Payroll Services

Ensuring Compliance in Every Hire

Grow the business smoothly by keeping up with the Employment Act 1955 and all mandatory statutory contributions.

Employees’ Provident Fund (EPF) Contribution

Employee’s Status	Monthly Salary Rate	Below 60 years old	Above 60 years old
Malaysian	No Limit	–	Employer’s share: 4%
Malaysian	RM5,000 and below	Employee’s share: 11% Employer’s share: 13%	–
Malaysian	RM5,000 and above	Employee’s share: 11% Employer’s share: 12%	–
Foreigner	No limit	Employee’s share: 2% Employer’s share: 2%	Employee’s share: 2% Employer’s share: 2%

Please visit KWSP website for detailed information on both Employer and Employee contribution rates.

Potongan Cukai Bulanan (PCB)

Monthly personal tax deduction from the employee’s salary.
Personal tax is progressive from 0% to 30% for tax resident, 30% for non-tax resident.
PCB is the interim tax payments, individuals are to submit a BE form in the following year to calculate the final tax.

Access the E-calculator by LHDN to calculate the PCB payments.

Social Security Organization (SOCSO) Contribution

Workmen compensation that covers personal accident, hospitalization, certain terminal disease lump sum compensation.

Employee’s Status	60 years old or below	60 years old or above
Malaysian	Employee’s share: 1.75% Employer’s share: 0.5%	Employer’s share: 1.25%
Foreigner	Employee’s share: 1.75% Employer’s share: 0.5%	Employer’s share: 1.25%

Employee’s Status

60 years old or below

60 years old or above

Malaysian

Employee’s share: 1.75%

Employer’s share: 0.5%

Employer’s share: 1.25%

Foreigner

Employee’s share: 1.75%

Employer’s share: 0.5%

Employer’s share: 1.25%

Visit Perkeso website to view the table specifying the contribution amounts.

Employment Insurance System (EIS)

EIS is a financial scheme offers to help employees who have been retrenched. Contributions are channeled into a fund used to support affected employees, offering welfare benefits, career counselling, and job‑hunting services.

Employee’s Status	60 years old or below	60 years old or above
Malaysian	Employee’s share: 0.2% Employer’s share: 0.2%	Not Applicable
Foreigner	Employee’s share: 0.2% Employer’s share: 0.2%	Not Applicable

Employee’s Status

60 years old or below

60 years old or above

Malaysian

Employee’s share: 0.2%

Employer’s share: 0.2%

Not Applicable

Foreigner

Employee’s share: 0.2%

Employer’s share: 0.2%

Not Applicable

Visit Perkeso website to see the table specifying the contribution amounts.

HRDCorp

Human Resource Development Corporation (HRD Corp)

Applicable to companies with ≥10 Malaysian employees
Contribution amount is 1% based on the total Malaysian employees gross salary and fixed allowances.
The Contributed amount may be utilised in approved HRD training programmes.
May choose to cancel the contribution if number of employee dropped below 10 for continuously 3 months, however, the unutilised funds will be forfeited.

Zakat

Voluntary for all Muslims, Malaysia and foreigners.

Payroll solutions that we offer

Registration of Employer Files

Comprehensive employer registration with KWSP, SOCSO & EIS, LHDN, HRDCorp and Zakat – done seamlessly.

Monthly Payroll Services

– Computation of basic salary, bonus, overtime, commission, unpaid leave, annual leave and applicable contributions to EIS, SOCSO and HRDCorp (if applicable.)
– Issuance of employees pay slip via email.
– Submission of contribution forms & payment to respective statutory bodies.

Annual Submission

Preparation & e-filing of Employer File (Form E).

Employer Leaver Handling

Comprehensive processing of employee exits, including final payroll, statutory submissions, and required updates for Malaysian and Foreigner employees departing or transitioning.

FAQs

1) When does the company needs to register employer file? (E.g. KWSP, SOCSO, EIS and PCB)

Newly hired employee must be registered with KWSP, SOCSO and EIS, meanwhile, registration of employer file is compulsory for employer wise.

Note: E file number (PCB) is automatically registered with LHDN upon incorporation , with effective from year 2020.

2) Is it compulsory to register with HRD Corp?

It is COMPULSORY to register with HRD Corp should the Company hired 10 and above Malaysian employees

It is OPTIONAL for Company should it only hired between 5 to 9 Malaysian employees.

3) When the Company has no longer has employee, can the employer file be closed?

Yes, the Company can close all the employer file except E file (LHDN – PCB).

Company needs to cease its operation in order to close E file.

Note: Form E is compulsory to be submitted in yearly basis regardless the company has staff or not.

4) When is the due date to pay salary to staff?

Section 19 of the Employment Act says, an employer shall distribute salary to the employees not later than the seventh day after the last day of any wage period.

4) When is the due date to pay salary to staff?

Section 19 of the Employment Act says, an employer shall distribute salary to the employees not later than the seventh day after the last day of any wage period.

5) When is the due date for contribution payment?

Contribution’s payment is due on on the 15th day of every month.

For example, contributions for June 2022 must pay to the relevant government department before/on 15th July 2022.

6) Any penalty of contributions late payment?

KWSP	Calculate by KWSP
SOCSO	RM5 per month
EIS	RM5 per month
LHDN – PCB	10% Arrears Payment (RM) x 10% minimum penalty is RM200.00
HRDCorp	10% Arrears Payment (RM) x 10% x Number of days late / 365 days minimum penalty is RM5