# PERKESO — worker's social insurance, not your savings

> PERKESO (SOCSO) is Malaysia's social insurance body under the Ministry of Human Resources — a small contribution that pays out when a worker is injured, disabled or dies, not a personal savings account like EPF.

- Category: glossary
- Language: en
- Status: published
- Updated: 2026-07-24
- Canonical: https://negaraku.md/en/glossary/socso-perkeso

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**Bahasa Malaysia:** Pertubuhan Keselamatan Sosial (PERKESO) · **English:** Social
Security Organisation (SOCSO) · **中文:** 社会保险机构

Look at your payslip. Two deduction lines look almost the same — but only one
of them is your money. Your EPF money goes into an account in your name. Your
PERKESO money does not: it is an insurance premium pooled together, and you
only "get it back" if something happens to you.

That is the basic distinction people confuse most often.

## What PERKESO is

PERKESO is a statutory body under the Ministry of Human Resources that
administers four social insurance laws — now rebranded under the name
LINDUNG:

| Act | LINDUNG name | For whom |
|---|---|---|
| Act 4 (Employees' Social Security Act 1969) | LINDUNG PEKERJA | Employees with an employer |
| Act 800 (Employment Insurance System Act 2017) | LINDUNG KERJAYA | Employees who lose their jobs |
| Act 789 (Self-Employment Social Security Act 2017) | LINDUNG KENDIRI | Self-employed persons |
| Act 838 (Housewives Social Security Act 2022) | LINDUNG KASIH | Housewives |

## PERKESO versus EPF — don't mix them up

|  | PERKESO (Act 4) | EPF (Act 452) |
|---|---|---|
| Nature | Social insurance — risk pooled together | Retirement savings — personal account |
| When it pays out | When an accident, invalidity or death occurs | When you withdraw it (generally from age 55) |
| Ministry | Ministry of Human Resources | Ministry of Finance |
| Wage ceiling | RM6,000 a month for contribution purposes | No equivalent ceiling; the employer rate changes at the RM5,000 wage level |
| Personal balance | None | Yes, and it earns dividends |

In short: EPF builds up savings; PERKESO buys protection. Details of the
retirement scheme are in [EPF](/en/glossary/epf).

## Act 4 contribution rates

Contributions are calculated according to the contribution schedule, subject
to a monthly wage ceiling of RM6,000 since 1 October 2024 — not a round
percentage applied to the actual wage.

For employees under 60 years old (First Category) who **join** the LINDUNG
24 Jam Scheme, PERKESO's official breakdown is as follows:

| Share | Employment Injury Scheme | LINDUNG 24 Jam | Invalidity Scheme | Total |
|---|---|---|---|---|
| Employer | 1.25% | — | 0.5% | **1.75%** |
| Employee | — | 0.75% | 0.5% | **1.25%** |

Note the condition: the employer's share stays at 1.75% in all cases, but the
employee's share depends on their choice. Local employees who do **not** join
LINDUNG 24 Jam contribute only the 0.5% Invalidity Scheme, without that 0.75%
component.

For employees aged 60 and above (Second Category), only the Employment Injury
Scheme applies and the 1.25% contribution is borne entirely by the employer.
LINDUNG 24 Jam, meanwhile, has no upper age limit on coverage as long as a
person holds employee-with-an-employer status — so Second Category employees
who join it still contribute the employee's share for that scheme.

## LINDUNG 24 Jam — what's new in 2026

The Non-Work-Related Accident Scheme (SKBBK), or LINDUNG 24 Jam, took effect
on 1 June 2026 under the Employees' Social Security (Amendment) Act 2026 [Act
A1788]. It covers accidents that occur **outside** working hours within
Malaysia.

- Contributions are **borne entirely by the employee** — the employer adds
  nothing.
- Rates are staged: 0.75% (1 June 2026–31 May 2028), 1.00% (1 June 2028–31
  May 2031), 1.25% (from 1 June 2031).
- Following the Cabinet decision of 8 July 2026, it is **mandatory for
  foreign workers** and **voluntary for local workers**.
- Local workers who do not want to join must make their choice through the
  LINDUNG Faedah Portal between 13 July and 31 August 2026. If no action is
  taken, the worker is deemed to have joined automatically.

The June 2026 contribution remains mandatory and cannot be claimed back.

## Common mistakes

- **Thinking PERKESO is a "second EPF".** It is not savings; there is no
  balance to withdraw at age 55.
- **Forgetting SIP/EIS.** The Employment Insurance System under Act 800 is a
  separate, third deduction — 0.2% employer and 0.2% employee.
- **Calculating 1.75% straight off the wage.** Use PERKESO's contribution
  schedule and the RM6,000 ceiling, not a straight percentage multiplication.
- **Assuming self-employed persons are covered.** They must register
  separately under Act 789.
- **Ignoring the penalty.** For failing to deduct the LINDUNG 24 Jam
  contribution that should have been deducted, an employer who is convicted
  may be imprisoned for up to two years or fined not exceeding RM10,000, or
  both — even though a six-month grace period was given after the scheme took
  effect.

## What's next

Check your own contribution status through the PERKESO PRIHATIN Portal, or
call the 1300-22-8000 line. For a full overview of the calendar and rates for
statutory salary deductions, refer to [payroll rates and
deadlines](/en/employment/payroll-rates-deadlines-malaysia) and the [PERKESO
& SIP employer guide](/en/employment/socso-eis-employer-guide). To
understand the Act-number references used here, see [Akta](/en/glossary/akta).

## Sources

- Kadar Caruman — https://www.perkeso.gov.my/perkhidmatan-kami/majikan-pekerja/kadar-caruman.html (PERKESO)
- Akta dan Peraturan — https://www.perkeso.gov.my/en/about-us/source/act-regulation.html (PERKESO)
- Skim Kemalangan Bukan Bencana Kerja (LINDUNG 24 JAM) — https://www.perkeso.gov.my/skim-kemalangan-bukan-bencana-kerja-lindung-24-jam.html (PERKESO)
- LINDUNG — penjenamaan semula skim perlindungan PERKESO — https://www.perkeso.gov.my/lindung.html (PERKESO)
- Soalan-Soalan Lazim (FAQ) — Perluasan Perlindungan Keselamatan Sosial di bawah Skim Kemalangan Bukan Bencana Kerja / LINDUNG 24 Jam, Ver 2.0 — https://www.perkeso.gov.my/images/lindung/lindung-24-jam/160726V2-FAQ_PERLINDUNGAN_SKBBK_Ver2.0_FAQL24J.pdf (PERKESO)
- Siaran Media — Perluasan Perlindungan 24 Jam untuk Lebih 9 Juta Pekerja, Berkuat Kuasa Mulai Hari Ini — https://www.perkeso.gov.my/images/kenyataan_media/2026/010626-PR%20LINDUNG%2024%20JAM%20BERKUATKUASA%20Final.pdf (PERKESO / Kementerian Sumber Manusia)
- Statutory Contributions — https://www.mida.gov.my/setting-up-content/statutory-contributions/ (MIDA)
- Act 452 — Employees Provident Fund Act 1991 — https://lom.agc.gov.my/act-detail.php?act=452&lang=BI (Jabatan Peguam Negara)
- Jabatan & Agensi di bawah Kementerian Kewangan — https://www.mof.gov.my/portal/ms/profil/jabatan-agensi (Kementerian Kewangan Malaysia)

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