What is SOCSO?


SOCSO (Social Security Organization), also known as PERKESO (Pertubuhan Keselamatan Sosial), is a Malaysian government agency that was established to provide social security protections to Malaysian employees under the Employees’ Social Security Act, 1969.

Functions of SOCSO

The functions of SOCSO are as follows:

  1. Registration of employers and employees
  2. Collection of contributions from employers and employees
  3. Payment of benefits to workers and/or their dependents when tragedy strikes
  4. Provision of physical and vocational rehabilitation benefits
  5. Promotion of awareness of occupational safety and health


SOCSO has two insurance schemes for its members, the "Employment Injury Scheme" which provides coverage for workplace accidents, and the "Invalidity Scheme" which provides coverage to employees who suffer from invalidity or death due to any cause and not related to their employment.

Members of SOCSO are divided into two categories, the first of which receive coverage under both schemes, and the second of which receive coverage under the first scheme only. For more information, see this article.

You can select the relevant SOCSO category for each employee in the PayrollPanda app accordingly:


Contribution to SOCSO is mandatory for every Malaysian who is employed under a contract of service or apprenticeship in the private sector and/or any contractual or temporary staff of the Federal/State Government as well as Federal/State Statutory Bodies. For those earning above RM 4,000, the rate of contribution remains the same. Certain employees are not eligible for coverage by SOCSO - more information can be found here.

For any employee on payroll who is non - Malaysian and was entered into the app using their passport number, the field automatically becomes unselectable and Not Applicable will be set as the default SOCSO Category.

Was this article helpful?

Get Started

Can’t find what you’re looking for?

Our award-winning customer care team is here for you.

Contact Support