Job Seeker Handbook

Malaysian Labour Law : Regulation of Employment

9. SOCSO

9.3 Wages Mean For The Purpose Of SOCSO Contribution

  • For the purpose of SOCSO contribution, wages mean all remuneration payable in money to an employee. The following payments are considered as wages :
    • salary
    • overtime payment
    • commissions and service charge
    • payment for leave, sick, annual, rest day, public holidays, maternity and others
    • allowances, shift, incentive, housing, food, cost of living and others.
  • Payments made to an employee paid at an hourly rate, daily rate, weekly rate, task or piece rate are also considered as wages.
  • However, the following payments are not considered as wages :
    • payments by an employer to any statutory fund for employees
    • mileage claims
    • gratuity payments or payments for dismissal or retrenchment
    • annual bonus.

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