Starting 1 June 2026, foreign workers on your payroll are now required to contribute to SOCSO. If you have foreign employees, you need to update their records before running June 2026 payroll.
The Short Version
PERKESO (SOCSO) has expanded its 24-hour accident and death protection scheme — called SKBBK or Lindung 24 Jam — to cover foreign workers. This used to apply to Malaysian employees only. From June 2026, it covers everyone.
This is not optional. Foreign workers must be enrolled and contributions must appear in your monthly payroll.
Who Is Affected
You need to take action if you have:
- Foreign workers currently set to "Not applicable" for SOCSO
- Any employee whose SOCSO category hasn't been reviewed recently
No action needed for:
- Local employees already set to Category 1 or Category 2 — they were already covered
- EIS (Employment Insurance System) — foreign workers are still excluded from EIS, no change there
What You Need to Do
Step 1 — Update your foreign workers' profiles
Open each foreign employee's record → go to the Statutory Information tab → turn on the SOCSO toggle and select the correct category:
- Under 60 years old → Category 1
- Age 60 or above → Category 2
Step 2 — Fill in the SOCSO number
Make sure every enrolled employee has their SOCSO registration number filled in. PERKESO requires this for submission.
Step 3 — Check June 2026 payroll
If you already ran payroll for June 2026 before making these changes, delete that run and regenerate it so the correct SOCSO amounts are included.
What Your Employees Will See on Their Payslip
Foreign workers will now see a SOCSO deduction on their June 2026 payslip. Let them know in advance so it doesn't come as a surprise — it is a legal requirement, not a company policy.
SOCSO Contribution Categories at a Glance
| Category 1 (under 60) | Category 2 (age 60+) | |
|---|---|---|
| Local employees | Full SOCSO (employee + employer) | Reduced rate (employer only for EI) |
| Foreign employees | SKBBK contribution only | SKBBK contribution only |
For Accountants — Rate and Ceiling Details
Wage ceiling: SOCSO contributions are calculated on insurable wages up to RM 6,000 per month. Wages above RM 6,000 are capped at the RM 6,000 bracket amount.
SKBBK phased rates:
| Period | Rate |
|---|---|
| 2026 – 2027 | 0.75% of insurable wage |
| 2028 – 2030 | 1.00% |
| 2031 onwards | 1.25% |
Contribution amounts are fixed RM figures from PERKESO's official bracket table — not a simple percentage calculation. There are 64 wage bands from RM 0 to RM 6,000.
Category 1 (local, under 60): Employee contributes to Employment Injury + Invalidity + SKBBK. Employer contributes to Employment Injury + Invalidity.
Category 2 (local, age 60+ / all foreign workers): Employee contributes to SKBBK only. Employer contributes to Employment Injury only.
For monthly SOCSO submissions (Borang 8A): Foreign worker contributions under SKBBK must be included from the June 2026 submission onwards.
Source: PERKESO official contribution rate table including SKBBK (Lindung 24 Jam), effective 1 June 2026. Visit perkeso.gov.my for the full rate schedule.