PERKESO SKBBK Contribution Effective 1 June 2026

Audience & Scope

Audience: Admin, Payroll Processors

Module: Payroll

Country: Malaysia

Pre-requisite: Access to Payroll in HR Lounge, Access to view employee profile information

What is SKBBK?

PERKESO has introduced a new scheme called SKBBK (Skim Kemalangan Bukan Bencana Kerja). This scheme provides employees with 24-hour accident protection coverage beyond working hours, including protection for non-work-related accidents such as:

Home accidents
Personal travel injuries
Other accidents occurring outside the workplace

The initiative aims to extend social security protection for employees beyond employment-related incidents.

Effective Date

⚠️ Update — July 2026: PERKESO has since made the SKBBK contribution (also known as Lindung 24) optional for local employees and mandatory only for foreign workers. The requirement described below reflects the original 1 June 2026 rule. For the current rules and how to change the contribution option, see Changing PERKESO SKBBK Contribution Option.

Starting 1 June 2026, employers were required to

Deduct the SKBBK contribution from employee salaries and;
Submit it to PERKESO monthly.

This requirement has since changed — see the July 2026 update note at the top of this article.

Updated SOCSO Category Labels

To align with the government’s official terminology, the system labels will be updated as follows:

Category 1 : Insured against invalidity, employment injury & SKBBK
Category 2 : Insured only against employment injury & SKBBK

These updates will be reflected across the payroll system, including bulk download and upload features where the dropdown menu options will now display Category 1 and Category 2.

NOTE:

We have maintained Category 1 & Category 2 options without SKBBK for the SOCSO contribution. You may choose Category 1 or Category 2 without SKBBK in special scenarios, e.g., an employee who contributes to SOCSO in more than one subsidiary but only needs to pay SKBBK from one subsidiary. This is an example scenario; please check and confirm with PERKESO for special cases to ensure compliance.

Contribution Changes

The SKBBK contribution applies to both Category 1 and Category 2 contributions.

Under the new changes:

Contributions are fully borne by employees.
Employee contribution rates will be implemented in phases:

0.75% for the first two years (Phase 1)
1.0% for the next three years (Phase 2)
1.25% from the sixth year onwards (Phase 3)

Here is an example of the current rates for a monthly salary of RM30 to a cap of RM6000:

Official Sources:

IMPORTANT:

Please note that these changes only affect the SOCSO organization and do not impact EIS contributions.

IMPORTANT:

All Malaysian Banks with the SOCSO txt file will have the SKBBK amount automatically updated into the text file.

To access this txt file, click into a completed payroll cycle and then click Download at the Bank File section:

Payroll Calculation and Reporting Updates

During the payroll run process, the system will calculate the SKBBK and Invalidity contributions together and display them as a single contribution amount.

Users can hover over the row tooltips during payroll processing to view a detailed breakdown of:

Invalidity contribution amount
SKBBK contribution amount

Example of employee assigned to Category 1:

Example of employee assigned to Category 2:

Additionally, the payroll reports will be updated to include the SKBBK amount as part of the:

Total employee contributions
Total statutory contributions
Employee net pay calculations

NOTE:

The SKBBK contribution is captured in a separate column than the SOCSO contribution within these reports.

The updated amounts will also be reflected in:

Company payroll reports
Existing statutory deduction fields in Report Builder

Payslip Display Updates

The employee's SOCSO deduction displayed on the payslip will now automatically include the SKBBK contribution amount.

There will be:

No additional or separate SKBBK row shown on the payslip
A higher total SOCSO deduction amount reflecting the SKBBK contribution automatically included within the existing SOCSO line item
Example of payslip:

Employee assigned to Category 1

Employee assigned to Category 2

This ensures the payslip layout remains clean while still reflecting the updated statutory deduction totals.

What Employers Should Do

To prepare for the new PERKESO requirement, employers are encouraged to:

Review payroll settings and SOCSO contribution configurations
Familiarize payroll administrators with the updated category labels
Verify payroll reports and statutory contribution calculations
Ensure June 2026 payroll processing includes the SKBBK deductions and submissions

Keeping payroll configurations updated will help ensure compliance with the latest PERKESO statutory requirements.

Frequently Asked Questions

Q: Is the SKBBK contribution mandatory?

A: It became mandatory for all employees on 1 June 2026, but since July 2026 it is optional for local employees and mandatory only for foreign employees. To opt a local employee out, see Changing PERKESO SKBBK Contribution Option.

Q: How can I check how much the contributions will be for different pay grades?

A: You can refer to Page 4 of this document for the contribution amounts for each pay grade.

Q: Does SKBBK affect EIS contributions?

A: No. SKBBK only affects SOCSO contributions and does not impact EIS contributions.

Q: How will the contribution appear during payroll processing?

A: During payroll processing, the system will combine the Invalidity and SKBBK contributions into a single contribution amount. Users can hover over the payroll row tooltip to view the detailed breakdown of each amount.

Q: Will the SKBBK contribution apply to Category 2 employees?

A: Yes. Although Category 2 does not include the Invalidity Scheme, a SKBBK contribution is still required under the new regulation.

Ownership

By: Arveena