SOCSO is Malaysia’s government workplace-injury and disability safety net, run by an agency called PERKESO (the Social Security Organisation). If you work for an employer here, you are almost certainly contributing to it, and the “SOCSO” line on your payslip buys two things: cover if you are hurt or fall ill because of your job, and cover if you become permanently unable to work for any reason. Since 1 January 2019, that first part also covers foreign workers, who used to sit outside the system entirely.
Part of our guide to Working & Money in Kuching.
The thing to understand up front is how narrow the core of it is. SOCSO is not health insurance. It does not pay for the flu, a dental crown, or a hospital stay unrelated to your work. It is built around injury, occupational disease, and long-term invalidity, and most of the money only flows when something goes wrong on the job. I assumed for my first while here that the deduction was buying me some general medical cover. It isn’t, and I gather I am not the only expat who got that wrong.
Key Takeaways
- SOCSO is administered by PERKESO and runs two main schemes: the Employment Injury Scheme and the Invalidity Scheme.
- For local employees under 60, the employer pays 1.75% and the employee 0.5% of monthly wages, capped at a RM6,000 wage ceiling (raised from RM5,000 on 1 October 2024).
- Foreign workers have been covered under the Employment Injury Scheme since 1 January 2019, added to the Invalidity Scheme from 1 July 2024, and the Non-Employment Injury (24-hour) scheme from 1 June 2026.
- The Employment Insurance System (EIS) is a separate scheme for job loss. It is for Malaysian citizens and permanent residents only, so most foreign workers neither pay it nor benefit from it.
- The Employment Injury Scheme covers accidents at work, occupational disease, and crucially the commute to and from work, paying 80% of wages for temporary disablement and 90% for permanent disablement.
- The claims process runs through your employer’s contribution records and a SOCSO Medical Board, and it is slow, document-heavy, and not designed for someone navigating it alone in a second language.
What is the difference between SOCSO and PERKESO?
They are the same thing, which is the first confusion to clear up. PERKESO (Pertubuhan Keselamatan Sosial) is the Malay name for the organisation; SOCSO is the English one, the Social Security Organisation. People use the two interchangeably, and so does the agency. When your HR department says “we’ve registered you with SOCSO” and your payslip says “PERKESO,” nothing different is happening.
PERKESO administers the schemes under the Employees’ Social Security Act 1969. It also runs the Employment Insurance System, a separate scheme people lump in with SOCSO that I’ll come back to.
What are the two main SOCSO schemes?
SOCSO is built on two schemes, and the difference matters for what you can actually claim.
The Employment Injury Scheme covers anything that happens because of your job: an accident at the workplace, an occupational disease, and accidents on your normal route between home and work. This is the part most people think of as “SOCSO.” If a forklift breaks your foot or you develop a lung condition from years on a factory line, this is the scheme that responds.
The Invalidity Scheme is broader in one way: it covers invalidity or death from any cause, not only work-related ones, as long as it leaves you permanently unable to earn a living. A worker who has a stroke at home and can no longer work may qualify even though the cause had nothing to do with the job. It pays a pension rather than a one-off, and it requires a minimum contribution history.
The official breakdown of both schemes and their benefits is on the PERKESO Employment Injury Scheme page.
Are foreign workers covered by SOCSO?
Yes, and this is the change that caught a lot of Sarawak employers off guard. Since 1 January 2019, foreign workers have been covered under the Employment Injury Scheme, the same as locals. Before that, they sat under a separate private arrangement, the Foreign Workers’ Compensation Scheme (FWCS), run through insurers under an older Workmen’s Compensation framework. SOCSO took that over.
Coverage has expanded since:
| Scheme | Foreign workers covered from |
|---|---|
| Employment Injury Scheme | 1 January 2019 |
| Invalidity Scheme | 1 July 2024 |
| Non-Employment Injury Scheme (24-hour cover) | 1 June 2026 |
For a foreign worker under the Employment Injury Scheme, the employer pays the contribution, currently 1.25% of wages for that scheme. The registration obligation and the penalties for employers who skip it are on the PERKESO foreign worker page.
Here is the awkward part. The shift from FWCS to SOCSO in 2019 was not smooth on the ground. For a couple of years afterwards I watched employers in Kuching, especially smaller outfits in construction and F&B, stay genuinely unsure which system they were meant to pay into and how to register a worker whose permit and contribution records didn’t line up. Some kept paying the old insurance out of caution. Some paid neither for a stretch. If you are a foreign worker, do not assume your registration is correct just because money is being deducted. Ask your employer for your SOCSO number and check it.
How much are SOCSO contributions in 2026?
