How to Calculate EPF, SOCSO, EIS and PCB in 2026 (with Examples)

EPF, SOCSO, EIS and PCB rates for 2026

These rates are for Malaysia citizens and permanent residents under 60. SOCSO, LINDUNG 24 Jam and EIS stop at a wage ceiling of RM 6,000 a month; EPF has no ceiling. Staff aged 60 and over and foreign workers have their own rates, shown further down.

How to calculate EPF

EPF (KWSP) is retirement savings that both sides pay into:

• Staff: 11% of the salary
• Employer: 13% if the salary is RM 5,000 or less, 12% if it is more

EPF counts basic salary, commission, most allowances and bonuses. Overtime, travel allowances and service charge do not count.

On a salary of RM 3,000, the staff member pays 11% × RM 3,000 = RM 330 and the employer pays 13% × RM 3,000 = RM 390. EPF is always paid in whole ringgit, rounded up. For salaries that aren't round numbers, the official EPF table (the Third Schedule) groups pay in RM 20 steps up to RM 5,000 and RM 100 steps above that, so a salary of RM 2,990 pays the same as RM 3,000.

How to calculate SOCSO and LINDUNG 24 Jam

SOCSO (PERKESO) covers staff for accidents at work, and for disability or death:

• Staff: 0.5% of wages
• Employer: 1.75% of wages

SOCSO follows PERKESO's contribution table, which groups wages in steps of RM 100, up to RM 6,000. Unlike EPF, overtime counts. On RM 3,000, the table gives RM 14.75 for the staff member and RM 51.65 for the employer.

LINDUNG 24 Jam started on 1 June 2026. It covers accidents outside work, around the clock. Only the staff member pays: 0.75% of wages up to RM 6,000, at most RM 44.65 a month. The employer takes it from the salary and pays it to PERKESO together with SOCSO.

• Foreign workers must pay it.
• For Malaysia staff it has been voluntary since July 2026. They are in by default, unless they opted out with PERKESO.
• The rate goes up to 1% on 1 June 2028 and 1.25% on 1 June 2031.

On RM 3,000, LINDUNG 24 Jam is RM 22.15 a month.

How to calculate EIS

EIS (SIP) helps staff who lose their job. Both sides pay 0.2% of wages, up to RM 6,000, using PERKESO's table. On RM 3,000, that is RM 5.90 each. EIS is not paid for staff aged 60 and over, or for foreign workers.

How to calculate PCB

PCB (Potongan Cukai Bulanan) is income tax taken from the salary each month and paid to LHDN. LHDN's formula works out the staff member's tax for the whole year, then spreads it over the months. In short:

1. Take the pay for the year.
2. Take away the reliefs: RM 9,000 for every individual, EPF up to RM 4,000, SOCSO and EIS up to RM 350, plus RM 4,000 for a spouse who doesn't work and RM 2,000 for each child under 18.
3. Work out the tax on what is left, using LHDN's tax rates.
4. Take away the RM 400 rebate if what is left is RM 35,000 or less.
5. Divide by 12.

Here it is for a single staff member on RM 5,500 a month:

On real payslips, PCB moves by a few ringgit from month to month, because the formula counts the SOCSO and EIS relief as it builds up during the year. The October 2026 payslip shows RM 147.65, and over the year the deductions still add up to RM 1,791.50.

If the same staff member is married to a spouse who doesn't work and has 2 children under 18, PCB drops to RM 97.35 in October 2026. A single staff member on RM 3,000 pays no PCB at all: their tax for the year, RM 230.70, is less than the RM 400 rebate.

Staff with other reliefs, such as life insurance or medical bills, can give their employer LHDN's form TP1, so PCB counts them too.

Example 1: RM 3,000 a month

A made-up staff member: Malaysia citizen, under 60, single, October 2026.

• Net pay: RM 3,000 − RM 372.80 = RM 2,627.20
• Cost to the employer: RM 3,000 + RM 447.55 = RM 3,447.55
• If the staff member opted out of LINDUNG 24 Jam, net pay is RM 2,649.35.

Example 2: RM 5,500 a month

The same staff member, now on RM 5,500. The employer's EPF drops to 12%, because the salary is above RM 5,000.

• Net pay: RM 5,500 − RM 831.65 = RM 4,668.35
• Cost to the employer: RM 5,500 + RM 766.25 = RM 6,266.25

Overtime, bonuses and pay above RM 6,000

Overtime counts for SOCSO, LINDUNG 24 Jam, EIS and PCB, but not for EPF. Add RM 300 of overtime to the RM 3,000 salary and EPF stays at RM 330, while SOCSO goes up to RM 16.25, LINDUNG 24 Jam to RM 24.35 and EIS to RM 6.50. Net pay becomes RM 2,922.90.

Bonuses count for EPF and PCB, but not for SOCSO, LINDUNG 24 Jam or EIS. PCB on a bonus is worked out on its own, in the month it is paid.

Above RM 6,000, SOCSO, LINDUNG 24 Jam and EIS stop going up. On RM 8,000, the staff member pays RM 29.75 SOCSO, RM 44.65 LINDUNG 24 Jam and RM 11.90 EIS, the same as on RM 6,000. EPF keeps going: RM 880 for the staff member and RM 960 for the employer.

Staff aged 60 and over, and foreign workers

For example, a citizen aged 60 or over on RM 3,000 has only LINDUNG 24 Jam (RM 22.10) taken from the salary, so they take home RM 2,977.90, while the employer pays RM 120 EPF and RM 36.90 SOCSO. A foreign worker on RM 2,000 pays RM 40 EPF, RM 9.75 SOCSO and RM 14.65 LINDUNG 24 Jam, and takes home RM 1,935.60.

Permanent residents aged 60 and over pay 5.5% EPF, and their employer 6.5% (6% above RM 5,000). Staff who are in Malaysia for less than 182 days in a year pay PCB at a flat 30%.

When to pay EPF, SOCSO, EIS and PCB

All of them are due by the 15th of the next month. For October 2026 salaries, that is 15 November 2026.

• EPF: to KWSP, through i-Akaun (Employer)
• SOCSO, LINDUNG 24 Jam and EIS: to PERKESO, through its ASSIST portal
• PCB: to LHDN, through MyTax

Paying late brings penalties, so it helps to set a reminder a few days before the 15th.

Let a calculator or payroll system do the sums

You don't need to work through the tables by hand:

• Our free EPF, SOCSO, EIS and PCB calculator does one payslip at a time, with LINDUNG 24 Jam, overtime, bonuses and a payslip PDF.
• Our Payroll & HR System runs payroll for every staff member in one click, sends payslips on WhatsApp, and gets the KWSP, PERKESO and LHDN files ready before the 15th.

Sources: KWSP on employer contributions, KWSP on foreign workers, PERKESO LINDUNG 24 Jam FAQ, PERKESO on foreign workers, LHDN PCB formula for 2026, RinggitPlus on LINDUNG 24 Jam.

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