Wages Not Subject To Socso Contribution

Socso is not responsible.

Wages not subject to socso contribution. Any contribution payable by the employer towards any pension or provident fund. All renumeration or wages stated below and payable to staff workers are subject to socso contributions. Section 43 1 epf act 1991. Among the payments that are exempted from epf contribution.

However the following payments are not considered as wages. Gratuity payment s for dismissal or retrenchments. Subject to the provisions of section 52 every employee and every employer of a person who is an employee within the meaning of this act shall be liable to pay monthly contributions on the amount of wages at the rate respectively set out in the third schedule. Payments by an employer to any statutory fund for employees.

Payments by employer to any pension or provident fund for employees. Wages not subject to socso contribution. All payments made to an employee paid at an hourly rate daily rate weekly rate piece or task rate is considered as wages. Any gratuity payable on discharge or retirement of the employee.

Not all wages payments to staff workers are subject to socso contribution and there are certain wages excluded from socso contribution. Both the rates of contribution are based on the total monthly wages paid to the. The company will pay 1 75 while the staff workers will contribute 0 5 of their wages for the employment injury insurance scheme and the invalidity pension scheme. Payments exempted from socso contribution.

Government employees domestic workers and the self employed are exempt. Wages subject to socso contribution. Socso rate of contributions 27032020. Employers in the private sector are required to pay monthly contributions on behalf of each employee.

Wages not subject to socso contribution. Service charge any money or payment either in the form of a service charge a service fee a tip or other payments which has been paid by charged on collected from or voluntarily given by a customer or any other person who is not the employer with respect to the employer s business. Contribution rates are set out in the second schedule and subject to the rules in section 18 of the employment insurance system act 2017. Salary wages full part time monthly hourly overtime payments commission paid.

Registration of employer and employee employer and its employees must be registered with socso not later than 30 days on which the act becomes applicable to the industry for the purpose of registration an employer is required to complete the employer s registration form form 1 employee s registration form form 2 together with relevant documents specified please get the checklist. The following wages or remuneration payable to staff workers are not subject to socso contribution. Wages subject to socso contribution. The payments below are not considered wages and are not included in the calculations for monthly deductions.

For socso provide social security protections to all employees workers in malaysia the requirements for contribution are as below.