For a local employee under 60, the standard split is 1.75% from the employer and 0.5% from the employee, covering both the Employment Injury and Invalidity Schemes. It is calculated on your monthly wage up to a ceiling of RM6,000, raised from RM5,000 on 1 October 2024. Earn more than that and your contribution still caps at the RM6,000 figure.
The figure on your payslip comes from a banded contribution table rather than a flat percentage of your precise salary, so each wage band lands on a fixed rate. On a RM3,000 wage the employee share is small, in the region of RM15, with the employer adding roughly RM50. The current table is published on the PERKESO rate of contribution page.
One change for 2026 worth flagging: PERKESO revised its contribution rates, the first significant adjustment in years, and added phased contributions for the newer Non-Employment Injury cover. If your take-home dropped slightly this year, this is a likely culprit.
Is EIS the same as SOCSO?
No, and this is the second thing people conflate. The Employment Insurance System (EIS), called SIP or LINDUNG KERJAYA in Malay, is run by PERKESO but is a separate scheme with a separate purpose: it pays a temporary income if you lose your job. It was established on 1 January 2018 and funded by 0.2% from the employer and 0.2% from the employee.
The part I had to learn the hard way: EIS is for Malaysian citizens and permanent residents only. A foreign worker on an employment pass generally does not contribute to EIS and cannot claim its job-loss benefits. So if you are an expat made redundant in Kuching, the Job Search Allowance a Malaysian colleague could claim is not open to you. Your safety net is your contract and notice period, not EIS.
What does the Employment Injury Scheme actually pay?
This is where SOCSO earns its keep, and the benefits are more substantial than the small deduction suggests:
- Medical benefit: treatment at SOCSO panel clinics or government hospitals for the injury or occupational disease until you recover.
- Temporary disablement benefit: if a doctor certifies you unfit for work for at least four days, SOCSO pays 80% of your average daily wage for the period you’re off.
- Permanent disablement benefit: if the injury leaves lasting damage, the Medical Board assesses the degree and you receive up to 90% of your average daily wage, as a lump sum for minor assessments or a monthly lifetime payment for serious ones.
- Dependants’ benefit: if a worker dies from an employment injury, surviving dependants receive 90% of the average daily wage. A funeral benefit and physical and vocational rehabilitation are also included.
The detail I nearly missed: the Employment Injury Scheme covers commuting accidents on your normal route between home and work. If you come off your motorbike on the way to the office in Kuching, that can be a SOCSO claim rather than only a private insurance matter. Deviations are excluded, so the detour to drop a friend at Satok before work is not covered. The full benefit list is on the Employment Injury Scheme page.
How do you make a SOCSO claim?
The claim runs through your employer’s records and a SOCSO office. In practice:
- Report the accident to your employer and get treated at a SOCSO panel clinic or government hospital. Keep every medical document.
- Submit the claim at a SOCSO office or online: the accident form (Form 10), your employer’s contribution and salary record (Form PKS (F) 1), a copy of your identity document or passport, the medical report, and your bank details.
- Medical Board assessment for permanent disablement claims: the Board assigns a disability percentage that sets whether you get a lump sum or a monthly pension.
- Mind the deadline: claims should be lodged within 12 months. Leave it too long and you can lose the entitlement.
Here is the un-glossed reality. The process is bureaucratic and slow, and it depends heavily on your employer having registered you correctly and kept clean contribution records, which is not a safe assumption for everyone. The forms and the Medical Board process run primarily in Malay, and there is no concierge walking you through it. For a foreign worker dealing with a serious injury, that is a real burden at the worst possible moment.
What does SOCSO mean for an expat working in Sarawak?
If you are an expat employed by a company in Kuching, three things are true. You are likely covered by the Employment Injury Scheme, so a workplace accident or a crash on your commute is a legitimate claim. You are probably not covered by EIS, so there is no government job-loss payout if you are let go. And SOCSO is not your health insurance, so a non-work illness or your family’s medical needs sit entirely outside it.
That last point is the one to act on. SOCSO covering your commute does nothing for the dengue case or the appendix that lands you in Normah on a weekend. Most expats here carry private health insurance to fill that gap, and a SOCSO line on your payslip is not a reason to skip it.
The practical move: ask your employer for your SOCSO registration number, confirm you are in the system, and note which scheme you fall under. If you are ever injured at work or on the way to it, report it the same day and keep the paperwork. For anything that isn’t a work injury, your private cover is what stands between you and the bill. Check both today, while nothing is wrong, because the system is far easier to understand from a desk than from a hospital bed.
Keep exploring Kuching Insider: EPF explained, Malaysia’s minimum wage, and the cost of living in Kuching.