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Statutory Contributions The compulsory contributions under the Employees Provident Fund (EPF) Act 1991: Age Group 55 Years and Below Employers - Minimum of 12% of the employees' monthly wages Employees - Minimum of 8% of the employees' monthly wages Age Group 55-75 Years Employers- Minimum of 6% of the employees' monthly wages Employees- Minimum of 5.5% of the employees' monthly wages All foreign workers and expatriates and their employers are exempted from compulsory contributions. They can, however choose to contribute and the applicable rates are as follows:- Age Group 55 Years and Below Employers - RM5.00 (US$1.39) per employee per month Employees- 8% of the employees' monthly wages Age Group 55-75 Years Employers- RM5.00 (US$1.39) per employees per month Employees- 5.5% of the employees' monthly wages
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<td width="61">Source:</td>
<td width="518">Employees Provident Fund - <a href="http://www.kwsp.gov.my/">www.kwsp.gov.my</a></td>
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The Social Security Organisation (SOCSO) administers two social security schemes for workers earning wages not exceeding RM3,000 (US$834) per month. Once covered, workers remain covered irrespective of their wages. However, the maximum contribution is based on wages of RM3,000 (US$834) per month. All employees whom have been employed by an employer under a contract of service of apprenticeship are liable under SOCSO's act. 
Contribution under Employment Injury Insurance Scheme: 
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<li>Employers - 1.25% of the employee's wages </li>
<li>Employees - Nil </li>
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Contribution under the Invalidity Pension Scheme: 
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<div>1% of the employee's wages shared equally by the employer and employee.</div>
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The Human Resources Development Fund (HRDF) operates on the basis of a levy/grant system. Employers who have paid the Human Resources Development levy will qualify for training grants from the HRDF to defray or subsidise training costs for their Malaysian employees. 
Manufacturing companies cover under the Human Resources Development Berhad Act, 2001 are as follows: 

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<td width="350" height="27">Categories of Employers</td>
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<div>Rate of Levy Contributions</div>
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Employers with fifty employees and above (with effect from 1 January 1993);
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1% of employees' monthly wages
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Employers with ten to forty-nine employees and a paid-up capital of RM2.5 million (US$754,375) and above (with effect from 1 January 1995); and
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1% of employees' monthly wages
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Employers with ten to forty-nine employers and a paid-up capital of less than RM2.5 million (US$754,375), are given the option to register with HRDF (with effect from 2 August 1966) 
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0.5% of employees' monthly wages
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Sources: Social security Organisation (SOCSO) - <a href="http://www.perkeso.gov.my">www.perkeso.gov.my</a>
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Starting a Business

Statutory Contributions

Statutory Contributions

The compulsory contributions under the Employees Provident Fund (EPF) Act 1991:

Age Group 55 Years and Below

Employers - Minimum of 12% of the employees' monthly wages
Employees - Minimum of 8% of the employees' monthly wages

Age Group 55-75 Years

Employers- Minimum of 6% of the employees' monthly wages
Employees- Minimum of 5.5% of the employees' monthly wages

All foreign workers and expatriates and their employers are exempted from compulsory contributions. They can, however choose to contribute and the applicable rates are as follows:-

Age Group 55 Years and Below

Employers - RM5.00 (US$1.39) per employee per month
Employees- 8% of the employees' monthly wages

Age Group 55-75 Years

Employers- RM5.00 (US$1.39) per employees per month
Employees- 5.5% of the employees' monthly wages

Source:

Employees Provident Fund - www.kwsp.gov.my

The Social Security Organisation (SOCSO) administers two social security schemes for workers earning wages not exceeding RM3,000 (US$834) per month. Once covered, workers remain covered irrespective of their wages. However, the maximum contribution is based on wages of RM3,000 (US$834) per month.

All employees whom have been employed by an employer under a contract of service of apprenticeship are liable under SOCSO's act.

Contribution under Employment Injury Insurance Scheme:

Employers - 1.25% of the employee's wages
Employees - Nil

Contribution under the Invalidity Pension Scheme:

1% of the employee's wages shared equally by the employer and employee.

The Human Resources Development Fund (HRDF) operates on the basis of a levy/grant system. Employers who have paid the Human Resources Development levy will qualify for training grants from the HRDF to defray or subsidise training costs for their Malaysian employees.

Manufacturing companies cover under the Human Resources Development Berhad Act, 2001 are as follows:

Categories of Employers	Rate of Levy Contributions
Employers with fifty employees and above (with effect from 1 January 1993);	1% of employees' monthly wages
Employers with ten to forty-nine employees and a paid-up capital of RM2.5 million (US$754,375) and above (with effect from 1 January 1995); and	1% of employees' monthly wages
Employers with ten to forty-nine employers and a paid-up capital of less than RM2.5 million (US$754,375), are given the option to register with HRDF (with effect from 2 August 1966)	0.5% of employees' monthly wages

Sources: Social security Organisation (SOCSO) - www.perkeso.gov.my

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