Eis Contribution Table Malaysia
All employers in the private sector whose employees are covered under the act are required to pay.
Eis contribution table malaysia. Contribution rate of eis for socso table 2019 malaysia contributions to the employment insurance system eis socso table 2019 are set at 0 4 of the employee s assumed monthly salary. 0 2 will be paid by the employer while 0 2 will be deducted from the employee s monthly salary. All employers in the private sector are required to pay monthly contributions for each of their employees.
Malaysia on the other hand is catching up to provide retrenchment benefits to unemployed malaysians. 0 2 will be paid by the employer while 0 2 will be deducted from the employee s monthly salary. For employees who receive wages salary of rm5 000 and below the portion of employee s contribution is 11 of their monthly salary while the employer contributes 13.
Therefore the amount reflected on your payslip will not be exactly 0 2 percent of your salary wages gaji. Government employees domestic workers and the self employed are exempted. With the eis enforced starting from january 1 2018 employers are not allowed to reduce an employee s salary indirectly or directly owing to contributions made to the scheme.
Looking at the table above why is my eis contribution not exactly 0 2 of my wages salary gaji. Any employers that do not comply with the scheme or make false claims could lead to a maximum rm10 000 fine or a jail term of up to two years or both upon conviction. The contribution rate for eis is 0 2 of the employee s salary employer share and 0 2 of the employee s salary employee share.
The actual contribution amount follows section 18 second schedule of the employment insurance act 2017 not the exact 0 2 percent calculation. An employee is defined as a person who is employed for wages under a contract of service or apprenticeship with an employer. Socso malaysia 2020 monthly benefit payment rate s contributions for eis table contributions to the employment insurance system eis are set at 0 4 of the employee s assumed monthly salary.
The contribution rate for employment insurance system eis is 0 2 for the employer and 0 2 for employee based on the employee s monthly salary. The maximum eligible monthly salary is capped at rm 4 000. Proposed by prime minister datuk seri najib razak the employment insurance scheme eis is expected to be tabled in parliament in the july august 2017 sitting.
