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Types of SOCSO Options

This article explains the SOCSO contribution options in brioHR— and how the Automatic option resolves an employee's SOCSO contribution based on nationality and date of birth.

Audience & Scope

Audience: HR Admin & Payroll Manager

Module: Payroll

Country: Malaysia

Pre-requisites: HR Module Permission for Payroll module and Profile Sensitive data access for Employee Payroll

 

Overview of SOCSO options in brioHR Payroll

SOCSO, also known as the Social Security Organisation (PERKESO), is a statutory social security scheme in Malaysia that provides employees with protection and benefits for situations such as employment injuries and invalidity. Employers and eligible employees are required to make SOCSO contributions based on the applicable contribution category and statutory requirements. 

SOCSO contribution categories are now easier to manage with the new Automatic option. With the Automatic option, the system automatically determines the appropriate SOCSO category based on the employee's nationality and date of birth when payroll is processed. For example, when a Malaysian employee reaches the age of 60 and needs to move from Category 1 to Category 2. 

This enhancement follows a similar approach to the existing EPF and EIS options.

Option Behaviour
Non related No SOCSO contribution made
Automatic brioHR automatically determines the appropriate SOCSO category based on the employee's nationality and date of birth when payroll is processed
Category 1: Insured against invalidity, employment injury & SKBBK 1.75% of employer’s share and 0.5% of employees’ monthly wages according to the contribution schedule + 0.75% SKBBK contribution (employee contribution)
Category 2: Insured against employment injury & SKBBK 1.25% of employees’ monthly wages, payable by the employer, based on the contribution schedule + 0.75% SKBBK contribution (employer contribution)
Category 1: Insured against invalidity and employment injury 1.75% of employer’s share and 0.5% of employees’ monthly wages according to the contribution schedule 
Category 2: Insured against employment injury only 1.25% of employees’ monthly wages, payable by the employer, based on the contribution schedule 
Custom Rate Customize the % contributed by employee and employer
Custom Value

Customize the amount contributed by employee and employer

Official website links:

Coverage of the Workers Social Security Act 1969 

Non-Employment Injury Scheme (LINDUNG 24 JAM) 

New Contribution Rate Including SKBBK 

PERKESO Contribution Calculator

IMPORTANT: 

Existing employees will not be automatically switched to the Automatic option. The Automatic option must be selected manually for each employee who should use this setting.

How the Automatic SOCSO Category Works 

When Automatic is selected, the system determines the employee's SOCSO category based on their nationality and age during the relevant payroll period. 

 Employee   Age at Payroll Period   SOCSO Category 
 Malaysian   Under 60  Category 1 – Insured against Invalidity, Employment Injury & SKBBK 
 Malaysian   60 and above   Category 2 – Insured against Employment Injury & SKBBK 
 Non-Malaysian   Any age   Category 2 – Insured against Employment Injury & SKBBK 

IMPORTANT: 

When using the Automatic option, the system will always assign the employee to a SOCSO category with SKBBK.

The No SKBBK options will remain available for manual selection only. This is because SKBBK eligibility or opt-out status depends on the employer's designation with PERKESO and cannot be determined using the employee's profile information alone.

TIP:

If "Automatic" was chosen for the employee's SOCSO setting, you can see this icon when processing payroll. Hover over the icon next to the employee's name and you will be able to see the categories the employee is assigned to. 

Employees with Missing Information

The employee's nationality and date of birth are required for the system to determine the SOCSO category automatically.

If either information is missing:

  • The system will be unable to determine the appropriate SOCSO category.
  • A warning message will be displayed.
  • Payroll processing will be blocked, and no payslip will be generated until the required information is completed.

IMPORTANT:

Unlike EPF, there is no upper age limit where an employee becomes Non-related for SOCSO contributions.

SOCSO Employment Injury coverage continues for as long as the employee remains employed. Therefore, when the Automatic option is selected, the system will continue to determine the appropriate SOCSO category and will not automatically resolve the employee as Non-related based on age.

 

How to change employee's EIS contribution option

A: Change for individual employee

1. Go to HR Lounge > Employee Management 

2. Choose the employee 

3. Click the Payroll tab 

4. Scroll down to the Statutory Contributions section and click Edit 

5. Choose the relevant option at the dropdown 

6. Click Save 

 

B: Change in bulk for multiple employees

1. Go to HR Lounge > Payroll, select the payroll center

2. Under Dashboard tab, scroll down to find the Payroll employees list 

3. Click Bulk Download/Upload 

4. Click Download .xlsx  

5. Edit the SOCSO column of the downloaded Excel as needed 

6. Save the Excel file and Upload it from the same Download/Upload screen 

 

Common Issues/FAQ 

Q1: What happens if payroll is run for an Automatic employee with missing nationality or date of birth?

A: A warning banner is shown (e.g. "{Name} — Missing nationality") under "Unable to compute payslip," and Continue is disabled until it's resolved. You can either complete the missing profile information or exclude the employee from that payroll cycle.

Q2: Can the Automatic option select a SOCSO category without SKBBK?

A: No. SOCSO categories without SKBBK remain available for manual selection only. This is because SKBBK opt-out eligibility depends on the employer's designation with PERKESO and cannot be determined automatically from an employee's profile information.

Q3: Will the Automatic option assign an employee as Non-related?

A: No. Unlike EPF, there is no upper age cut-off for SOCSO Employment Injury coverage as long as the employee remains employed.

Therefore, the Automatic option will not resolve an employee as Non-related based on their age.

Q4: How can I check what an Automatic employee's SOCSO is resolving to before finalizing payroll?

A: On the run payroll screen, hover over the tooltip next to the employee's name — it shows the chosen Category for that cycle.

 

Related Articles 

How to Update Employee Payroll Details

Types of EPF Category

Types of EIS Options 

 

Ownership 

By: Arveena