As everybody known, SOCSO is just like a general insurance for employees; made compulsory by the government. However, you won’t get it back at the later stage as EPF does. Do you know how to calculate it? SOCSO contribution is different from EPF deduction and it’s based on the SOCSO table. And, the highest SOCSO deduction for employee is only RM14.75.
Your salary, overtime payments, commission, allowances will be taken into account for the purposes of SOCSO contribution.
Salary = RM 2000.00
Overtime Payments = RM 200.00
Allowances = RM 50.00
Total Salary = RM 2250.00
I this scenario, do you know how much SOCSO should be deducted from your salary?
Total contribution to be paid to SOCSO is RM50.60 (Refer the SOCSO table).
Employees who earn more than RM3,000 and above have the option not contribute to SOCSO with the condition that they had not previously registered or paid contributions to SOCSO. In the other words, their first job salary must be RM3,000 or greater than that then only can choose not to contribute.