceiling for SOCSO and EIS
Incorrect pay component classification across EPF, SOCSO and PCB
Multi-state public holiday mismanagement across Peninsular and East Malaysia
HOW MiHCM HANDLES MALAYSIA PAYROLL
MiHCM handles EPF, SOCSO, EIS and PCB calculations automatically. Every pay run applies the correct
employer and employee rates. Submission-ready output files are generated as standard. EA Forms
and E Forms are produced at year-end automatically.
EPF 12%/13% split, SOCSO/EIS RM6,000 ceiling, progressive PCB — all applied automatically every run.
EPF, SOCSO and EIS contribution files for direct upload. e-Data PCB in LHDN-prescribed format for MyTax.
EA Forms and E Form generated automatically, removing the February–March deadline pressure.
Borang A, Borang E, CP-39, CP21, CP22, CP22A, Lampiran B, PTPTN and more — one click.
New June 2026 SOCSO premium handled automatically in the payroll engine.
Malaysia, Singapore, Thailand, Sri Lanka, Cambodia and more — unified HR platform.
