Socso Contribution Table 2024: A Comprehensive Guide

Introduction

The Social Security Organization (Socso) is a Malaysian government agency responsible for providing social security protection to employees in the private sector. One of its key responsibilities is to collect contributions from employers and employees to fund its various social security programs, including medical benefits, disability benefits, and retirement benefits.

The Socso contribution table outlines the rates and thresholds for contributions in a given year. These rates are reviewed periodically by Socso and may be adjusted to ensure the sustainability of the social security fund.

2024 Socso Contribution Rates

For 2024, Socso has announced the following contribution rates:

• Employer's contribution: 1.75% of monthly wages
• Employee's contribution: 1.0% of monthly wages

Contribution Thresholds

The Socso contribution table also includes thresholds for contributions. These thresholds determine the maximum amount of monthly wages that are subject to Socso contributions.

For 2024, the contribution thresholds are as follows:

• Monthly wage ceiling: RM4,000
• Monthly wage floor: RM250

This means that employers and employees are only required to contribute on monthly wages between RM250 and RM4,000.

How to Calculate Socso Contributions

To calculate your Socso contributions, simply multiply your monthly wages by the applicable contribution rate.

For example, if your monthly wages are RM3,000:

• Employer's contribution: RM3,000 x 1.75% = RM52.50
• Employee's contribution: RM3,000 x 1.0% = RM30.00

Importance of Socso Contributions

Socso contributions are essential for ensuring the sustainability of the social security fund. These contributions help to provide financial protection to employees in the event of an accident, disability, or retirement.

Employers are required by law to deduct Socso contributions from their employees' wages and remit them to Socso. Failure to do so may result in penalties.

Conclusion

The Socso contribution table is an important resource for employers and employees who need to understand their Socso obligations. By following the guidelines outlined in the table, you can ensure that you are making the correct contributions and that you are protected by Socso's various social security programs.