Johor Bahru Accounting Firm

Accounting Knowledge – Payments Liable for Sosco & EIS Contribution


Payments Liable for Sosco & EIS Contribution

Any remuneration payable in money to an employee is taken as wages for purposes of SOCSO contributions. This includes the following payments:
1) Salary
2) Overtime payments
3) Commission and service charge
4) Payments for leave; such as annual, sick, maternity, rest day,
public holidays and etc
5) Allowances such as incentives, shift, food/meal, cost of living, housing and etc


Payments not Liable for Sosco & EIS Contribution

All payments made to an employee paid at an hourly rate, daily rate, weekly rate, piece or task rate is considered as wages. However the following payments are not considered as wages:
1) Payments by an employer to any statutory fund for employees
2) Mileage claims
3) Gratuity payments or payments for dismissal or retrenchments
4) Annual bonus

When to Pay EIS Contribution

Both employers and employees must pay EIS contributions when paying SOCSO contributions.


For Education purposes, we make no representations or warranty (expressed or implied) about the accuracy, suitability, reliability, or completeness of the information for any purpose.  Tee & Co accepts no liability, and disclaims all responsibility, for the consequences of anyone acting, or refraining to act, in reliance on the information contained in this publication or for any decision based on it. Recipients should not act upon it without seeking specific professional advice tailored to your circumstances, requirements, or needs