Why No SOCSO / EIS Contribution Appear in Payslip?

EIS and SOCSO contributions are statutory deductions for eligible employees in Malaysia. If these are missing from a payslip, it’s usually due to one of the following reasons:

1. Incorrect Birth Date in Employee Profile
2. No Prior Contribution History Before SOCSO/EIS Eligibility Cut-Off Age
3. New Hire Joined Mid-Month

SOCSO Eligibility

• Employees below 60 years old working in the private sector under a contract of service
• Includes contractual and temporary staff of Federal or State Government, and Federal/State Statutory Bodies
• Monthly contributions are based on the employee’s wages, capped at RM6,000.

Employees are classified into two main categories:

• First Category: All employees below 60 years old contributing to both Employment Injury Scheme and Invalidity Scheme
• Second Category: Employees aged 60 and above (or first employed at 55 and above with no prior contributions) — covered under Employment Injury Scheme only.

EIS Eligibility:

• Malaysian citizen / permanent resident / temporary resident
• Aged 18~60
• Working in the private sector
• Employed under a contract of service

Common Reasons Why SOCSO/EIS Is Not Deducted

Below are the most common causes for missing EIS/SOCSO deductions in an employee's payslip. Use this list to help troubleshoot and resolve the issue.

Reason #1: Incorrect Birth Date in Employee Profile

EIS and SOCSO contributions depend on the employee's date of birth.

• If the employee is under 18: No EIS deduction
• If the employee is over 60: No EIS/SOCSO deduction

Solution: Check employee's birth date and ensure tally with their IC number

Step 1

From the left menu, go to Employee (a) > Directory (b) > Choose employee.

Step 2

In the Employee Profile, view Personal tab. Check the IC number and ensure the Birth Date matches. Update if necessary and Save.

Step 3

Reprocess payroll for the employee.

Reason #2: No Prior Contribution History Before SOCSO/EIS Eligibility Cut-Off Age

• SOCSO: Employee aged 55 and above with no prior contributions before turning 55 fall under the Second Category. Meaning, only the employer contributes (no employee deduction).

• EIS: As per PERKESO guidelines, employees aged 57 and above who have no prior contributions before age 57 are exempt from EIS contributions.

If there is no contribution history recorded in the Previous Employment Figures Take On (PEFTO) screen, Worksy system will treat them as a new, exempt employee.

Solution:

Refer to Payroll Figures Take On (PFTO) & Previous Employment Figures Take On (PEFTO) for step-by-step instructions to enter the figures.

Reason #3: New Hire Joined Mid-Month

SOCSO and EIS contributions are calculated based on wages paid within the payroll month.

If an employee joins in the middle of the month, the contribution amount is based only on their actual wages earned from their start date to the end of the month.

In some cases of very low partial-month wages, the amount may fall into a lower contribution category or appear as zero in the payslip.

Important Note:

Always refer to the latest SOCSO/EIS Contribution Schedule on the PERKESO website to determine the correct contribution category and wage base for your employee. 

We hope this explanation clarifies the matter. If you require additional assistance, do not hesitate to contact our support team.