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Malaysia Introduces New Social Security Contribution Requirements for Foreign Workers

05 February 2019

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Approved Changes

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Malaysia

Effective from 1 January 2019, Malaysia has introduced new social security contributions requirements for foreign workers. This includes that employers must register all foreign workers, except domestic servants, with Malaysia' Social Security Organization (SOCSO) and make contributions to the Employment Injury Scheme at a rate of 1.25% on an employee's monthly salary plus other compensation, such as overtime pay, commissions, paid leave, etc. The contribution requirement follows a change in the administration of accident compensation from the Department of Labour to SOCSO. For foreign workers already under the prior Foreign Workers Compensation Scheme, the requirement to be registered under the...