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      Increased Wage Ceiling Limit for SOCSO & EIS Monthly Contributions

      IMPORTANT: Please read this article before processing your October 2024 payroll!

      Update on Contribution Amount for Act 4 and Act 800 in line with the Wage Ceiling Limit Increase

      Official Source:
      perkeso.gov.my
      PERKESO FAQ


      The Employees’ Social Security Act 1969 (Act 4) and the Employment Insurance System Act 2017 (Act 800) have been amended to enforce a new wage ceiling limit for SOCSO and EIS contributions, raising it from RM5,000 to RM6,000 per month.

      This amendment takes effect on 1st October 2024. As a result, employees earning more than RM5,000 per month will see higher SOCSO and EIS contributions. For employees earning over RM6,000 per month, contributions will be capped at the RM6,000 wage ceiling. Therefore, SOCSO and EIS contributions for October 2024 and subsequent months should be made by employers according to the new wage ceiling.

      To ensure compliance, BrioHR has automatically updated the system to reflect these changes.

      NOTE:

      • The increased wage ceiling limit applies to all PERKESO contributions, including EIS and both SOCSO categories.
      • Payroll processors using BrioHR to run the October 2024 payroll will notice higher SOCSO and EIS contributions for October and subsequent months, especially for employees earning above RM5,000.
      • HR/Admin personnel do not need to make any changes to employee payroll information in their profiles, as the BrioHR system will automatically apply these updates when you are processing the October 2024 payroll.
      CAUTION (For Processing October 2024 Payroll) :

      Please follow the steps below depending on your payroll status:

      1. If you have already completed the October payroll:
      • If the payroll cycle is completed, you must re-open and refresh it. For employees earning more than RM5,000, the updated SOCSO and EIS contribution amounts will be reflected.
      • If you’ve completed the first cycle of your payroll and are yet to complete the second cycle, the system will automatically calculate any remaining SOCSO and EIS amounts (if applicable).
      2. If you haven't started the October 2024 payroll yet:
      • Simply run the October 2024 payroll as usual.
      • For employees with a salary of RM5,000 and above, you’ll notice higher SOCSO and EIS contribution amounts.
      3. If you've started the October 2024 payroll but haven’t closed the cycle:
      • Open the ongoing cycle and the SOCSO and EIS contribution amounts remain the same.
      • Thus, you’ll need to manually trigger the refresh banner by changing details at payroll center settings to 'refresh' the payroll.
      • Kindly contact BrioHR Live Chat for further assistance on how to manually trigger the refresh banner.
      4. If you've started and closed the October 2024 payroll:
      • You’ll need to reopen the payroll cycle.
      • A refresh banner will appear on the cycle page, showing that changes were made to the payroll.
      • Again, you can choose to “refresh by individuals” or “refresh all” to see the updated deduction amounts.
      If you need any assistance, especially with reopening a closed payroll cycle, please don't hesitate to contact BrioHR via Live Chat.


       Need Assistance?

      If you have any questions or require assistance, please reach out to our support team via live chat or email us at support@briohr.com.