What Is Epf And Socso

Kwsp is a federal statutory body under the purview of the ministry of finance.

What is epf and socso. Employees provident fund malay. Epf is the english name for kwsp. However it is optional for those with starting salaries above rm3 000. How is the mode of payment and contribution to socso determined.

The extent of the employers obligation to contribute is limited in 2 ways. All payments whether hourly daily weekly or monthly rated are. It manages the compulsory savings plan and retirement planning for private sector workers in malaysia membership of the epf is mandatory for malaysian citizens employed in the private sector and voluntary. Such a transfer can be made through form kwsp 16f by individual or group.

Salary wages full part time monthly hourly overtime payments commission paid. Owing to the once in always in principle a socso member who has contributed to socso will continue to be a member even when salaries have increased to over rm3 000. All renumeration or wages stated below and payable to staff workers are subject to socso contributions. Wages subject to socso contribution.

Socso social security organization also known as perkeso pertubuhan keselamatan sosial was established in 1971 under the ministry of human resources formerly known as ministry of labour to provide social security protections to all employees workers in malaysia. Kumpulan wang simpanan pekerja commonly known by the acronym epf malay. 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 employees under the employees social security act 1969. Forever for unlimited employees.

An employer may with the approval of an employee transfer to the employee s epf account any funds being the retirement benefits of the employee or any funds from any other retirement scheme or plan relating to the employee. Btw payroll my pcb calculator 2020 is powered by hr my s payroll calculator. Socso is the english name for perkeso. If you need more flexible and better payroll calculation such as generating ea form automatically or adding allowance that does not contribute to pcb epf or socso you may want to check out hr my free malaysian payroll and hr software which is absolutely free.

Employee contribution rate is based on the employee s wages overtime commissions service charge annual leave emoluments sick leave maternity leave public holidays incentives meal allowance cost of living and housing allowance and so forth.