These are the 5 main questions people ask most when coming to the March-April months every year. It is the time period when everyone is required to submit their Annual Return Form and Income Taxes.
|Who pays EPF, SOCSO and EIS ?
Employers are responsible to register their employees/staffs into PERKESO and KWSP during the start of hiring. Some accounting firms may provide this service at a fee, or if you’re on a tight budget you may want to do this yourself (it’s free afterall).
When you hire an employee, they have a basic salary which you have offered and agreed upon. This basic salary (a.k.a Gross Salary) is not the final amount you should be paying to the employee at month end. A portion of the Gross Salary has to be deducted for EPF, SOCSO and EIS. As the employer, you will also need to contribute on top of it.
So both employee and employer have to contribute/pay for EPF, SOCSO and EIS.
|Who is entitled to EPF, SOCSO and EIS ?
All your employees are entitled. It is against the Employment Act if you are dishonest in declaring or short changing the EPF, SOCSO and EIS amount paid. If the director is taking a salary, then the director has to contribute too. (If the director is only taking a Director Fee, it is exempted)
Self-employed / Foreign Worker: Optional to contribute to EPF.
Foreign Workers employed with permit directly under your company are to be registered and will need to contribute to SOCSO. [Link]
What is the amount for EPF, SOCSO and EIS ?
There is a schedule to follow for each:
Where / How do I pay for EPF, SOCSO and EIS ?
You can pay for SOCSO and EIS via PERKESO’s Assist Portal.
*Register with PERKESO first to get an account. Make a visit to PERKESO / appoint an agent to do it for you at a fee
You can pay for EPF via KWSP’s i-Akaun.
*Register with KWSP first to get an account. Your Company Secretary would normally be able to help you out too.
When do I pay ?
Employers are required to make this contribution payment before the 15th of the following month after the salary month.
E.g. Salary for January, you have to make the contribution before 15th February.
Why should I pay ?
According to Employees Provident Fund Act 1991, EPF is a mandatory contribution by employers and employees under the Malaysian Laws.
According to Employees’ Social Security Act 1969, SOCSO and EIS is a mandatory contribution by employers and employees under the Malaysian Laws.
Failure to adhere to these laws may incur penalties for the Director and the Company itself.
Ok..I’ve understood that this is a must so where should I start ? We’ve summarized this into a few simple steps:
- Register your company with PERKESO and KWSP to get your relevant account details.
- Register for an account with Beacon Cloud.
- Enter your employees details into Beacon Cloud.
- Generate a batch payslip at the end of the month. (Beacon Cloud Payroll takes care of all the calculations for you automatically so you don’t have to fuss over it.)