PERKESO — worker's social insurance, not your savings

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.

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 and the PERKESO & SIP employer guide. To understand the Act-number references used here, see Akta.