Payments Subject to SOCSO/EIS Contribution
"Wages" for contribution purposes refers to all remuneration payable in money by an employer to an employee.
This includes:
- Basic Salaries
- Overtime payments
- Commissions
- Payments in respect of leave
- Service charges
Payments Exempted From SOCSO/EIS Contribution
The payments below are not considered “wages” and are not included in the calculations for monthly deductions:
- Any contribution payable by the employer towards any pension or provident fund
- Any travelling allowance
- Any gratuity payable on discharge or retirement of the employee
- Any sum paid to cover expenses incurred by the employee in the course of his duties
- Annual bonus
- Gifts - eg, cash payments for holidays like Hari Raya, Christmas
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