Payments Subject to SOCSO/EIS Contribution

“Wages” for contribution purposes refers to all remuneration payable in money by an employer to an employee.

This includes:

• Basic Salaries
• Overtime payments
• Commissions
• Payments in respect of leave
• Service charges

Payments Exempted From SOCSO/EIS Contribution

The payments below are not considered “wages” and are not included in the calculations for monthly deductions:

• Any contribution payable by the employer towards any pension or provident fund
• Any travelling allowance
• Any gratuity payable on discharge or retirement of the employee
• Any sum paid to cover expenses incurred by the employee in the course of his duties
• Annual bonus
• Gifts – eg, cash payments for holidays like Hari Raya, Christmas

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