If you run payroll in Malaysia, five statutory deductions come off every month and go to three agencies: KWSP (EPF), PERKESO (SOCSO, EIS and SKBBK) and LHDN (monthly tax, PCB). Here is the whole picture on one page, with the current rates, the deadlines, and what changed in 2026.
The five deductions
| Deduction | Agency | Who pays | Rate (standard case) |
|---|---|---|---|
| EPF | KWSP | Employer + employee | Employer 12 to 13%, employee 11% |
| SOCSO | PERKESO | Employer + employee | Employer 1.75%, employee 0.5% (Category 1) |
| EIS | PERKESO | Employer + employee | 0.2% each, capped at RM6,000 wages |
| SKBBK (Lindung 24 Jam) | PERKESO | Employee | 0.75%, capped at RM6,000 (voluntary for locals) |
| PCB (MTD) | LHDN | Employee (you withhold) | Per LHDN formula, varies by employee |
Rates depend on wage, age and citizenship (EPF), on category (SOCSO) and on each employee’s reliefs (PCB). The payroll compliance handbook breaks each one down.
The monthly clock
Whatever your pay date, the remittances are all due by the 15th of the following month: EPF to KWSP, the combined SOCSO + EIS + SKBBK return to PERKESO, and PCB to LHDN on the CP39. Good payroll software produces those files straight from the run, so the monthly job is review, then upload, then pay.
The annual clock
After the year of assessment closes you file the year-end set with LHDN: a Form E return, each employee’s EA statement (give these to staff by the end of February), and the CP8D employee listing. The deadlines page lays out every date in one calendar.
What changed in 2026
- SKBBK (Lindung 24 Jam) started on 1 June 2026 as a new 0.75% employee contribution, then in July 2026 became voluntary for local workers and mandatory for foreign workers. We covered this in detail: SKBBK is now voluntary for locals.
- The SOCSO and EIS wage ceiling sits at RM6,000, so contributions on the higher-paid are calculated up to that cap.
- From June 2026, PERKESO accepts a single combined upload for SOCSO, EIS and SKBBK, so the monthly PERKESO submission stays one file.
Where to look it up
We keep a plain-language reference for each obligation, with rates, wage bands and the rules behind them:
- EPF (KWSP): shares by wage, age and citizenship
- SOCSO & EIS (PERKESO): categories, cover and the RM6,000 ceiling
- PCB / MTD (LHDN): how monthly tax is worked out
- SKBBK (Lindung 24 Jam): the new scheme and who it applies to
- Deadlines & annual filing: the monthly 15th and the year-end forms